Taking Instructions
Interests of the parties Further info required Conduct (incl mortgage fraud)
Title Investigation
Inspect Official Copies Requisitions on title CLLS Certificate of Title
Different entries on the Go through each entry Summary of all the important info from
different registers in the on official copy and your investigation
official copies IDEA decide what questions This will be all that the lender sees so has
to ask to be accurate
Forms part of the due diligence
Schedule 2 - Property Details
(Property, Benefits, Encumbrances, Existing
Use)
Sch. 3 - Matters affecting the Property
(see WS5 consolidation)
Sch. 6 - Searches
Searches and Enquiries
Caveat emptor
Routine Searches Additional Searches Location Specific Searches
LLC1 Chancel Repair Search Mining Search
Con29 Index Map Search Common Land; Town &
Con29O Company Search Village Greens
CPSE Flood Search Canal & River Trust Search
Water & Drainage Enquiries Railways Search
Environmental Search Highways Search
Personal inspection
What do the results tell you?
What further actions are required/what else will you need to know?
Bear in mind:
Planning permission
Conditions attached to Planning Permission
Building Regulation Consent,
Roads and drains adopted, or agreement and bonds exist,
If roads aren’t adopted, check adequate easements for access (title documents or implied/presumed
by long user)
, Contract
Sets up the deal (don’t strictly need this) - transfer puts it into force
Seller drafts it and send to buyer as part of pre-contract package
Go through each clause and pick Special Conditions
out anything that’s a problem for Need them to deal with the particular circumstances of the transaction
your client/unnecessary (e.g. purchase price) & to vary the standard condition position (e.g. deposit
In particular… held as agent) - SEE CONTRACT back of WS7
Contract rate (SCPC 1.1.1(e)): Law Where a contract incorporates SCPC’s but then a special condition is
added which contradicts the standard condition - SCPC 1.1.4(a) provides
Society’s interest rate is 4% above
that the Special will prevail…Need Specials on:
Barclays, anything above this is
VAT: Standard Position SCPC 2.1/2.2 - will charge VAT.
unacceptable Part 2 Option A1 - won’t charge unless A1.3 applies & law changes
- Silent = LS interest rate ‘Inclusive of VAT’ better for B, will never be able to charge more.
Deposit: Stakeholder unless chain Deposit: SCPC 3.2 provides 10% deposit held as stakeholder, and paid by
transaction ((residential only) electronic means (in contravention to Formula B)
- 10% of purchase price If property sold at auction, deposit is held as agent for seller SCPC 3.3.6
VAT: If no charge - purchase price Incumbrances: SCPC 4.1.1 - S will sell the property free from incumbrances
needs to be ‘inclusive’ and need other than those listed in SCPC 4.1.2 (SCPC 4.1.2(a) makes the sale subject
to add clause stating Part 2 of the to incumbrances ‘specified in the contract’)
SCPC is now incorporated A1 - Matters covered by SCPC 4.1.2(b)-(e) & ∴ deemed to be disclosed if SCPC’s
VAT not a taxable supply used) are: (b) Matters discoverable by inspection (e.g. clear right of way)
(c) Matters the seller doesn’t & couldn’t reasonably know about (d)
Title Guarantee: Want a full title
Matters, other than mortgages, disclosed by searches and enquiries a
guarantee unless we’re dealing prudent buyer would have made, (e) Public requirements
with T’s/executors etc Will put in a Special listing incumbrances (or any defects in title) anyway -
- Free from incumbrances Nothing specific, just “[covenant] in entry [2] of the [charges] register”
Matters Affecting the Property: Title Guarantee: Where contract makes no reference, SCPC 7.6.2 - full title
Make sure the mortgage isn’t guarantee (implied cov’s are implied into transfer and not contract)
included here - have to specify Indemnity Covenants: SPCP 7.6.5 says the seller is entitled to one, but will
the entries other than the one probably want specific wording so need a Special
that includes the mortgage charge Insurance: Need a Special if the seller is going to provide any insurance
Completion: Standard is 2pm. Is (e.g. restrictive cov indemnity insurance if already in breach)
there a reason for this to be Restrictions: Need a Special e.g. where appointing second trustee for
tenants in common (no title guarantee from them)
earlier? If not, leave it as 2pm as
Vacant Possession: Need a Special to specify whether sold with vacant
time is not of the essence possession or subject to occupational leases
Joint & Several Liability: If only 1 Date/Time for Completion: Left blank until exchange. If nothing inserted
buyer, delete this on exchange SCPC 9.1.1 sets completion at 20 working days after the date
of the contract but time is not of the essence unless notice to complete.
Check the parties, addresses, SCPC 9.1.2 states if completion monies received after 2pm, then for
compensation, completion is deemed to have occurred on the next
working day (2pm can be changed by Special). Under SCPC’s, only S gets
Drafting additional compensation if B defaulted and completion delayed. B has no contractual
clauses: right to compensation if S defaults
Who? What? For
whom? When?
How? Where?
“The seller has to Final Steps Before Exchange
provide… to the Report on Title to client, highlight any outstanding issues
buyer, on or Report to the lender
before completion Ensure deposit funds are available (needs to be cleared funds)
Is all funding in place? Proper mortgage offer? Redemption statement?
Make sure there’s insurance provision in place from exchange
Has our client signed the contract?
Completion date put in on exchange, do we know what has been agreed?
Interests of the parties Further info required Conduct (incl mortgage fraud)
Title Investigation
Inspect Official Copies Requisitions on title CLLS Certificate of Title
Different entries on the Go through each entry Summary of all the important info from
different registers in the on official copy and your investigation
official copies IDEA decide what questions This will be all that the lender sees so has
to ask to be accurate
Forms part of the due diligence
Schedule 2 - Property Details
(Property, Benefits, Encumbrances, Existing
Use)
Sch. 3 - Matters affecting the Property
(see WS5 consolidation)
Sch. 6 - Searches
Searches and Enquiries
Caveat emptor
Routine Searches Additional Searches Location Specific Searches
LLC1 Chancel Repair Search Mining Search
Con29 Index Map Search Common Land; Town &
Con29O Company Search Village Greens
CPSE Flood Search Canal & River Trust Search
Water & Drainage Enquiries Railways Search
Environmental Search Highways Search
Personal inspection
What do the results tell you?
What further actions are required/what else will you need to know?
Bear in mind:
Planning permission
Conditions attached to Planning Permission
Building Regulation Consent,
Roads and drains adopted, or agreement and bonds exist,
If roads aren’t adopted, check adequate easements for access (title documents or implied/presumed
by long user)
, Contract
Sets up the deal (don’t strictly need this) - transfer puts it into force
Seller drafts it and send to buyer as part of pre-contract package
Go through each clause and pick Special Conditions
out anything that’s a problem for Need them to deal with the particular circumstances of the transaction
your client/unnecessary (e.g. purchase price) & to vary the standard condition position (e.g. deposit
In particular… held as agent) - SEE CONTRACT back of WS7
Contract rate (SCPC 1.1.1(e)): Law Where a contract incorporates SCPC’s but then a special condition is
added which contradicts the standard condition - SCPC 1.1.4(a) provides
Society’s interest rate is 4% above
that the Special will prevail…Need Specials on:
Barclays, anything above this is
VAT: Standard Position SCPC 2.1/2.2 - will charge VAT.
unacceptable Part 2 Option A1 - won’t charge unless A1.3 applies & law changes
- Silent = LS interest rate ‘Inclusive of VAT’ better for B, will never be able to charge more.
Deposit: Stakeholder unless chain Deposit: SCPC 3.2 provides 10% deposit held as stakeholder, and paid by
transaction ((residential only) electronic means (in contravention to Formula B)
- 10% of purchase price If property sold at auction, deposit is held as agent for seller SCPC 3.3.6
VAT: If no charge - purchase price Incumbrances: SCPC 4.1.1 - S will sell the property free from incumbrances
needs to be ‘inclusive’ and need other than those listed in SCPC 4.1.2 (SCPC 4.1.2(a) makes the sale subject
to add clause stating Part 2 of the to incumbrances ‘specified in the contract’)
SCPC is now incorporated A1 - Matters covered by SCPC 4.1.2(b)-(e) & ∴ deemed to be disclosed if SCPC’s
VAT not a taxable supply used) are: (b) Matters discoverable by inspection (e.g. clear right of way)
(c) Matters the seller doesn’t & couldn’t reasonably know about (d)
Title Guarantee: Want a full title
Matters, other than mortgages, disclosed by searches and enquiries a
guarantee unless we’re dealing prudent buyer would have made, (e) Public requirements
with T’s/executors etc Will put in a Special listing incumbrances (or any defects in title) anyway -
- Free from incumbrances Nothing specific, just “[covenant] in entry [2] of the [charges] register”
Matters Affecting the Property: Title Guarantee: Where contract makes no reference, SCPC 7.6.2 - full title
Make sure the mortgage isn’t guarantee (implied cov’s are implied into transfer and not contract)
included here - have to specify Indemnity Covenants: SPCP 7.6.5 says the seller is entitled to one, but will
the entries other than the one probably want specific wording so need a Special
that includes the mortgage charge Insurance: Need a Special if the seller is going to provide any insurance
Completion: Standard is 2pm. Is (e.g. restrictive cov indemnity insurance if already in breach)
there a reason for this to be Restrictions: Need a Special e.g. where appointing second trustee for
tenants in common (no title guarantee from them)
earlier? If not, leave it as 2pm as
Vacant Possession: Need a Special to specify whether sold with vacant
time is not of the essence possession or subject to occupational leases
Joint & Several Liability: If only 1 Date/Time for Completion: Left blank until exchange. If nothing inserted
buyer, delete this on exchange SCPC 9.1.1 sets completion at 20 working days after the date
of the contract but time is not of the essence unless notice to complete.
Check the parties, addresses, SCPC 9.1.2 states if completion monies received after 2pm, then for
compensation, completion is deemed to have occurred on the next
working day (2pm can be changed by Special). Under SCPC’s, only S gets
Drafting additional compensation if B defaulted and completion delayed. B has no contractual
clauses: right to compensation if S defaults
Who? What? For
whom? When?
How? Where?
“The seller has to Final Steps Before Exchange
provide… to the Report on Title to client, highlight any outstanding issues
buyer, on or Report to the lender
before completion Ensure deposit funds are available (needs to be cleared funds)
Is all funding in place? Proper mortgage offer? Redemption statement?
Make sure there’s insurance provision in place from exchange
Has our client signed the contract?
Completion date put in on exchange, do we know what has been agreed?
