#14748 - Completion - Property Law and Practice

Completion

Pre-Completion Steps

The Buyer’s solicitor will draft the TR1 which will be agreed and signed by the seller. The Buyer’s solicitor will then submit the Completion Information & Undertakings Form to the seller’s solicitor which deals with issues such as keys, documents, the balance due and the release of mortgages. The seller’s solicitor will reply to this form within 4 working days (SCPC 6.3.1).

The buyer’s solicitor will ensure their client has obtained the finance to purchase the property and will send a draft certificate of title to the bank and confirm the bank will release the funds of the loan in time for completion. Meanwhile, the seller’s solicitor produces a completion statements and calculates the redemption figure which is required to discharge the mortgage.

Pre-Completion Searches

Two searches will be completed before completion will occur. The first is a Priority Search on an OS1. This will be completed to check there has been no changes to the official copies since the investigation of title. The search will be completed in the name of the lender.

There will also be a solvency search on the buyer completed. If the buyer is a company this will be done at Companies House; if the buyer is an individual this will be completed by a K16 Bankruptcy Search.

Completion

Procedure for completion:

Both parties confirm they are ready from completion and have instructions to complete;

The buyer’s solicitor send cleared funds and the seller solicitor confirms they have received them;

The seller’s solicitor sends the redemption monies to the bank to discharge the mortgage and the remaining monies to the seller;

The seller’s solicitor send the buyer’s solicitor the documents for the property and undertakes to send the DS1 to the buyer’s solicitor after the bank has discharged the mortgage.

Drafting the TR1

Issues with Completion

Delayed Completion

The latest time for completion is 2pm on the day of completion. If completion occurs after 2pm then it will...