While it is common for completion to be undertaken through post in residential conveyancing, sometimes when the transaction is complicated, they are undertaken by personal attendance of solicitors of both parties. The following article discusses these in detail.
What happens at completion
Appointment for completion
A few days prior to completion the buyer’s solicitor should call the seller’s solicitor and arrange for a mutually agreeable date for completion.
Transfer of funds
The buyer’s solicitor should arrange with the bank for transfer of funds to the seller’s solicitor’s account.
Documents to be taken on completion
The buyer’s solicitor or his representative nominated to attend the completion process should have with him the following documents;
a) The contract.
b) An evidence for the title.
c) A copy of the draft transfer deed or any other document that is to be executed by the seller so that it can be handed over to him on completion.
d) Answers to requisitions as it is possible that queries may arise.
e) A complete checklist and completion statement.
f) Documents that are required to be handed over to the seller’s solicitor on completion.
Verifying the title
Verification is done by comparing the original title deeds of the property with the abstract or epitome provided by the seller. Verification is usually left until completion, but if photocopies of the title were already provided, this is a mere formality. If discrepancies are found, the buyer is allowed to object. However there would be a delay in the process. In the case of unregistered land, verification is not considered necessary as the official copies supplied by the seller’s solicitor shall reveal the truth and the up-to-date position of the register.
Title documents
Once the buyer has checked and verified the title, he shall now ask for documents related to the land to be handed over to him. The list of documents to be given are previously agreed upon and complied in a checklist. The buyer’s solicitor then checks each and every document and ticks against their name in his checklist. Although land and charge certificates are no longer issued (they were stopped from October 3003 onwards), and are not necessary (they are not required when an application to register is to be made at the Land Registry office), the existing certificates should be handed over. Any documents that were requested during the transaction and were not previously handed over should be handed over by the seller. These include planning consents, building regulation approval, indemnity insurance policies, etc,
Transfer deeds
The buyer has to hand over the transfer deed to the seller’s solicitor. It should be dated on the completion day and after checking if the deed was altered since the last time he saw the document.
Schedule of deeds
The seller’s solicitor should prepare a schedule of deeds in duplicate. One of these copies should be handed over to the buyer’s solicitor to keep and the other to be signed after he is satisfied that all documents are received and returned to seller’s solicitor as evidence that the deeds are handed over.
Inspection of receipts
Sometimes, it becomes necessary to check the last receipts when outgoing payments have been paid in the completion statement. Copies of these receipts should be provided to the buyer’s solicitor along with the completion statement so as to allow him to check the amount of apportionment.
Chattels
When the sale includes fittings or chattels a separate receipt of this is to be made and signed by the seller’s solicitor. A copy of this receipt remains with the seller’s conveyancer. This is because the receipt made earlier was on the transfer deed only and a separate receipt for chattels is necessary.
Discharge of seller’s mortgage
Both parties to the transaction would have previously agreed on arrangements to be made for the discharge of the seller’s mortgage. This is usually done at the stage when requisition is sent for examination of title. When the mortgage is the first for the property and in favour of a building society lender, this arrangement would have featured frequently in the transaction. Both parties would have agreed that discharge would take place upon completion once the balance amount is paid. In such circumstances, it would also be agreed upon by both parties that the seller’s solicitor shall have to provide an undertaking to the effect that the discharge shall be made and the receipted deed (or form DS1 thereof) shall be forwarded to the buyer’s solicitor as soon as it is obtained from the lender. This undertaking is worded in the format provided by The Law Society and should be accepted only from a licensed conveyancing solicitor or conveyancer. This is because it is difficult to enforce it against unlicensed personnel. The undertaking approved by the Law Society goes as follows:
In consideration of you today completing the purchase of [insert description of property] we
hereby undertake to pay over to [insert name of lender] the money required to discharge the
mortgage/legal charge dated [insert date of charge] and to forward the receipted mortgage/Form
DS1 to you as soon as it is received by us from [insert name of lender].
For cases where protocol is applicable, the undertaking is given in the TA13 Completion Information and Undertakings Form.
However, it is has now become common among lenders to effect discharge of mortgage through the Electronic Discharge or ED system. Through the system, the lender sends an electronic message to the Registry asking them to remove the charge from the Register, thereby negating the need for a paper based system. An e-DS1 form is to be filled by lenders through the Land Registry portal in this regard. The e-DS1/DS1 form will have to be modified depending on the fact that it is the lender and not the seller’s solicitor who is making the discharge.
Documents to be handed to the seller’s solicitor
Once the buyer’s conveyancing solicitor receives the receipt of discharge from his counterpart, he should inspect and make sure that these documents are to his satisfaction. He should also make arrangements to hand over remaining documents mentioned in the list agreed before completion. Thus, documents such as release of deposit by the agent, banker’s draft for mentioned amount, etc. would be released to the seller’s conveyancing solicitor.
Copy Documents
Sometimes, the seller is entitled to retain the original title deeds, thereby providing only a copy of the title documents. This is usually the case when a part of unregistered land is sold. Other instances include situations where property is purchased from personal representatives through deeds that allow them to retain the original grant. This is also applicable when land is purchased through a power of attorney; whether enduring or general. When the power is a special one, the buyer can make a claim for the original deed.
Irrespective of the situation, when a demand for the original title deed is made and not provided, the buyer’s solicitor should ask for the originals and verify the document against the original. This copy should be marked as examined and verified against the original. Thus, the document becomes a certified true copy of the original. In the case of a sale of a part of unregistered land, all documents mentioned in the abstract or epitome of title will have to be so marked and each examined document should be worded as follows:
examined against the original at the offices of [insert name of seller’s solicitors or as appropriate]
signed [by buyer’s solicitor’s representative either in his own name or in the name of the firm] and
dated [insert date of examination].
The certification should be done by a licensed and qualified conveyancing solicitor by writing in a clear manner the following;
I certify this to be a true copy of the [insert type of document] dated [insert date of document
being certified] signed [signature of solicitor] and dated [insert date of certification].
Photo courtesy: Adam Burt
