#10274 - Completion - Property Law and Practice

Time

P284

• If it is not completed by 2pm on the completion date then completion is treated as having taken place on the next working day (SCPC 8.1.2) and compensation for delay is likely under (SCPC 9.3)

• By a direct transfer of cleared funds and an unconditional release of a deposit held as stakeholder (SCPC 8.7)

• B phones S to arrange the appointment

• All the documents are executed prior to completion and held by S

• B attends S’s office and takes with him:

  • Contract & evidence of title

  • Transfer deed

  • Completion checklist and statement saying how much is needed to complete

  • Documents (e.g. release of deposit, surrender of tenants, insurance policy, etc.)

• B to check the title documents and evidence of title previously sent

• B to arrange money to be sent electronically (SCPC 8.7)

• S undertakes to discharge the old mortgage (wording of undertaking P289)

• S hands over title and relevant documents

• New mortgage is put in place

• Solicitors report to their clients

• Use Law Society’s Code for Completion by Post

• B sends written instructions and necessary documents (see In Person) to S (who acts as B’s agent – at no cost)

• B sends the funds to S by direct transfer

• Once S receives the money, they will carry out B’s instructions as requested

• S then phones B to confirm completion and sends on all the documents on to him by 1^st class post or document exchange

• Any Undertakings must be honoured and any obligations accepted must be fulfilled.

• Once performed the undertaker asks the recipient to release him from his undertaking. Release is made by letter, or by returning the original undertaking. Evidence should be kept in file.

• The time limits, and the effect of non-compliance with them, differ according to whether it is a first registration of land previously unregistered or whether it is registered land.

T&F NOTE In a transaction which incorporated the SCPC, if the seller breaches a provision of the contract, the buyer is entitled to sue the seller for the breach after completion has taken place. On completion, the terms of a contract are said to merge with the purchase deed. A claim on a contract is therefore no longer sustainable after completion unless the terms of the contract are still alive or have been kept alive by virtue of a "non-merger" clause in the contract. SCPC 9.4 states that: "Completion does not cancel any liability to perform any outstanding obligation under the contract." This is a type of non-merger clause.