Conveyance procedure: Sale and Purchase of Freehold

NOTE Seller markets the property hoping to find a buyer (estate agents are common). Seller is required to obtain an Energy Performance Certificate (EPC) (Energy Performance of Buildings Regulations 2012(si 2012/3118))	An example of an attendance note recording instructions from a client which follow a check list is found in PLP book page 94-95			NOTE
	SELLER	BOTH	BUYER	NOTE
Solicitors receive instructions which are usually confirmed by writing, together with written info relation to the solicitor’s costs (Confirm Client ID/M Laundering/Mortgage fraud/Confidentiality): Personal interviews If Estate agent ask solicitor to act on behalf of C, confirm with C If 2 or more co-sellers confirm instructions with all (Penn v Bristol and West Building Society and Others (1995)) Acting for both parties (See Confidentiality Chart)		Take instructions		Solicitors receive instructions which are usually confirmed by writing, together with written info relation to the solicitor’s costs (Confirm Client ID M Laundering/Mortgage fraud/confidentiality): Personal interviews If Estate agent ask solicitor to act on behalf of C, confirm with C If 2 or more co-buyers confirm instructions with all (Penn v Bristol and West Building Society and Others (1995)) Acting for both parties (See Confidentiality Chart)
Pre-contract package includes: Draft contract, showing what land is being sold and on what terms it is being sold; “Deduction of title”= Evidence of seller’s legal title to the property, to prove he owns and is entitled to sell the land; and Sometimes, the results of pre-contract searches which the seller has made and other information about the property May contain other info e.g. local authority planning permissions	Prepare pre-contract package (draft contract, evidence of title etc.)	Pre-contract Stage Buyer or seller may change their mind and withdraw from transaction at any point during the pre-contract stage. Once contracts are exchanged a binding contract comes into existence.	Investigate tittle	Buyer’s solicitors must check documents of title and ensure that seller is entitled to sell and that there are no encumbrances (e.g. restrictive covenants) which may prevent the buyer from using the property as he intends to. Check that terms of draft contract accord with instructions by buyer. Check proof of the seller’s ownership of land “title”. Any queries about the title made to the seller’s solicitors are called “requisitions”. Requisitions require seller to resolve problems in seller’s ownership or title. Identify defects in title. If also acting for lender prepare report on title 4 them.
			Commission survey	Buyer must find out as much as they can (about boundaries, access, works, disputes, outgoings) as due to the Caveat Emptor principle.
Seller is not obliged to answer questions about the property but is encouraged to do so in order to facilitate the sale. Incorrect responses may account for misrepresentation.			Raise pre-contract searches and enquiries	Solicitor must carry out pre-contract searches of various statutory private and public bodies (eg local authorities) to help buyer build up a whole picture of the property. This research may reveal financial charges over the property, proposals for changes in the surrounding area, status of previous planning permissions, potential contamination, potential for flood, utilities services (lines, pipes etc). Check buyer’s finances: does he have enough, for deposits, fees and SDLT?
			Raise pre-contract searches and enquiries
			Approve draft contract	Return the contract to Ssol State that you approve it 2 final copies are prepared Agreed method of exchange of contract is carried out. Buyer should be satisfied with the title and the draft contract. “Telephonic exchange”* may be seen as the moment when exchange of contracts arises.
	When exchange of contracts is made, a binding contract comes into existence	Exchange contracts	When exchange of contracts is made, a binding contract comes into existence	Buyer usually pays a 10% deposit (+ or -) of purchase price, but it also depends on what the parties agree. A party may forfeit the deposit for gazumping or gazundering.
		Post-contract or Pre-completion Stage	Prepare transfer deed	BSol’s sends the draft transfer deed to seller’s solicitor for approval (terms of contract and further requisitions as to terms of Co). Transfer deeds need to be complete and executed as these docs will serve to transfer legal title.
SSol’s approve or correc the draft transfer deed	Approve transfer deed
			Obtain money for purchase	If buyer intends to use a Mortgage to buy the property the BSol’s prepare work for the buyer’s lender in connection with loan and title of property (SRA O3.5 would apply but allowed in residl trans. See PLP Conduct note)
			Perform pre-completion...

#10275 - Sale And Purchase Of Freehold Ws 1 Conveyancing Procedure - Property Law and Practice

About Oxbridge

More Property Law And Practice Samples