A conveyancing solicitor’s job does not end with completion; there are a number of things that are to be dealt with immediately. This article explains the steps to be carried out in most transactions, although some of them may not be relevant in all circumstances.
The first thing that the conveyancing solicitor (representing the buyer or seller) should do is to inform his client about the outcome of completion. This should be done as soon as possible. This is usually done through phone. And when the lender is also represented by the conveyancing solicitor, he should be informed as well. This could be done through letter sent by first class post on the day of completion.
Contact the buyer’s solicitor
When completion takes place by post, the conveyancing solicitor should inform the client that completion has taken place.
Contact the estate agent
Call the estate agent and inform him that completion has taken place and ask him to release the keys of the property to the buyer.
Send documents to the buyer’s solicitor
If completion has taken place by post, the solicitor should send all documents related to the completion, viz. transfer deed, title deed and other related documents by first class post.
Deal with the proceeds of the sale
When the proceeds of a sale are to be paid for another transaction, the conveyancing solicitor should arrange for these to be done immediately and according to the instructions received by him, from the client. Ideally, when the client is involved in a sale and simultaneous purchase of another property, the proposed time of completion is as short as an hour. Thus, it is very important that the proceeds from the sale are dealt with immediately. And if instructed to act so, he should pay the estate agent his fees and seek a receipt for the payment. The proceeds from the sale should be deposited in the seller’s bank account or as instructed by the client. He should also submit accounts to the client for the balance of the proceeds of the sale according to instructions received.
Discharge the seller’s mortgage
A conveyancing solicitor acting for the seller has to ensure that his client’s mortgage is discharged as soon as he receives money from the buyer. This is done by sending a cheque for the amount required to redeem the property, along with the engrossment of the Form DS1 asking him to discharge the mortgage and send the receipt at the earliest. When the property in question is an unregistered land, the lender completes the receipt clause on the reverse of the mortgage deed and forwards this receipted deed to the seller’s conveyancing solicitor rather than sending the Form DS1. If a life policy was taken as a collateral security in an endowment mortgage, the benefits of the same should be transferred to the seller. And if the lender has insured the property, the same should be cancelled. After receiving the completed DS1 form or the receipted deed (as the case may be), the solicitor should check if the details are correct and then send the same to the buyer’s solicitor and request the undertaking to be discharged.
Sometimes eDS1 or ED system is used to save time and work spent on notification of discharge. Thus, Form DS1 need not be used.
Send bill to the client
The next step is to prepare and send a bill of costs to the client. Money that is held by the solicitor on behalf of his client should be transferred to the office account provided that the client has agreed to this being done.
Letter to the client
The next step is to send a letter to the client reminding him about informing the water undertaker and local authorities about the change of ownership and to cancel insurance covers if any on the property. Sometimes the client is also informed about his obligations towards the CGT.
Custody of deeds
The deeds and its custody should be dealt with according to the client’s instructions. When the sale is of the entire land, the original deeds shall pass to the buyer’s conveyancing solicitor, but when the sale is of a part of land, the seller retains the deeds or may retain documents as an original grant of representation or power of attorney.
Check files for outstanding matters
The conveyancer need to check if all outstanding issues have been cleared before the file is sent for storage.
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