Real estate (Level 6) Workshop 5 PDF

Preview

Summary

Level 6 - Year 3 - LLB Law degree....

Description

Prep task 2: 1. Pre-Completion searches I would carry out on this transaction; ● OS1 land registry search at land registry - Check anything been added to the title in the time frame to get the priority period ● K16 Land Registry Search at Land Registry - Bankruptcy search for individuals - Ensure the buyer still has the means to pay 2. Refer to the document - OS1 form 3. Documents which should be included in the enclosed list; - Sellers solicitor has to give to the buyers solicitor ● Title documents ● Guarantees ● Planning permission documents ● Building regs certificate ● Receipt for money paid for chattels - Important for SDLT 4. TA13 - Pre completion form for residential transactions The sources of the money for completion are coming from CO-OP bank & the buyers from their deposit. - The co-op will want to see the report on title, clear OS1 and clear bankruptcy search before giving mortgage The steps needed to ensure the money is in the firm's client bank account ready for completion; ● Payment to be made only by a direct transfer of cleared funds and an unconditional release of a deposit held by a stakeholder ● The buyer's solicitor should arrange with the bank to transmit the balance of the purchase price to the bank account nominated by the sellers solicitor - (4.2 TA13 form) - HSBC - Once sent, will phone & say they can complete ● Search fees ● Solicitors fees ● SDLT

Prep task 3: ● Damages for breach of contract using hadley v baxendale to put them back in the pre contract position - Removal vans - Staying in hotel ● The seller is not entitled to rescind the contract at this time (6.1.1 - Time is not of the essence of the contract) ● compensation , take into consideration any damages awarded already - Calculated on days, not working days) ● Specific performance - notice to complete (6.8) within 10 working days - Rescind the contract (7.4) - Keep the deposit - Claim damages

Prep task 4: CLLS  Protocol ● Intended for use in commercial property transactions and high value residential transactions where the seller’s lender will be releasing the property from its charge and the buyer has a lender taking first legal charge over the property ● Requires a number of steps to be taken prior to completion in relation to the seller’s mortgage a) DS1 executed by the outgoing lener to be obtained and helf undated by either the seller's solicitor or the outgoing lenders solicitor b) Undertaking to be given by the seller’s solicitor to the sellers lender’s solicitors to forward the funds needed to redeem the mortgage immediately after completion. ● Completion = Buyers solicitor releases completion money to seller immediately after completion & sellers solicitor releases DS1 to buyer. - Sellers solicitor gers DS1 from the bank - Solicitors giving undertakings to each other ● Buyer’s solicitor can redeem the seller's mortgage using completion money.

Prep task 5: When acting for the buyer, the buyers solicitor should do the following as soon as possible after completion has taken place; ● Pay any SDLT due within 14 days of completion - late SDLT = fines and penalties - send receipts to land registry to prove how much paid for them - Paid using SDLT1 form, receive SDLT5 form - Can't register new owner at land registry until paid ● AP1 -

-

Register the transfer Discharge the sellers mortgage Register the new mortgage 30 working days from the date of the OS1 search results ‘priority period’ (why do the OS1 search as close to completion as possible to give maximum time to register at land registry) Failure to register = lose priority period TR1, SDLT5, DS1, death certificate, appointment of second trustee proof

● Mortgage deed to produce to lender to create mortgage & fee payable ● Register any charge created by a company at a company's house within 21 days of its creation - Fee is payable. ● Register the new owners at land registry within 30 working days When acting for the lender, the lenders solicitor should do the following; ● Mortgage registered at land registry ● Company = register at companies house 21 days Consequence of non compliance = Solicitor liable in negligence...