next, we consider the process that occurs on exchange of contracts and completed. This is section for off unit 36. So, as they set out on the the bias listed should discuss certain matters with the client that would form part off the report to clients. Now, before exchange of contracts, we will need to discuss the holding of the deposit. So usually the convincer will insist on the deposit being provided in cleared funds. So that's usually by a bank transfer from the client so personal account into the firm's client account. Traditionally, the deposit waas 10% of the purchase price. It's not uncommon to have examples where the purchases I don't have a 10% deposit, so the amount of the deposit is, say 5%. Remember, all terms need to be agreed. So both seller and buyers on exchange of contracts will need to agree the amount of the deposit. The deposit could be held a stakeholder or is aged for sellers. So from the first time buyer buying from a vendor, the deposit is held to stakeholder, so at this stage it cannot be released after you've exchanged contracts to the cellar and it can't be returned to the buyer. I assume in making that statement that contracts have been exchanged with an agent off their celebrated for the seller deposit then that allows the whole or part of deposit to be used on, for example, related purchase. Four To be released to the cellar agent of the seller is not uncommon on new build purchases where the developed has the right to use the deposit for exchange of contracts. Age of the subtle deposit is also sometimes on a related purchase because in that situation, all you say is that you couldn't use it as a seller for a deposit on a related purchase. Andi, if you look at the study conditions of sale uh, conditions 2.2 point 52 pointed by six. Explain a little more about that process. Now you've got the deposit, but then you will also have the balance purchase monies, which will be the purchase price minus the deposit unusual. What will happen is the parties also have to agree who will hold the deposit so often it will bay if you have a long chain. The agreement is that maybe the bias conveying to the bottom of the chain. They will retain the deposit, and it will be agreed to be held to the order off the sellers convincer pending completion. That's often where you hear that phrase held to order. Then you've got the issue off exchange of contracts. So in the run up to exchange of contracts as apparent legal, it might well be that your file has to be signed off by a more experienced or qualified supervisor. But they're certain basic checks that you will be satisfied with. You will need to check report, Do you guy? He clients all the icy to exchange You've complied with any mortgage lenders conditions is satisfied with the title. So that's the case. You then move towards an exchange of contracts. Now the loss and standard conditions sale do make reference to an exchange of contracts through the post or exchange of contracts in person. So to that extent it doesn't reflect modern realities because modern realities you will do typically exchanges, which basically two procedures festival. There's the telephone exchange when the parties agree that there is a binding contract and then there's a physical exchange of contracts. But on exchange of contracts socio, for the sell of example, sends the part signed by their clients to the Bias Lister way. Sometimes talk about sellers and by assigned parts. These are two identical parts off the same contract, then mirror copies. But one is interning for signature by the by it the other one by the seller. So if there's no linked transaction in the sense off no related purchase, then you can often go to a simultaneous exchange of completion. Even so, it might well be the clients say, Well, let's go for Friday if the Property 70 lets us for the mortgage funds exchange on the day I'm and it's also referred to in the nose. If you're dealing with the telephonic exchange, if there's no chain, then both parties conveyances will have a signed contract in their possession. There'll be a conversation where the parties will just go through. Some of the basic terms agree the completion date. The amount of the deposit any special conditions agreed will need to be recorded in the contract is not enough for them to bay in an email between the party solicitors. I'm The basic idea is because of the 1989 act Section two that I meant and grievously its requirement. That way, you have to pass the contract than those parts have to be identical in all material respects. There's also the relevant formula. I'll make a brief that about formulas in just a moment, but Formula B is the most common place one. So at the point of exchange the party's confirmed we've exchanged. Often it's Formula Bay. People might set the date of the agreement because that's left undated until you have actually carried out the exchange and there may be right, the formula was used in the time of exchange on then. Often what is called physical exchange is that that's then followed up with exchange of contracts in the post. That is a clear no on the file regarding formulas A, B and C Formula A festival is where once list of holes both parts of the contract. So given example, two local solicitors know each other well. What sisters? A sole practitioner. He's gonna be away on holiday for extended weekend. So he says to the other, conveying. So I'll send my client signed contract. Can you let me know that the contract has been on formally exchange formula. Right now, I want to this list to do that, too, may in circumstances where they sent me a contract. Andi. He basically said, Let me know when you've exchanged formula right and I have looked at formula and I said to him, We still need to do the formula ray extremes over the telephone. It's just that I will be the Celester filling in the relevant bits on both parts of the contract formula A is rarely rarely used formula bees, the most common one. So I'm as from exchange of contracts, you are holding your clients part the contract to the order of the other convey answer. In essence, you haven't you given undertaking by using formula basis, there's no undertaking in there. That's the signed contract will be sent that day to the other side. Cup solicitor. Clearly, if you're exchanging late on the day, it might be that in practice, you just as much of Kirsty tell would convey. Answer that the A coal truck will be in the post the day later. The next stage of the unit 36 materials are to consider the subject off Examination of title traditionally the sellers title to her property was not investigated until after exchange of contracts. Andi. You'll also note that this particular subject is also tackled in this part off the materials. In practice, it is more common for title to be deduced. E. This is the proof of the seller's title, which is provided with the draft contract at a fairly early stage of proceedings and certainly prior to exchange of contracts. So remember, we mentioned that if we have a registered title that will on the consists off office copy entries on title plan Andi with another measure title that will sometimes be referred to as contract accompanied by an abstract or epitome off documentation, it's worth being aware that the Losses Scientist under conditions of sale, which are in their fifth edition, contains a specific provision in this is that the buyer may not raise requisitions on any title shown by the seller before the contract was made. So the basic idea of that is, as long as the seller has provided all necessary information on documentation relating to the seller's title, then the buyer cannot raise any further inquiry regarding that title. For example, if the sellers conveyance omitted to include on important conveyance that contained restrictive covenants and then, after exchange of contracts, was to say to the buyer. Hopes forgot to mention this. That would be a matter that the buyer would be able to raise enquiries about, however, from the cells conveyances less active. It will also be the case that the encumbrances in the contract will be defined. So let's just say that you have a registered conveyancing transaction. Andi. It's important in a most committed transaction that the cells conveyance deduces all relevant documents on this would include, for example, a old conveyance, which might contain restrictive covenants. But they have to be provided because those rejecting governance will be an encumbrance on the bias title. Andi. It's an important element off, referring to encumbrances on the front page off the draft contract in terms off the Salafist some, including to those in conferences and the buyer is buying subject to those. So by deducing title before exchange of contracts, the buyer is fully aware off the in conferences that they're going to sell subject to and getting back to the subject of entire examination of title. That is reference in the notes to know Mr Title. So when we look out on unregistered title, it is typically the case that the settlers commence. It will provide an abstract of title or epitome of title, so I don't propose to say a great deal about those two different concepts other than to say that they are defined in the note. So an abstract will be a summary of the contents of all the deeds relating to a property which start deduced by the cells conveyancing. We've already previously mentioned as well that we want to have all relevant deeds going back at least 15 years. So we do that because we need to show a good root of title. In other words, clear evidence from the deeds documents that the seller and any predecessor in title can demonstrate legal ownership of the property going back at least 15 years. Then, of course, we look for any other deeds which mine, for example, granted right of way or might impose restrictive covenant. Or it might be the right of way demonstrated government arm. In the original route of title I eat the document produced which evidences the 15 years of ownership and epitome of title will be the photocopies of the actual deeds, with a schedule of them onda up increasingly now, documents are no longer scanned, photocopied on, then sent in the DX that typically send by email. So use a cell's commander will provide typically, and the use of my commander will typically receive a scan version off a well. The documents at the other thing about due to title was mentioned in the notes is it should contain a clear description off the property. Sometimes this case, that example, if you have an old Victorian townhouse that there may be no plan attached to the relevant conveyance. So it's always a good idea that if there is a planet act that that is also provided. One thing to be aware off, which is beyond detailed consideration in this module is that the long registry have very stringent requirements regarding plans, a touch to documents which are submitted with registrations on first registration application. The buyers, convinced it will need to consider whether any plan provided by the seller's complains is both accurate UN compliant with the Long Ministry practice guides it referred to legal mortgages can be regarded as good weeks of title on the reason why that would be a is that the legal mortgage would be regarded as evidence that they convey in tow, checked the legal title, was satisfied with the legal title, and thereupon was able to give a satisfactory certificate off title to the mortgage lender that time. However, ideally, if that mortgage has been redeemed, there should be evidence on the mortgage that that is the case. So that is when you look for something which is called a vacating receipt. Vacating receipt is just evidence on the relevant mortgage deed that the mortgage has been, in fact paid off on the lender by acknowledging that is acknowledging that it is, in other words, relinquishing it. It's charge over unregistered title with one match the titles. They can be daunting at times, but over a period of time, it is something which people could get used to practice. I sometimes beat with paralegals who might work in a city centre based firm who very rarely and count up investor titles. If you're working maybe an area with a lot of agricultural property in a rural area with lots of people who own properties, then you might be more familiar with registered titles for the purpose off this particular module. Detailed consideration off arrest attack was not required, but it's important to be aware off some of the concepts relating to alleged titles on the differences between, um, edited titles. Onda registered titles as previously mentioned Oh titles will, at some stage, had been produced it. So let's just say, for example, I am buying a freehold unregistered title. So because we now have compulsory registration, the whole of England and Wales that will then trigger first registration of that title, let's decide. The title then consists of four acres of land, and I then decide I wanted I passed myself off some of this land. Maybe I make that decision four years after the event, so that happens. Then it will be the case that I will then be selling part of what is a registered title. So if I sells a maker that would be a transfer of parts. It will mean that I will retain three acres of land, but I will sell the fourth acre of land. Andi, it's called the transfer of part because it consists of belonged. I retain on the land I transfer. If on the other hand, the decision must take and I want to sell the whole off that title, then what would happen that is, That would be I would retain no interest in that land. I would subsequently so they don't. But in both cases, the dispositions subsequently would be of registered titles, but one would be at the whole on what would be a part how I thought in the next section we will look at the issue of requisitions on title on draft purchase deed. So you might be thinking problem. And you just said that no requisitions we raised on the title. Well, these requisitions typically don't relate to the examination off the title, which has been deduced by the seller cause. I've already mentioned that's normally dawn and checked before exchange of contracts. But this is where a particular form a pre printed form the form T 8 13 losses active form is sent by biased remain so two cells convince it to complete. So thes requisitions on title tend to relate to procedural matters in the run up to completion off a particular transaction. Now approval off a purchase deep submitted for consideration. Off the sellers convey answer will typically happen on the average sale and purchase off a what I call a secondhand property. This is a property which was previously bought. For example, Elise, when you first buy, at least the apartment being purchased will be a new property on the idea There is that the developer will provide a standard form of lease Andi that documents will in essence be in the form which has been dictated by the developer the same case. If you're buying a new house, the developer will dictate the terms of the transfer and will only allow very minor amendments. So just the inclusion off the bias name Andi, maybe ancillary minor matters which are pertinent to the plot. So on the subsequent sale, UNP purchase off the leasehold flat or the freehold house. What will then typically happen is the role of drafting the transfer than changes because it will be the bias. Convey Nsour, who will draft that document on a transfer of whole. Then it is quite easy to fill in the document. Many of the particulars are taken directly from the contract itself, so the seller becomes the transfer or the buyer becomes the transfer. Reeve. You insert the property address on the title number as per the office copies at you. Don't date the transfer because the transfer restated on completion. Remember to set out the party's at full names. Um, also an address for service. This is the address at which the lung registry will send any post completion correspondents. All notices at the purchase price is referred to ask consideration in the transfer. Andi. Also, don't forget that there is typically a provision in the trumps for where people who are buying on their joint purchases indicate whether they wish to be joined talents or tenants in common. Another key elements off a trumps for which is always essential is theater station clause. This a clause which formally identifies how a deed WAAS executed an execution is just a formal phrase to distinguish. Indeed, from a contract, a contract merely has to be signed. Where is the deed typically has to be witnessed. Now there are some unusual methods off signing a transfer in certain cases. For example, if you have somebody who has suffered a stroke and maybe can't sign that name, we're not considering those the most common way that indeed is executed. Is it signed by the transfer or Donald Trump's free, but especially the transfer or in the presence off a witness? Also, because lung registry practice in 2018 dictated the Lord London tree now insists that if you have the same witness witnessing to people signatures, then the transfer deed they needs to make absolutely crystal clear that witness or both people sign so it might be signed a deed by Mr in the presence off on if he's married something with his spouse. A separate at the station cause, which is signed by Mrs on her full name in the presence off the witness signs both occasions. So it's good practice also to include the witnesses full name Andi The Lung Registry do like to see the witness's name address on postcode. I met mention that because I have had a few cases where I've heard of the lad mystery rejecting an application for registration because the drugs we didn't indicate the full postal address for the witness. Now typically on a sale of purchase off a secondhand property, and I use up raising a sense of what, which is no new property being built by builder then, as I mentioned previously, is typically buys. Complained to the prepares. The transfer sent the cells convey answer for further consideration. In the vast majority of Katy's, there is no need for significant changes because if the contract for sale has been agreed, most of the documents can be taken from the contract where you have a transfer of parts, then somebody will need to draft the deed off disposal apart off the title. Typically, if you're dealing with a registered title, that will be on a form tp one. Andi, there will need to be consideration about any new restrictive governance. Identifying the past of languages being sold on the language has been retained. Andi, when there is a contract for sale, the agreed form of transfer should also be attached to both parts of the contract signed by selling by a ANDI, also held by both conveyances at the time of exchange of contracts. The final searches are typically searches which are undertaken in the run up to completion off the transaction. If you are purchasing with a mortgage, you will be required to undertake a bankruptcy search against the person who is selling. Typically, that bankruptcy search is against all known variations of the clients. Names Onda the intentions she's just revealed whether or not the person concerned is currently a long discharged, bankrupt and recorded the such or whether they might be subject to a bankruptcy petition, which may result in them being made bankrupt. If you are purchasing a long match, it a title, then a lung charges search will need to be undertaken. You enter typically, that when we carry out along charges search we do. It gets all well of the estate owners for their period of ownership. So, for example, it may well be done against the seller's name for the whole of the cells period of ownership. We look to see if any other centuries appear in this search. Now, just my own experience. Many, many years ago, it was typically common that if I was doing and admitted sale I as a South commence, it would produce relevant lunch allergy searches because the idea would be to try and preempt any problems up nearly stage. It's also I would then tell me if there are any documents or deeds, which I need to disclose to the bias. Convey. Answer. But typically, these searches are also needed in the run up to completion. So it may well be that the bias complaints undertakes them just before completion. What you're looking for is, for example, is a Class C one mortgage. So this might be a real life example where there were two mortgages over the property on day One Lender has the title deeds, but the other lander doesn't so the see what mortgage protects the puny mortgage, which might be a second more. Please Lunda restrictive covenants affecting Freehold Land. Strictly speaking, if they are to be binding against the almost two title than they should have been vetted as a D to London registry plus F lung charges, so they typically used to be called matter ammonium. How rights, although civil partners now have such rights of occupation of a former civil partnership home. So such rights are now called home, right? No, just patrimonio home rights. So there is also an example in the notes about the type off lung charges searches which will be undertaken against relevant parties so on. This will indicate, for example, the root of title on the relevant point was need to be taken into account. Also, when you have a London charges difficult, that certificates will give you a priority period. So this is not to be confused with the local lung charges register. So for local up charges that forms parts of your local authority searches, you do pre contract for that search. At the moment you get no priority period Onda. So the searches current as at the date you search. So with a lung charges surge which is undertaken, the central land charges register online. You get a priority period of 50 working days about guarantees that the buyer and now lender will be protected against any adverse changes to the title in that time. So, in other words, it prevents all the parties registering Joan that priority period. The typical sets that you want to take if you are purchasing a freehold title will depend on whether you are purchasing the whole or part of that title. So if you are purchasing the whole off the title you do in our swollen search, if you search part of the title, you do in OS to search So for the nurse to search, it is important to tell on registry which part of the seller's title you are searching against. If you're buying a field number 537 which is one of 1/2 acres on your buying part of the seller's title, which currently is five acres, you only search against the field, not the whole off the sellers title. And so for that you would provide the lumber tree with a plan. You also have a priority period off 30 working days from the date of the certificate. The commends. It doesn't need to work that out because the expiry date of the search will be shown on the certificate on. Typically, what you need to tell you is in contrast to a lung charges search where your priority period is to complete the purchase within the priority period of a lunch. Art research with a registered title is different. You, as a convention will be expected to submit your application for registration within that priority period, so not only to complete the transaction, but also registering on that pewter time. Also just mentioned. If you are doing the first registration application it's imperative that you submit your application to the registry within two months off completion. Now going back to the U. S. One search, which you want to take. You will also be searching from a given date. So when office copies were supplied to you by the seller's convey answer, they will have a date and time. So you go back toe the date off the office copies on. What you're doing is you're looking to see, Has there been any change the register? So the vast majority of cases the answer will come back. No subsisting entries. So you know when that happens that the register entries remember the free registers for the title that you serviced against on have not changed. I know the key thing to remember is the applicant for the surge. If your client is cash by it in the sense that they don't need a mortgage to form the transaction, then the buyer and more than one all of them will be named as the Africans. If you're buying with a mortgage, the applicant will be the lender on the way I look at that is that the lenders charge will be to abandon on derivative from the purchases title, which is derived from the transfer where the seller transfers only ship to the purchaser. So remember the lender is always the applicant when you have a mortgage. Didn't with mortgages. Depends on what the U RSL or a bias commences. So typically you are dealing with a sale by us. Don't usually agree to take over responsibility for the sellers mortgage, so the usual expectation is the sellers combine. Answer will undertake to redeem the mortgage, which is to reduce the balance off the mortgage payments to zero when no money is owed to the markets. Lunda the market slander then becomes responsible for discharging the mortgage. So be aware of the two different points. Typically, we meant to delay attractive discharges Previously. The idea then, is that the lender discharges the ball. Kage, typically these days by Elektronik Lee notifying the land registry that their charge could be released from a registered title on the convention, typically will obtain a redemption statement on in the run up to completion. That will be a final redemption statement, intention of which is to try and identify how much is needed to pay off the mortgage on the day off completion. If you're a bias conveying, so you will. Typically, if you're acting for somebody buying with a mortgage, you will need to submit a certificate of title festival. The certificate of title has two elements to it. One. You are certifying that the lenders requirements in respect of mortgage have been satisfied. Andi, in respect off, for example, investigation of title. And secondly, you are also requesting bonds. This is the mortgage advance which they've gone past month have been in the form of a check, but typically these days is sent by Elektronik Means Andi. Beware also off your firm's policies for who consigned those certificates of title. There were quite a few firms which will say, If we have paralegals, then this difficult title need to be signed by, for example, a solicitor or a partner. Typically, when you work to completion, the conveyance that provides that client with a completion statement now has to say that your client will have net sale proceeds, then the police is difficult, maybe provided to them all around completion. It's often good practice. For example, if you pay enough for mortgage to seven of the redemption statement before completion so they can just check the biggest. Make sure the satisfied with the It's really important to make sure before completing that any completion statement of the bias command sir sends out to the client is sent out in good time so that the client could look at how much money is needed to complete the purchase. That's especially the case people, cash buyers or people who are putting down large percentage off the purchase price. And of course, in that situation you are asking the clients to provide you with money on account declared funds. In your complete the statement you need to ensure that you have the balance required to complete. If you're buying with a mortgage, you will be expected by the mortgage lender Toe. Have money on account off your post completion disbursements, which include the searches that we just mentioned. The magnetar application fee. Andi. Any stamp duty long tax, which is payable on purchase in these notes? Stop Newt along taxes payable now in England. It's been abolished. It whales, but so you remain area or knowledge for this particular course when it comes to tax will be STL t Don't forget your certificate of title I mentioned previously. What you're doing is your requesting funds, and it's always good practice to request funds in good time for completion. That enables the mortgages under to process the request in the certificate to ensure funds were available for you to chase the lender if you have to for the phones, if there's any delay in any communication from them, confirming the announcements that they would be releasing funds on typically bias commences will ask the client to provide them with cleared funds the day before completion, at least. So at least you know on the day of completion that you're ready to go now it might be there's a chain involved, so all the issues will be out of your control on the day of completion. That will include the time that you receive any completion police on the sale from a biased campaign, sir, if you are selling. But what you want to do is make sure you have the funds ready and it's doing everything you can England time for completion, making sure that you have available. So if you have a look at the notes, there was a sample cash account provided by the author of the notes. They're also completion checklists. So what are some of the completion chap lists? If I'm selling, I want to make sure I have a signed transfer. Um, I'm buying with a mortgage. I want to make sure that I have a executed mortgage deed, uh, is a very any requirement for May to send any sign documentation if I'm perching to the cellar, where you'll often find that on a new bill purchase, where the buyer is required to sign one copy of the transfer and submitted to the developer before completion. So if that is the case in that the requirement the contract, make sure that's done as well. Other things. Sometimes clients will ask you, What am I going to complete on? The answer to that will depend in part on when we get the date of completion, when the bias conveyances are able to remit the money electronically to the cells conveyances when the cells commences, a notified by their bank or their on line banking system that they've received the money and typically, when the cells conveyances, then authorize the release of keys. Now we're talking about authorizing the release of keys. It just maybe saying, Let's say the state agents hold the keys on the properties empty by authorizing release of keys you are saying to the state Agents of the Keys can be heard it over to be bias convincer. And it is the handover of keys, which is complying with any obligation in the contract for the seller to give vacant possession to the buyer. So I would really around yourself with completed checklists. These days is often the case that you will have minimal documentation on. This is often because modern Len lenders nowadays don't want to keep lots of preregistration, deeds and documents. But let's to say that your clients on completion handed you a big, thick bundle of pre registration deeds and documents. You want to sit through those and determine which of those would be provided. Teoh the bias conveyances onda. Probably the easiest option is to hand over all of the documents, which are needed on check the execution of the transfer deed. So we said, make sure you have a document in your possession. A bill. The key thing on a transfer of part. We have a plan attached to the deed. Always a good idea to make sure that the plan has been signed by the transfer rules. Otherwise, you are liable to receive post completion a letter from the or email from the bias conveying so requiring that to be done on Dorland Medically requisition because land registry these days, Do you like to see transfers apart with a plan signed by the summer? But it's also a good practice for the plan to be signed by the trucks. Very completion to certain extents is the fulfillment off contractual obligations on the part of both seller and buyer. So the contractual obligation of the buyer will typically be to ensure that the relevant amount of purchase price sometimes revenge was the purchase monies have been handed over include fun to the seller's conveyances cells. Conveyances will also be duty bound to ensure that their part that they haven't executed transfer on that. That transfer will be handed over, so the conveyancing process also relies on professional undertakings. Typical, those undertakings are given by the seller's convincer. Now, if we look at the law society standard, um, on the taking in the 2000 and 19 code for completion by post on If I just mentioned this. First of all, make sure if you're using the TA 13 requisitions on title form that you used the 2019 version of Art Form. And also that form refers to the law society's 2019 code for completion by Post. It's also now becoming pretty much your standard expectation in excavating transaction that a seller's conveying, sir will, uh, agree in the replies to requisitions to comply with the more societies code for completion by Post. So it's important that you use the TA 13 current edition of 2019 which specifically refers to the 2019 code. One of the really important on the takings in the code is to redeem or obtain discharges every charge or mortgage so far as it relates to the property, which has no already been redeemed or discharged. The law scientist, called for completion by post, can be found online. Um, be aware that by agreeing to comply with the code, the cells conveyance ER is also agreeing to be bound by the various professional undertakings which are contained within the code. Also know your firm's policy with regard stupid, who is authorized to, for example, give all sign and undertaking. And often it will be the case that the phone will say it has to be somebody who is senior, maybe a senior solicitor, head of department or a partner. Next issue is what happens if there were delays in completion. Now, typically, ITC unjust simply happen that there are delays in completion and people don't complete until after two o'clock or late in the day. What happens if really reason The matter happens that we don't complete on the date of completion? Just breathe points they a company notes in the section on Delays. In completion, do mention conditions of contract, which go to the root off the contract. But what typically happens to avoid arguments over whether or not a particular breach of contracts, for example, they completion goes through with the common transit? No, the loss artist, under conditions of sale, have long allowed a party to the contract to serve a notice to complete. This is not to be confused with a completion notice that you might receive on a new bill purchase on a new bill. Purchase completion is often conditional on the House or the apartment being actually finished and constructed. Andi developed giving notice to the buyer to complete the transaction on that basis, we're talking here not about that type of notice, but we're talking about a notice to complete, which is a document which is served. It's not served very frequently what law released hopeful now, anyway. In theory, the noticed A complete is designed for circumstances where there's been a complete which has been delayed. Some campaigns have may not serve the notice to complete on the day of completion, but they might serve it, for example on the following day. So if a buyer has failed to complete the cells, conveyance of would be within their rights to serve that notice to complete what the standard conditions of sales state is that time is not of the essence of the contract. Initially, so fella, typically on the day of completion, doesn't give either party sellable by the right to rescind or terminate the contract. What happens, however, is if a notice to complete its served than a further period of time is fixed beyond the completion date, not in the current version of the Law Society. Standard conditions of sale is 10 working days, excluding the date on which they just given 21 days used to be the norm, but the current on time. It's 10 working days and so, if example appointed, get towards the expiry off that period. And that's just say. Originally, it was the buyers that didn't complete Onda. We get to the end up here by still haven't completed within the period. The seller would then have the right to say I am rescinding the contract because the notice to complete makes time of the essence. Andi, it doesn't mean that the experiment, the notice that the seller, for example in that case I mentioned then is obliged to rescind all that. The contract is automatically rescinded, recision being but a word full terminated. But it gives the seller of the option off rescinding the contract. It could also bay that you're dealing with a circumstance where the buyer is serving the notice to complete, in my own experience in the vast majority of Casey's, at whether circumstances where, for instance, a completion is delayed in most circumstances, the transaction completes maybe later today all the following working day. Noticeably traditionally should be reserved for those cases where there's some genuine concern. The wall of the part of the contract may not be willing to or may not be able to perform their obligations under the contract. So suggested former Off noticed Incomplete is mentioned in the notes. But do please refer to the relevant clause is in the law society standard conditions of sale relating to such a notice. Also, be aware that the law society has what it calls its interest rate. Andi. Standard conditions of sale on Sunday contract contains a contract rate so that contract rate may, for example, ST 4% above the law. Scientists Interest rate Some people might argue that you should really stick to the law society's interest rate, but whatever the interest rate is, that is the interest rate which is applied, for example, to the sale. In certain cases, it has been a delayed completion on will be payable by the person responsible for the breach of contract, which calls completely not toe happen at the agreed time, just referring back to the issue off redeeming on discharge mortgages. In recent years, lenders have increasingly taken the decision that they will. Elektronik Lee discharge mortgages, so there is reference in the notes to a form DS one. Some years ago, lenders would expect the complain sir, to fill in the DS one, which is the document which is formally required to discharge the mortgage. So the solicitor would still have to pay off the mortgage if the writing on the sale but the lender would formally distracts up more good Jews in DS. Well, as far as I'm aware, there is only a harmful off small build societies that still use the DS one. In the vast majority of cases, mortgage lenders now Elektronik Lee discharge mortgages, so they will do so using the electronic distant system or the E DS one system. It depends which system they have agreed with. Long registry will be adopted for electronically discharging mortgages because even with the non registered title, there will be an expect title. There will be an expectation that any mortgage registered against that title will be vacated. That's a formal praise on. You will then be looking for a vacating receipt to be endorsed on the mortgage deed itself. Also, if you're acting for the buyer, there are certain steps that you will be expected to undertake. So as with the case of the seller's conveyance, who will tell the client that the sales completed, the bio should also do the same. The lender should also identified this completion has occurred. Also attend to payment off stamp duty lung tax. Just a brief pulling on this particular point stamp duty Land tax replaced the previous system off stamp duty. So with the old stunned duty, the stamp duty was attacks on the deed. This is why you will often see uh, documents stands by inland revenue, as HMRC was known in those days, documents not formally stamped because some detail on tax, which is replace stamp duty, is a tax on the lung transaction rather than the documents. There's also a the long transaction tax in Wales, which I think is more and the accurate it's description off the type of tax that you are looking for. However, the notes just really require you to be aware that Wales has his own tax system. There are some similarities and some differences which would be able to scope this presentation between long transaction taxing whales under stamp duty long tax in England. Suffice to say that the vast majority of purchases off properties will attract some form off duty. So that s TLT, which is the main form of tax that you need to know about on this course. The amount payable will depend on the purchase price whether the properties residential, because different rates of ask lt apply to residential Andi commercial or non residential purchase. Whether or not this is the purchase off a second home. The rules relating to what is referred to as the extra 3% levy or surcharge are really complicated on beyond the scope of this course. But just break briefly. Simply stated, If you are giving with homeowner who is selling a property which has been their main residents for the whole period of ownership, I'm on the day of complete. They are buying a new main residence to replace the old warm. Then, in that circumstance, the normal rate of Ste lt will apply. The situation is to arise where, for example, you have somebody war He owns a house on. They are buying a second property. Andi. Unless an exception applies, it will be the second property that will attract the higher rates of STL tea at 3%. That's 3%. On top of the normal rate is also the question if somebody is a first time buyer, so I just wanted to break points about this. You need to be satisfied for the first time by it that, according to the instructions they don't have and have never had an interest in another residential property. Whether that's in this country, that could include, for example, a property they've inherited a sharing or it could be a property based in a country other than England or Wales. There were two issues. That or three issues, perhaps at the beginning of the transaction, identifying the appropriate amount of STL t but course in the client that the amount of nasty lt might change if new circumstances come to the commands Attention. For example, if you were a little instructed on the basis that the property was intended to be the person's first time purchase, and then you discover that in fact they owned the property or they're buying with somebody else who owns the property so they can't play in the first time by rate you done in your final completion statement on hopefully before 100. As soon as you become aware that a circumstance notify the client off the amount off any additional tax is payable that is trying to get the right amount of invasion beginning from the clients. And then you also submit a nasty lt one for which requires various details be provided about the property in the price. In theory, the return come be submitted by pass a rock or it can be submitted electronically. I think you should always be submitted, Elektronik lee myself because at least if you submitted electronically, you will be prompted to ensure the all relevant details have been provided. You said it by check. What happens if the check gets lost in the Post s O? This is the reason why. Typically, conveyances will now make sure that s TLT, which is payable, is paid online to hmrc both of return and the tax now must be paid within 14 days. It used to be 30 days on. This is normally from the date off legal completion. There are one or two exceptions, but again, we're just looking at the main key elements off STL t here so it's usually 14 days from completion. With limited exceptions, we have already referred to the F you off the distinction between registered and unregistered conveyancing. But we are now looking at the issue off how you actually go about registering your transaction after completing the transaction. And it's fair to say a point that's important is that on the day of completion, typically will happen Is the cells convince? Will hand over an X Q T transfer, which should be dated the date of completion on it will name the buyer asked the new owner. But the buyer doesn't legally become the owner of the property until they have become the registered proprietor of it. So in the case off the purchaser of unregistered title, they will become the first rate Sedona. Having said that, though in practice that my also be occasions where the bias convey answer might look at the unregistered deed and say we're not satisfied that this is a good title. Well after cells conveyances to register the title voluntarily. So whether title is voluntarily but just did it stone because it's not compulsory because the seller is not buying it. The salvors owned it for many, many years, or the seller might be a personal representative like a executor. So in that situation, the cells conveyance that would then make the necessary application if they agreed to do so. So typically the forms of different so on first registration, the relevant form will be former filed one on many of the documents. Indeed, we so submitted as part of the investigation of the unrest of title, will be submitted to the lung registry. So it should include the root of title conveyance, the signed Trump's for 100 from completion. The lunch allergy searches, particularly to show any entries or absence of entries against the estate owners that we searched against on any preview documents that might contain any old plan. So if the root of title was a conveyance from 1963 Andi described the property in an earlier date from 1938. We would then if that 1938 deed had a plan and we have a copy of it. Also supply. That's a long registry. Also, if the 1963 conveyance refers to an earlier D to its contained restrictive covenants which have property, say 1952 per veins. That convention also be supplied to the lung registry as well. Now, with a registered title, you will be registering a property which has already been registered. So any disposition, often existing Webster title. The typical form which is used is the form AP one, and that's used for those transfers off whole and transfers of part off a registered title. So not situation. Typically, what's how 100 over on these days on completion is a solemn transfer. If a Morgan needs to be discharged, then the evidence off the discharge of the mortgage will usually follow after completion. Andi In both cases, if the title is registered or unregistered, the if the property was bought with a mortgage, the mortgage deed will also need to be submitted to the land registry as well. So there were no shell is on overview that we provided off a typical conveyancing transaction. There's a lot more involved, then what has been outlined in these recordings, and I will in a moment just make some brief observations with regards to Lee told Conveyance E. But there's some observation just very briefly about this. Oh, any of the course that you got on the course can provide you with fundamentals. But what will happen is it's a good idea toe. Apply those fundamentals you day to day practice because it's the application of knowledge where people learn Andi, everybody learns from experience. Detailed consideration off lethal conveyancing is beyond the scope of this particular presentation. But one important elements off conveyancing when you are dealing with the lease is being able to explain to a client the difference between a freehold on the leasehold property. Now, some of the differences have been blurred in recent times, but let me just give you some of my own thoughts about this. In theory, a freehold title can last in perpetuity, so it could be over the next 1000 years. There may well be 50 or 40 or 30 different freehold owners. Police, typically particularly a resident release off a flat or a house, will typically be sold on the basis that the leases granted for a fixed period time. So that's 100 25 years on 125 years starts from a defined dates. So what happens there is that you are not having a least granted to you in perpetuity. is granted for a fixed term of years. Often, I would say that leases tend to be longer than transfers. I sort of conveyance to recently actually pull out a transfer. Andi was like in the booklet, but this was a free old Trump's for on the new estate. So sometimes you do get some developer whose lawyers try and be a bit clever, but typically and you have with the lease a long list off obligations, which the lessee, as I call them, I typically refer to this lessee unless all that you might refer to his landlord or tenant. And the idea is that, for example, a freeholders, a lot of Lord grandson Longley's so that Lee smite In Corp raids on obligation to pay an annual grown men, which might be, say, £50 so distinguish house lease and a flat lease with a house lease. Typically, the owner of the leaks is responsible for maintaining, repairing and insuring the house both externally and structurally. For example, in the case of repairing obligation on the freeholder may just collect a rent on. Often you get cases where there is no freeholder collecting any rent a tall now because of the recent ground rent scandal on government proposed legislation. I would expect that Housely sees for new built properties will become non existent. But house leases that were granted 10 2030 40 50 60 however many years ago well, still continue. So you will need to check the title to those in some cases as well. A lease holder might be entitled to what we call in franchise, that is, by the freehold of their house. And Franchising is beyond the scope off this course. The other type of lease is the least off a flat or the modern term is an apartment. In this situation, you might have house converted into two flats. In that arrangement, the Lung Lord may dictate that each leaseholder is responsible for the maintenance on repair and insurance of their own individual flats. So it might be the ground floor owner repairs. The foundations on the upper floor owner is responsible for the upkeep and maintenance off the roof. If you have flats in an apartment block with several flats, it's often the case that you'll have a centralized management company that will be responsible for the management's administration on basically running the estate that might work. Company will typically have service charge accounts, which you will issues a company. It will be required to provide accounts for each 12 month Pavey it that it is administrative administering service charges. Typically, the conveyancing transaction may have a management company. The expectation is that three years of management or service charge accounts are provided, of course, of the new build lease, you're not going to get that. But typically with the lease of an apartment, somebody buys the apartment. They have responsibilities for the apartment, keeping in repair and decorated. They are also often subject to very, very long restrictions. So if you deal with the legal title, you will need to look up the lease if you're buying. Andi reports your client in detail on that police. So often there's a division of responsibility, at least some so part of the division responsibility that the management company might be responsible for ensuring the whole building. But the individual leaseholders of own flats are then responsible for contributing, for example, a certain percentage towards the insurance costs. This course is not detailed examination off leases, but it's just to distinguish between the two various forms with leases you're also distinguishing between Grand City releases, an assignment of new leases. So on a sail off a new apartment, have you will have a lease If you're purchasing handed over to on completion, it's often the case that the lung warts stroke developers listers will expect the buyer to execute a counterpart. Lease count of at least is just a mirror copy of the lease, which the developer will be handing over on completion. The contract for the grant of the lease will only stipulates the form off the lease to be clean in the form, which is attached to the contract so the draft leads will often be attached. The contract The engrossed lease, as with the engrossed transfer on the new build, is the final approved document, which is signed by the parties and in the case of this transfer, or is handed over by their sisters to the buyers. On completion, we or, in the case off a new lease, it will be the original landlord granting the least to the original talent. So the original purchase off the flat when its new is called the grant off the lease, several years later, the person who bought a flat or apartment new build from a developer comes to sell it. We then call that former sale on assignment. Still typically because the least will be registered. The TR one is the former. It will be typically used to effect a formal transfer off that particular property. The losses arts too more the law Society committed Protocol 2000. In addition, sets out what is expected to be provided by the cells convincer with the contract bottle for the sale of a lethal properties. So it's typically includes the least all information form that is a TA seven form and that contains questions that the seller is expected to answer. Regarding the leasehold property where you have a building which is managed by a management company or the like then form L P one and P two is typically sent to the minors will complete all to its agents on that will give you information regarding service charge accounts, ground rent receipts, building insurance details, etcetera. Andi, you will still need office copies of titles. But instead of transfers being provided with a registered title, it will then be a need to obtain the actual lease itself. Some cases some management companies are what we call limited by shares. So if it's a lessee member company than everybody in a flat development will be required. Typically by that leases become a member of that company, Andi. They will often be required to have shares in that company. If that is the case, then there will be a need for us just difficult to be provided on completion. Andi something called a stock transfer form where the seller agrees to transfer their share to the buyer. It might be also that you have a company where there's no chance difficult because it's a company limited by guarantee. So just ending this section looking at pre contract on post contract were undertaken. So, for example, under the law society's conveyancing protocol, the sellers complain, sir, must, according to the protocol, obtain the lease or an official copy of the lease. Send the bias solicitors the leasehold information form, together with supporting documentation which could include a ground rent receipt. The purpose of the ground mint received is to prove that the ground rent was paid at ground is typically money in the form of an income provided to the landlord. It may be in the future that rents become what we call nominal or peppercorn, which is like a fictional rent or nonfinancial rent. But you'll find that historically, the vast majority of leases come with some form off ground rents that you want evidence of that ground rent is paid up to date, so the charge accounts are also typically provided and those mentioned previously. If you got a management company, typically they will be expected to provide three years of service charge accounts. You will also the trust detained at an early stage of at least all committed transaction, particularly Flatley's, who is going to be providing the replies to enquiries on Form LP one. The leasehold property enquiries form. There is also no pea to form, but that's beyond the scope of this particular presentation. Because the vast majority of the questions are in the LP. One form you find out who that person is and then send off to them the form for completion. Now the form is not at the moment legally mandatory, so you still have some agents that will reply, use in the form other managing age of someone's. But companies might come back use in their own standard form of have replies to enquiries to be clean management. Company managing agents also charge for providing the replies to enquiries. So that's an additional cost, which needs to be born in mind, and often they will not. I agree to proceed unless their fees are met Andi. So typically, if you're dealing with a little title, you will need to provide evidence off the title consisting of the contract office copies, at least on the leasehold preliminary enquiries. The bias conveyances also have their pre contract work to do se. There is reference to amending or approving the draft fleas. The drop, please Andi clearly is a reference by the author of the notes to a new lease, which is in the process of being granted because when that happens, it might be you see to try and negotiate the terms off that drop. Please. That's the theory. In practice, it's often the case that a developer will say that, at least has been drafted on its standard form on substantive amendments. Other than minor or plots. Specific amendments are not allowed. Another thing that's a bear in mind as well. Typically, when you buy a new property, there is no universally standard for which is used by developers so often. If you're buying a new little property from a developer new apartment, you will be at the purchase convincer, checking all the documentation provided by the developer in the form of pack that they make available on. So the LP forms that we mentioned are typically expected to be completed, where there is an assignment of an existing lease sellers post completion or post contract work rather, which is referred seriously, Company notes. There's reference to engrossing lease and counterpart So again that primarily refers to the contract for the grant of Louise. So, typically, if you look at the usual form of obligation of contract, the engrossed mints on a new lease will be provided by the seller or landlord's solicitors, that is, that intended to be sent to the bias conveyances. Often, documents these days are sent electronically, but there is the counterpart Andi on Gross Lees. Traditionally, the engrossed mints would be sent in hard copy through the D X. The idea of account about is it is a mirror copy off the original documents. So the counterpart traditionally was signed by the perps attendant who buys a new lease. Onda the N. Grossman is the document formally executed by the long war that grants the lease. At least it's already police is a complicated documents. I've highlighted some of the issues that it refers to Andi. In truth, I could spend hours, and I was that I was talking to you about leases but were again looking at the fundamentals here. It's worth bearing in mind when you come to register a new lease that the vast majority off residential leases will be long leases on. By long leases. We distinguish short term leases. So let's just say you have somebody who rents the house out on bond. They take a two year tenancy agreement. That tenancy agreement is not register below the land registry because only leases granted return off small in seven years. For time, a bolt in seven years is compulsory vegetable of the land registry. Typically, a lease will be granted nowadays for 125 years as a minimum. It might be more than that, Andi, There was no other wish to that. People need to be aware office well, is that as that least turn diminishes, then the time remaining on the Leafs also diminishes thought that the issue is what we call the residue. So let's say today, on the date of this recording, you are completing a new purchase of a new flat or apartment on. The Lee says that the lease is granted for term 125 years from the date of completion. Then what will happen is if your client then owns that leads for another 25 years than in 25 years time. 25 years years would have been shaved off the length off the turn on the residue or the remaining term or 80 years. And it'll often be in that situation that the bias conveyance civil then need to look at the leaks and say, well, would the remaining term be acceptable toe mortgage lender? So if you have a mortgage lender that says that it will only accept a lease with the remaining term of 85 years, then clearly you then need to look at that scenario beyond the scope, this presentation, any great detail. But there are some cases where people can, either by agreements or because they have a statue, right? Go to that Love Lords and say We want a lease extension. The least exemption is ineffective. New lease granted, which extends the term. So let's go back to the example. Let's say that somebody has 65 years remaining on the term of that lease. Andi. They negotiate a stuffed release extension to grant the new lease terms. The new leases granted the new lease term will be additional 90 years. That's the Statue term Andi, so the new lease will be granted for whatever the rescue waas 65 years, plus an additional 90 years. Lease extensions are beyond the scope off this particular presentation, but it's worth also being about it. When your client is buying a leasehold flats, they are also typically subject to humus restrictions on two of the classic ones. I will just site now restrictions on subletting. Sometimes people think it's a good idea Tol that's run in my flat out to people on short term tendencies or on sites like Airbnb. Now, leases will often have restrictions in them, which are more stringent and more numerous than freehold transfer, so If you are released, which prohibits subletting without the landlord's consent, and you've got somebody who was bought their long lease and they've been subletting their flats on six month tenancy agreements. Then they breached the terms of their tenancy agreement. Another example of restriction is one which restricts alterations. If you're quite owns a freehold house, they can carry out internal alterations. External trace into the property as long as they comply with, for example, planning laws and any restrictive covenants typically releases. If you want to Walter parts of your flat, you will have to go and get your lung board's permission. I'm not from that position is referred to a license, so you get the license and you comply with the license. Then you comply with your lease terms. If you go ahead and do alterations without your landlord's permission on the least requires your landlord's permission, then you can find some time the last board can come down on bond. Take enforcement action again there. Highlight that the purpose of this session is not to look in any great detail about leases, but just highlights all the key differences between leases on freehold titles in the appendices, you will see a sample transfer conveyance now that is on the form off the traditional form of commands around it. Along the, um, see A rather than some sort of the modern tr want tp one. So that sets out an example of a traditional conveyance that you might come across in all major title. Or it might be interesting title because it contains various rights and obligations. There's also some police is, well, some police contains things, which is references to rent the lessees obligations, such as paying rent Andi something obligations were into previously, such as painting the interior of the flap every so often not to do anything that would render the policy of insurance void. You'll also see, in close three of the some police provides Oh, for four feature. So this is a common provisionally switch a laurels, The Love Lord to terminate the lease. If there is a breach off the terms of the lease in certain cases, which is non payment of rent, then you also see the example leads, which contains very sub ligations by the Lessel. So this might also be to ensure the building to keep it properly maintained repaired. So this comes in and not show the issue off leasehold convincing our purposes. Hopefully this presentation, which has been designed to a company, the units 36 notes hopefully would have found the presentation helpful is designed to elaborate on many of the key points. But in answering the questions which you get very mind do stick to the materials I mentioned previously. It might be you get different conveyances do things differently. But the authors of the dopes have endeavoured to give you a typical examples of a typical conveyancing transaction. Do you also be mindful of the learning outcomes because they're designed to do what the people who designed the overall calls, what do they want you to achieve? What do they want you to achieve by completion of the call so bad that mind and also in answering questions as well, bear in mind just ensuring that you do demonstrate your understanding of key concept. You demonstrate that you are understanding of what has been required. If you buy the question on that, you are also demonstrating that you have complied with the learning criteria or learning outcomes are learning objectives which I have tried to elaborate through this course in which are also highlighted in the accompanying knows So my final task is to wish you well on this course with your future career. This presentation has been brought to you by myself. Steven Desmond in conjunction with Data Law, the CPD training provider Andi, the National Association Off Licensed Paralegals.