Once a property sale completion is over, the land transaction must be returned to the HMRC informing them about the details of the transaction and the buyer. This procedure should be followed even when SDLT is not payable. Form SDLT1 is to be filled to complete the process. This form is lengthy, hence appropriate action should be taken to ensure that it is filled and ready before completion. Usually, conveyancing solicitors charge an extra fee to undertake this job as the process is lengthy and involves lot of work.
In the case of a conveyancing solicitor acting on behalf of the buyer and the lender, it is important that this process be completed before loan is used as finance. This is to safeguard the lender, because if the loan money is used, there are chances that the buyer may refuse to file the return, thereby causing the transaction (including the mortgage) to be registered at the Land Registry. And the lender may not have any security for the loan. Failure to commence the land transaction returns process before the loan is used can result in the lender’s conveyancing solicitor being held liable in the event of any loss suffered by the lender.
Photo courtesy: R Barraez D´Lucca
