Discussing Dates
Discussing a completion date with the other side’s conveyancer. Their client may need time to clear the property, pack, and book removals. All parties must agree the same dates. It is not for one person in the chain to decide the date. It is a negotiation.
Final Report to Client (Where Applicable)
Preparation of any final report and sending you copies of the last of the replies to enquiries. We will need to confirm with you that you are happy with the replies given by the other side.
Obtain Funds from You (i.e. your 10% Deposit and / or Balance to Complete)
We will also ask you to close any Lifetime ISA and/or any Help to Buy ISAs you have. Please do so as soon as possible and provide us with closure confirmation.
You may need to transfer monies to fund your deposit / balance to complete. Moving monies can take a little time. Sometimes notice is required. Please update us with your latest Source of Funds bank statements and evidence.
The standard 10% sum (deposit) paid on exchange will come up the chain from your sale matter where you are selling and buying. It is usually 10% of the purchase price but depends on the chain.
Apportionment Statements & Leaseholds (If Applicable)
With Leasehold Properties we must hold an Apportionment Statement from the seller’s Conveyancer. This covers the Ground Rent and Service Charges and the reimbursement of overpayments to the Seller. We incorporate these figures into our Completion Statement. No completion statement can be drafted without the Apportionment Statement as it would be inaccurate.
Buildings Insurance [IGNORE if Leasehold as Management Company insures]
Unless you are a cash buyer, we must review your buildings insurance schedule in accordance with your lender Terms & Conditions. Buildings Insurance must be in place for exchange to occur and the lender requires that we see a copy of it and can confirm that it is sufficient.
Lenders insist buildings are insured to protect their security. If the property burns down after completion the lender has no security. We cannot exchange and complete without the insurance in place. We would be grateful if you would forward the buildings insurance schedule. Insurance can be placed on NOTICE now and finalised on the day we exchange.
Even cash buyers should insure the property due to the risk between exchange and completion. If the property was destroyed after exchanging, you remain committed to buying it.
Your buildings insurance should cover the minimum rebuild value of the property. This will be stated in your lender’s valuation.
Completion Statement
We prepare the draft Completion Statement and email this to you. We will include advice on making payment. We will need an agreed completion date before doing this and we must ensure that you are happy with the replies to enquiries beforehand. Funds should be sent by CHAPS, Telegraphic Transfer or Faster Payment only and please reference with your matter number.
Land Registry OS1 & Bankruptcy Searches
These are often referred to as the pre-completion searches. We must obtain OS1 and bankruptcy searches from Land Registry. These are required to ensure the seller’s deeds have not changed and there are no new, onerous, or prejudicial entries appearing since the issue of the Draft Contract Pack. This takes a day or so and we are reliant on Land Registry to provide the same.
Submitting the Certificate of Title (COT) (Where Mortgage Advance Needed)
This is the request for the mortgage advance to be released. We submit the COT to your lender by fax/post or email. Most lenders require 3 to 5 working days’ notice to release funds. There are some lenders who require 7 to 10 working days. To protect you we ensure the lender can honour the release of funds in good time for completion. If funds do not arrive on the completion date you will be in breach of contract.
We MUST have an agreed completion date before we can submit the COT. This must be agreed by all parties in the chain. This cannot be done whilst enquiries are outstanding. The completion date must be correct on the COT. Changing the completion date on the COT causes issues with release of funds and results in delays with the lender confirming release of funds. This may prejudice release of funds. The lender will need to process the Certificate of Title which can take 3 to 4 days especially during high volume periods.
Booking Removals & Giving Notice
We cannot advise you to book removals (or give notice under any tenancy) until we have exchanged. Nothing is guaranteed until exchange occurs. You may incur costs with your removal company (or be homeless) if the completion date moves before exchange occurs. Completion is only set once exchange of contracts happens.
Deposit Funds, Evidence of Transmission, Compliance and Source of Funds
Once we have funds to exchange (this is usually 10% of the price shown in the contract), and / or your full balance to complete, we will need a bank statement from you showing the transmission of the monies to us. If monies are transferred between accounts, we will need this for all accounts involved. We MUST NOT receive funds from third parties who are NOT our client. Please provide Bank Statements clearly showing your Bank Name, Account Number and Your Name. Your screenshot sending us funds should match the accounts we have already reviewed during the Source of Funds & Source of Wealth compliance process.
**Cyber Warning: Emails are NOT secure & we do NOT like to send/accept emailed bank details. Please note emails can be intercepted & details replaced. Emailed bank details should always be confirmed once at the outset via telephone call before providing funds. We will NOT change bank details mid-transaction.
Being in a Chain (if applicable)
There can be several people involved in a chain of sales and purchases. This can delay matters. We are not always made aware of how many parties are in the chain and strongly suggest that you discuss this with the Estate Agents and confirm this information with us. You will appreciate that when we prepare your file to exchange and/or complete we are reliant on the assistance and co-operation of all parties involved. The ability to exchange and complete is dependent upon others being ready when you are.
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