#16686 - Completion - Property Law and Practice

COMPLETION

What method: form TA13 Enq.3

Law Society’s Code for Completion by Post

Seller’s Solicitor		Buyer’s Solicitor
		0S1- the 0S1R begins the priority period
Acts as agent for the buyer’s solicitor Holds the money transferred from the buyer until completion occurs. Kept in line by undertakings. NB: Professional conduct point.
		Transfers to the seller’s solicitor ready for completion [SC 6.7/SCPC 9.7] usually by TT [TA13 - Enq. 4.2 asks for S’s solicitor’s bank details]
COMPLETION: Legal title does NOT pass
Advise seller and buyer’s solicitor that completion has occurred
Comply with undertakings in accordance with Code:	Send completed TR1 (executed by S) to buyer’s solicitor (+ original title deeds/copies of PP etc.)
	Discharge existing mortgage
	Provide DS1 as evidence of mortgage discharge*	Upon proof that seller’s solicitor has discharged the existing mortgage (DS1), formally release seller’s solicitor from the undertaking
		Comply with SDLT requirements:	Complete & submit SDLT1 Form to HMRC within 30 days (even if no SDLT payable)**
		Comply with SDLT requirements:	Receive SDLT5 certificate
		Register transaction at HMLR using AP1 and send in SDLT5 within 30 working days of 0S1R result. Applications must be in priority order.		Cancel existing charge
				Remove restriction
				Register proprietor
				Register legal charge
				Register new incumbrances (if any – [AN1/UN1]***)
				Register restriction (on behalf of mortgagor) RX1
REGISTRATION: Legal title PASSES

* There are two systems:

1. ED: Electronic communication sent by Lender directly to Land Registry confirming discharge of mortgage. The charge is cancelled by Land Registry upon receipt of registration application from the buyer’s solicitor

2. e-DS1: Electronic discharge submitted by Lender via Land Registry portal service

In either case: revised undertaking required to confirm that you are using electronic [TB Paras 30.7.1.10 & 31.3.5]

**There are paper and online versions – If paper, buyer must sign personally

***AN1 – agreed notice registration, UN1 – unilateral notice registration

What docs should you receive from the Seller on completion?

Mandatory:	Circumstantial:
Completed TR1 (executed by Seller & dated) Form DS1 [completed by Bank] Cert. from bank (to confirm agreement to removal of Restriction in Proprietorship Register)	Letter of non-crystallisation from bank (re. floating charge) The restrictive covenant insurance policy Original Building Regs Final Certificate Original planning permissions Any other misc. docs relating to the property.

	Action	Time Limit	Penalties/Consequences
SDLT	Submit Form SDLT1 to HMRC with payment	Within 30 days of completion	Fine + Interest B & lender cannot be registered [Land Registry needs Form SDLT5]
Registration	Register new Proprietor [& new Charge if Mortgage] using Form AP1	Registered Land: Within ‘Priority Period’ [PP] of OSR1 [i.e. within 30 working days of search result	B & Lender will lose protection of PP B will not get legal title Lender will not get legal charge

SDLT

Submit Form SDLT1 to HMRC with payment

Within 30 days of completion

Fine + Interest
B & lender cannot be registered [Land Registry needs Form SDLT5]

Registration

Registered Land:

Within ‘Priority Period’ [PP] of OSR1

[i.e. within 30 working days of search result

B & Lender will lose protection of PP
B will not get legal title
Lender will not get legal charge

#16686 - Completion - Property Law and Practice

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