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Conveyancing

Land Registry – original documents

Since July, the LR has been scanning all documents and correspondence. The problem with this is that they will not return anything they have scanned.

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Unstamped document – no effect

A recent case neatly illustrates the dangers of relying on unstamped documents. The case itself involved a ‘right to buy’ scam whereby a council T exercised his ‘right to buy’ having first fixed up a deal with the Buyer.

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Lock-out agreement – effect?

A prospective buyer and seller can agree that, for a fixed period of time, the seller will not negotiate with anyone else, and the parties will proceed in good faith.

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Completion – late payment

Time only becomes of the essence when a notice to complete has been served. Thereafter, any delay can be fatal to the buyer (who may then lose his deposit).

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Land Registry – new forms

Do not forget that from 10 November, all LR forms will change. The new versions of AP1, FR1 and DS2 are mandatory for all applications received on or after 10 November.

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CML – incentives

A reminder that the Council of Mortgage Lenders altered its standard industry conveyancing instructions in September, so you must obtain a ‘disclosure of incentives form’ from the developer’s conveyancer.

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Failure to complete – seller’s position

If a buyer is in default, with the seller having served a notice to complete (making time of the essence), then the seller has two choices, either:

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Law Society – banking collapse

All conveyancers will be familiar with the Law Society guidance published during October’s banking crisis. The key statements were ‘if you have made any express undertakings to pay money, you must honour this even if the bank has collapsed’.

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Insurance – noting an interest

Noting the interest of a third party (eg a T or mortgagee) means that the insurance company will then have to notify that person of any claim under the policy (or an event likely to invalidate the policy – for instance, non-payment of the premium).

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Land Registry – amending deeds

It is important to remember that there are prescribed procedures that apply for correcting mistakes if a document is to be registered at LR. This contrasts with unregistered conveyancing, where a deed of rectification or a deed of variation will be used. As far as LR procedures are concerned, much will depend upon the timing:

before the original document has been lodged for registration: in that situation the original document should be amended, with each party counter-signing the amendments. The documents can then be submitted to the LR in the usual way;

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