#16678 - Conveyancing Forms - Property Law and Practice

Results of OS1 Search

• Get OS1R back and have 30 working days from then to be protected from adverse registrations

• The Buyer must:

1. Complete

2. Pay SDLT

3. Apply to register

• Priority Period [PP] acts as a ‘shield’ over the land to prevent others from registering interests over the land.

• Although B’s solicitor can renew OS1 search, if another party had submitted an adverse registration during the PP of the previous OS1 search, this now takes priority over new search.

• Post-exchange requisitions barred [SC 4.2.1/ SCPC 7.2.1]

  • BUT: S can only rely on bar if he has disclosed and acts in good faith –
    can’t be relied on if in breach

• If a new incumbrance comes up post-exchange, bar doesn’t apply [SC 4.2.2/ SCPC 7.2.2] – S should have disclosed, so is in breach of SC 3.1/ SCPC 4.1

  • In these circumstances, B & S must follow set timetable [SC 4.3.1/ SCPC 7.3.1]

The Transfer of WHOLE of Registered Title

Panels 4 & 5

• Transferor = seller, Transferee = buyer

• Include Co. registered no. here if applicable

• Do NOT include addresses here

Panel 6

• Address to which Buyer will want docs sent in the future

Panel 8

• Price of land only (not contents)

• If VAT is payable, include in this figure

Panel 11

• Consider standard conditions/any additional special conditions on back page of Contract that need to be included here

• E.g. personal indemnity covenant (P-i-C) from Transferee (Buyer)

  • In Contract: SC 4.6.4/SCPC 7.6.5: “If after completion, S remains bound by obligation affecting property … B to covenant in Transfer to indemnify S against liability for future breach of obligation & to observe and perform it …”

  • SC 4.6.4/SCPC 7.6.5: P-i-C implied into Contract BUT must expressly include P-i-C in Transfer

• New Restriction (other than TiC): needing consent of lender

• New incumbrance

• “The Transferee covenants with the Transferor that it will observe and perform the covenants referred to in Entries [ ] of the [ ] Register of Title number [ ] as at [date] and to indemnify the Transferor against any liability for their future breach or non-observance.”

Panel 12

• Seller(s) ALWAYS sign

• Buyer(s) sign ONLY if:

  • B is entering into a P-i-C

  • B is applying for a restriction

  • B is entering into a new incumbrance or

  • 2+ Buyers (as will be making a decl. of trust)

• A document must be executed correctly to comply with the formalities for a deed.

• For individual: signed, witnessed and delivered as a deed

• For company: 3 options

1. Executed as a deed by affixing the common seal of (name of co.) in the presence of: [two members of the board of directors or a director and the secretary]

2. Executed as a deed by (name of co.) acting by [a director and secretary] or [two directors]

3. For documents executed on or after 6 April 2008 only, Executed as a deed by (name of company) acting by [director] in the presence of [witness]

Application to change the Register [see WS9 d4]

• Send Form AP1 to register

  • New proprietor(s)

  • New charge (if mortgage)

  • Applications must be in order of priority

• Priority Order of Applications

1. Discharge existing mortgage(s)

2. Remove existing Restriction(s) (Form RX3)

3. Register new Proprietor(s)

4. Register new mortgage(s) [in correct order!]

5. Register new incumbrances (if any) (Form AN1/ UN1)

6. Register new Restriction(s) (Form RX1)

Bankruptcy search

• ONLY if B is an individual (if B is a company, then do company search)

• If B is buying with the aid of a mortgage, check that B is solvent