#4873 - Residential Conveyancing - Property Law and Practice

Residential Conveyancing 1) Searches and enquiries * * * Uses a different standard form for enquiries: o A Property Information Form (PIF) for freehold o ALeasehold Information Form (LIF) for leasehold Rather than using the CPSEs for standard form enquiries The 'Protocol' Fittings and Contents Form is used to indicate which items the seller is leaving at the property and which will be taken 2) Drafting the contract * 3) Exchange of contracts Exchange of two contracts (no chain) 1) Exchange must happen simultaneously Exchange of multiple contracts (chain) What the solicitor must ensure Uses SCS (5th edition) rather than SCPC 1) Exchange must happen simultaneously 2) All transactions complete on the same day What the procedure is that will be followed - Formula C of Law Society's exchange formulas 1) B's solicitor telephones A's solicitor to stay they are ready to exchange and they go through the normal pre-exchange checks 2) However, they do no exchange. Instead A's solicitor "Releases" the contract until [5pm]. This means that a) although contracts have not been exchanged, B's solicitor can proceeds as if they have been b) A's solicitor has impliedly given an undertaken that they will exchange at [5pm] provided B's solicitor phones back at 5pm to exchange 3) B's solicitor can then phone C's solicitor and exchange. This means that: a) B's solicitor can be safe in the knowledge that, provided B's solicitor phones back A's solicitor to exchange by 5pm, A's solicitor must exchange b) If C had refused to exchange, B's solicitor would not be obliged to exchange contracts with A's solicitor 4) Third party intending to live in the property` In accordance with the CML Lender's Handbook 7.3 the solicitor should: * Ensure the third party signs a Deed of Waiver and Postponement so their rights in the property are postponed behind those of the lender * The solicitor should ensure that the mother obtains independent legal advice from another firm before signing the deed due to the potential conflict of interests