RE8/9
Completion
Procedure:
Pre-completion steps checklist
The art of due diligence is to understand your client’s objectives and to ensure that the legal due diligence
exercise concentrates on the issues that are important.
Buyer’s checklist
Deal with the transfer Draft the Transfer Deed (TR1). Send this to the seller’s solicitor for approval.
Send Request for Completion Information to the seller.
If the Transfer is approved and the Request for Completion contains satisfactory
answers, the buyer will:
o Engross the Transfer (i.e. prepare a final version will be prepared for signature
by both sides)
o Arrange for execution of mortgage deed, transfer deed and plan
When the Transfer has been executed, the buyer’s solicitor will send this to the
seller’s solicitor so that he can get his client to execute it prior to completion.
Make pre-completion The buyer’s solicitor will need to make necessary pre-completion searches (OS1;
searches Company Search etc.)
Check the results are satisfactory.
Arrange for a final inspection of the property if required.
Ensure are in funds Make a Report on Title to the Lender
o The buyer’s solicitor will need to make a report on title to the lender, and
request a mortgage advance in time for completion.
Check the Completion Statement
o We should check the completion statement received from the seller with
the Request for Completion to ensure the correct sum is due.
1
,RE8/9
Prepare a Statement of Account and Bill of Costs
o Send this to the client together with a copy of the completion statement,
requesting the balance due be paid in sufficient time for funds to be cleared
before completion.
When funds are received from the mortgage advance from lender/client, ensure
these are paid into the Client Account ready to be transmitted on completion.
Prepare the undertaking We will need an undertaking from the seller’s solicitor on completion, and therefore
we should draft this in advance
Prepare and agree the form of wording of any undertaking which needs to be given
or received on completion (eg, in relation to the discharge of the seller’s mortgage).
Remind client of arrangements for completion
Practical steps
Contact lender to confirm final arrangements for completion.
Arrange for final inspection of property by lender’s valuer if necessary.
Ensure that any life policy required by the lender has been obtained and check with
client that any other insurances required for the property (eg, house contents
insurance) have been taken out.
Check the file to ensure there are no outstanding queries
Check with the seller that arrangements for vacant possession and handing over of
keys.
If completion is to be by post, instruct the seller to act as agent on completion.
Contact the bank to arrange transmission of funds to the seller on the day of
completion.
Ensure SDLT 1 and 4 are completed by the buyer before completion so that Stamp
Duty can be paid after completion.
Ensure estate agents are aware of completion arrangements.
Prepare checklist of matters to be dealt with on actual completion.
Seller’s checklist
Deal with the transfer Check transfer deed has been approved
Approve the Transfer
Reply to the buyer’s request for completion information.
Receive engrossed Transfer from the buyer’s solicitor. Check the buyer has executed
this.
Get the seller to sign (and witness) the Transfer prior to completion.
Prepare two copies of schedule of deeds to be handed to buyer on completion.
Locate deeds and documents which will need to be inspected or handed over on
completion and prepare certified copies for the buyer of those documents which are
not being handed to the buyer on completion.
2
,RE8/9
Deal with mortgage Obtain redemption figures from the lender so you know how much is needed to
redeem the mortgage.
Obtain last receipts, etc (e.g., rent receipts for leasehold property) where
apportionments are to be made on completion
Contact the lender to confirm what the final arrangements are for discharge of the
seller’s mortgage
Prepare a completion Send to the buyer’s solicitor in time for completion so the buyer knows how much they
statement owe.
Prepare any undertaking that needs to be given on actual completion (e.g discharge of seller’s mortgage if also
acting for the lender
Remind client to organise final readings of meters at the property.
Practical steps
Check the file to ensure all outstanding queries have been dealt with.
Check arrangements for vacant possession and handing over of the keys.
Receive instructions form the buyer’s solicitor to act as his agent on completion if
completion will be by post.
Arrange time and place of completion with buyer’s solicitor.
Inform estate agents of completion arrangements
Remind buyer to organise final meter reading at the property
Prepare checklist of matters to be dealt with on actual completion.
Prepare inventory of and receipt for money payable for chattels.
Prepare a bill for the client
Pre-completion searches
It is necessary for the buyer’s solicitor to make a number of pre-completion searches to ensure:
There are no further interests or incumbrances present on the land since title was investigated.
To check the solvency of the buyer and ensure they are able to sell the property
To confirm that pre-exchange information obtained about the property remains correct
Should be made around 7 days before contractual completion date may be left closer to the
date if e.g., a telephone/electronic search is to be made
Search What is this and why is this done? When should you do this?
Ascertains from the Land Registry whether any Always carry out.
OS1** further entries have been made on the
register of title since the date of the Official
3
, RE8/9
Copies used to investigate title e.g., additional Make prior to exchange of contracts
Priority charge, notice or restriction, change in Repeat searches prior to completion if:
search ownership
Gives the applicant priority – freezes the o there is to be a period of 2 months or
register and prevents anything being more between exchange of contracts
(Land registered against the title except by the and completion, and the search has not
Registry) applicant (i.e. the lender of the purchaser) been covered by insurance or replaced
by insurance; or
The buyer will send an OS1 form to the land
o information received by the buyer’s
registry, and will receive back an Official
solicitor suggests a further search may
Certificate of Search that will show any entries
be advisable in order to guard against a
made since the date specified in the OS1.
recently entered adverse entry on the
register; or
Form OS2 if transaction concerns part of
registered title will need to submit a plan o the contract was conditional on the
alongside showing land concerned in satisfactory results of later searches.
transaction
Advise clients of further entries
understand position they will be in once
Search result will reveal any fresh entries
purchase completed
made on the register since a stated date
(usually date of the official copy entries given o But buyer client NOT entitled to raise
to the buyer; must be no earlier than 12 requisition about entry/refuse to
months before the date of the search complete unless contract made
application) conditional on satisfactory search results
Gives buyer priority period of 30 working
days from the date of the certificate
Searcher will take priority over any entry
made during the priority period, provided
that completion takes place and a correct
application for registration of the transaction
is received by the appropriate Land Registry
Office by 12 noon on the day when the
priority period expires.
CANNOT EXTEND PRIORITY PERIOD
Provides buyer protection (and lender if
search made on their behalf) against
subsequent entries which may be placed on
the register after the date of the search but
before the buyer is registered as proprietor
Buyer will take free from any additional
entries made on Title provided that they
submits their application for registration
before the end of the priority period.
Checks that a corporate seller remains When the seller is a corporate seller.
Company solvent. As close to completion as possible to ensure
Search** Can also make telephone search at Registry of the details are accurate at completion.
Winding Up Petitions at the Companies Court
on day of completion
o If transaction is of high value/there is
reason to be concerned about
4
Completion
Procedure:
Pre-completion steps checklist
The art of due diligence is to understand your client’s objectives and to ensure that the legal due diligence
exercise concentrates on the issues that are important.
Buyer’s checklist
Deal with the transfer Draft the Transfer Deed (TR1). Send this to the seller’s solicitor for approval.
Send Request for Completion Information to the seller.
If the Transfer is approved and the Request for Completion contains satisfactory
answers, the buyer will:
o Engross the Transfer (i.e. prepare a final version will be prepared for signature
by both sides)
o Arrange for execution of mortgage deed, transfer deed and plan
When the Transfer has been executed, the buyer’s solicitor will send this to the
seller’s solicitor so that he can get his client to execute it prior to completion.
Make pre-completion The buyer’s solicitor will need to make necessary pre-completion searches (OS1;
searches Company Search etc.)
Check the results are satisfactory.
Arrange for a final inspection of the property if required.
Ensure are in funds Make a Report on Title to the Lender
o The buyer’s solicitor will need to make a report on title to the lender, and
request a mortgage advance in time for completion.
Check the Completion Statement
o We should check the completion statement received from the seller with
the Request for Completion to ensure the correct sum is due.
1
,RE8/9
Prepare a Statement of Account and Bill of Costs
o Send this to the client together with a copy of the completion statement,
requesting the balance due be paid in sufficient time for funds to be cleared
before completion.
When funds are received from the mortgage advance from lender/client, ensure
these are paid into the Client Account ready to be transmitted on completion.
Prepare the undertaking We will need an undertaking from the seller’s solicitor on completion, and therefore
we should draft this in advance
Prepare and agree the form of wording of any undertaking which needs to be given
or received on completion (eg, in relation to the discharge of the seller’s mortgage).
Remind client of arrangements for completion
Practical steps
Contact lender to confirm final arrangements for completion.
Arrange for final inspection of property by lender’s valuer if necessary.
Ensure that any life policy required by the lender has been obtained and check with
client that any other insurances required for the property (eg, house contents
insurance) have been taken out.
Check the file to ensure there are no outstanding queries
Check with the seller that arrangements for vacant possession and handing over of
keys.
If completion is to be by post, instruct the seller to act as agent on completion.
Contact the bank to arrange transmission of funds to the seller on the day of
completion.
Ensure SDLT 1 and 4 are completed by the buyer before completion so that Stamp
Duty can be paid after completion.
Ensure estate agents are aware of completion arrangements.
Prepare checklist of matters to be dealt with on actual completion.
Seller’s checklist
Deal with the transfer Check transfer deed has been approved
Approve the Transfer
Reply to the buyer’s request for completion information.
Receive engrossed Transfer from the buyer’s solicitor. Check the buyer has executed
this.
Get the seller to sign (and witness) the Transfer prior to completion.
Prepare two copies of schedule of deeds to be handed to buyer on completion.
Locate deeds and documents which will need to be inspected or handed over on
completion and prepare certified copies for the buyer of those documents which are
not being handed to the buyer on completion.
2
,RE8/9
Deal with mortgage Obtain redemption figures from the lender so you know how much is needed to
redeem the mortgage.
Obtain last receipts, etc (e.g., rent receipts for leasehold property) where
apportionments are to be made on completion
Contact the lender to confirm what the final arrangements are for discharge of the
seller’s mortgage
Prepare a completion Send to the buyer’s solicitor in time for completion so the buyer knows how much they
statement owe.
Prepare any undertaking that needs to be given on actual completion (e.g discharge of seller’s mortgage if also
acting for the lender
Remind client to organise final readings of meters at the property.
Practical steps
Check the file to ensure all outstanding queries have been dealt with.
Check arrangements for vacant possession and handing over of the keys.
Receive instructions form the buyer’s solicitor to act as his agent on completion if
completion will be by post.
Arrange time and place of completion with buyer’s solicitor.
Inform estate agents of completion arrangements
Remind buyer to organise final meter reading at the property
Prepare checklist of matters to be dealt with on actual completion.
Prepare inventory of and receipt for money payable for chattels.
Prepare a bill for the client
Pre-completion searches
It is necessary for the buyer’s solicitor to make a number of pre-completion searches to ensure:
There are no further interests or incumbrances present on the land since title was investigated.
To check the solvency of the buyer and ensure they are able to sell the property
To confirm that pre-exchange information obtained about the property remains correct
Should be made around 7 days before contractual completion date may be left closer to the
date if e.g., a telephone/electronic search is to be made
Search What is this and why is this done? When should you do this?
Ascertains from the Land Registry whether any Always carry out.
OS1** further entries have been made on the
register of title since the date of the Official
3
, RE8/9
Copies used to investigate title e.g., additional Make prior to exchange of contracts
Priority charge, notice or restriction, change in Repeat searches prior to completion if:
search ownership
Gives the applicant priority – freezes the o there is to be a period of 2 months or
register and prevents anything being more between exchange of contracts
(Land registered against the title except by the and completion, and the search has not
Registry) applicant (i.e. the lender of the purchaser) been covered by insurance or replaced
by insurance; or
The buyer will send an OS1 form to the land
o information received by the buyer’s
registry, and will receive back an Official
solicitor suggests a further search may
Certificate of Search that will show any entries
be advisable in order to guard against a
made since the date specified in the OS1.
recently entered adverse entry on the
register; or
Form OS2 if transaction concerns part of
registered title will need to submit a plan o the contract was conditional on the
alongside showing land concerned in satisfactory results of later searches.
transaction
Advise clients of further entries
understand position they will be in once
Search result will reveal any fresh entries
purchase completed
made on the register since a stated date
(usually date of the official copy entries given o But buyer client NOT entitled to raise
to the buyer; must be no earlier than 12 requisition about entry/refuse to
months before the date of the search complete unless contract made
application) conditional on satisfactory search results
Gives buyer priority period of 30 working
days from the date of the certificate
Searcher will take priority over any entry
made during the priority period, provided
that completion takes place and a correct
application for registration of the transaction
is received by the appropriate Land Registry
Office by 12 noon on the day when the
priority period expires.
CANNOT EXTEND PRIORITY PERIOD
Provides buyer protection (and lender if
search made on their behalf) against
subsequent entries which may be placed on
the register after the date of the search but
before the buyer is registered as proprietor
Buyer will take free from any additional
entries made on Title provided that they
submits their application for registration
before the end of the priority period.
Checks that a corporate seller remains When the seller is a corporate seller.
Company solvent. As close to completion as possible to ensure
Search** Can also make telephone search at Registry of the details are accurate at completion.
Winding Up Petitions at the Companies Court
on day of completion
o If transaction is of high value/there is
reason to be concerned about
4
