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Hello and thank you for your question. I will be very pleased to assist you. I'm a practicing lawyer in England with over 10 years experience.
May I clarify that your client is purchasing the entire title - i.e. not just part of it which might be the case if he is buying a house on a development?
yes the client us purchasing the entire title
I have just read your query again. My client is a new build property which is part of a development, but the property has a separate title number
My client is buying a new building property which is part of a development, but the property has a separate title number to that of the development
My apologies for the delay in reverting to you. I had to take a telephone call.
If the property is being purchased from a developers title comprising more than one property then you would carry out an OS2 search of part. However if the developer has already split up the estate into separate title numbers and you client is purchasing whole title, than an OS1 search of whole would be carried out.
In terms of timing, if there is an interval of a week or more in between exchnage and completion it is safe to carry these searches out after exchange. Ideally you should do sol at least a day or two before completion to allow time for any adverse entries revealed to be queried with the sellers solicitor, however all that is crucial is that you carry out the search before you complete and hand over any money.
Reference requisitions on title and completion information, the conveyancing protocol provides that you should raise requisitions on title immediately on exchange of contracts however there is nothing preventing you raising these before exchange and if you were exchanging and competing simultaneously you would do well to consider doing so. If there is an interval between exchange and completion, conventionally you would send these out with your memorandum of exchnage to the other side.
I am due to send a deposit of 10% today. There is then going to be a delay between exchange and completion. There is no fixed date for completion yet.
Fine then I would simply raise requsitions with your memo of exchange and deposit and delay an OS1 search until you receive notice to complete because they expire after 45 days (if memory serves me correctly). Put a note on the file to remind you to carry out the OS1 search on receipt of notice - it may be on a checklist you already use.
I am concerned that I am sending money without having done the searches but are you saying that is ok to do? Also there is no fixed date for completion. Should I specify that a) the money is held strictly to our order and b) completion must take place no later than say 31 May 2015?
Yes - providing you have received notice of NHBC or similar warranty cover for the property the NHBC or similar insurance covers the deposit in the event the developer goes bust before completion, and in any event your client still has a right to buy the property even if they did go bust.
The OS1 and requisitions on title do not alter the position regarding the deposit for better or worse. It is governed by the contract once exchanged.
Does the above answer all your questions or is there anything I can clarify or help you with any further?
Josh. Thank you. We have actually spoken a few times before. I prefer to spend a bit of my own money on such issues rather than asking my scary principal!!!
I remember - hello again. I hope things are going well. I am glad I could help. I am sorry that your principal is not overly approachable. That is not ideal because it will be his head if one of his staff makes a mistake - not that you will of course! If you havent read it this is a useful document to familiarise yourself with even if your firm does not adopt the protocol formally:
Things are going very well. Nearly qualified and learning all the time. I have already read the protocol but found it to be a little ambiguous hence my asking. Thank you for your assistance once again. Until next time....
A pleasure. Good luck with completing your training.
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