Summary
Summary of completion of the freehold
- Module
- Real Estate
- Institution
- University Of Law (ULaw)
Summary of completing the freehold transaction in a real estate setting.
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Completion of a freehold transactionObjective – Understand the steps that need to be taken after exchange to lead to a successful completion of a
transaction.
The buyer’s solicitor’s pre-completion checklist:
Draft and agree the transfer (aka purchase deed) (TR1 – for registered land) (TP1 for sale of part). Draft
copy sent to seller solicitor.
Submit requisitions of title/completion information and undertakings Form TA13: practical issues like
where to send money, where to get keys, enquire as to whether there have been any changes since
inspection and get an UNDERTAKING from the seller solicitor that the mortgage will be redeemed upon
completion.
Pre-completion searches (OS1) – send to Land Registry. This is for searches made on the register
since the date of the Official Copies and gives the searcher a PRIORITY PERIOD for registrations of 30
days to complete and register the sale from that OS1 date.
o It also tells you if the seller is bankrupt but if they are a company then do an insolvency
search at Companies House.
o Companies House search against the buyer. You will have already done one in relation to
seller. You are just checking that the company exists and that it is solvent. Helpful if also
acting for the lender.
o K16 search appropriate if: the buyer is bankrupt or is mortgaging a property and you act for
the lender.
o May also be advisable to re-inspect the property to check there is no change in condition and
no new occupiers.
Need to make sure we have the money in time for completion from the buyer and the lender.
Ensure that money required for completion will be available.
Mortgage finance: buyer solicitor receives notice from seller’s solicitor stating how much is required to
complete. They then send this and an invoice for their fees to their client. Also contact lender to ensure
funds will arrive on the day of completion.
TR1 checklist:
Transferor is always the seller.
For the consideration – need to put the whole purchase price in both words and figures and make sure
you don’t deduct any deposit.
When looking at what type of title guarantee is being given, make sure you put what has been agreed in
the contract.
The buyer also executes the transfer – often it is necessary due to clause 11. If there is something that
the buyer needs to do.
Look at the transfer and see if the buyer needs to do something and if they do then you need to execute
the transfer.
Technically the buyer doesn’t need to receive it to sign it.
Another situation when the buyer needs to sign the transfer is when there are multiple buyers as they
would need to agree to either tenancy in common / joint tenants or held on trust.
Remember to always check boxes 10 and 11.
OS1 searches checklist:
In box 7 the date you put is the date you received in the title register this is because you are basing the
title investigation check on any more recent entries to the register.
You don’t put the buyer because the priority period search means that they would automatically protect
the buyer so you would put the lender.
It doesn’t work the other way round because you don’t automatically protect the lender if you put the
seller.
The priority period gives the buyer protection over subsequent entries into the register and freezes the
register to allow you to go forward and complete.
May happen if they are creditors that would want to register a charge and as long as it has been
registered in time.
The priority period is 30 working days from the date of the OS1 search results.
You must have completed and applied for registration at the land registry and the land registry must
have received the registration before the end of the priority period.
What do you do if the OS1 search reveals adverse entries on the register that you weren’t expecting?
If you let the priority period expire then you are no longer protected and adverse entries could be added
and you would have to purchase the property with those adverse entries.
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