| Monograph : Conveyancing |
Contents |
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| (9) Completion |
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Completion of the sale
and purchase of a property will usually involve the
following steps and issues which lead to payment of
the balance of the purchase price by the purchaser on
the one hand and release of the keys to the property
by the vendor on the other.
| 1. |
From the purchaser's
perspective
| a. |
If the purchaser
is an individual, he should:
| i. |
Confirm with his solicitors
several days before completion the exact
amount payable on completion. This usually
consists of the balance of the purchase
price and his solicitors' fee. Assuming
that the purchaser has paid 10% of the
price as deposit and is using a loan
from a bank for 70% of the price, he
will need to have 20% of the price from
his own resources ready for completion,
together with legal fees. |
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| ii. |
Execute all relevant
documents at the office of the purchaser's
solicitors before completion (including
assignment, mortgage and loan facility
letter, etc.) and pay the balance of
the price and legal fees either by a
bank draft drawn in favour of the solicitors'
firm or by transfer into its bank account.
If payment is by personal cheque, allow
sufficient time for cheque clearance.
For example, if completion is on a Friday,
the purchaser's solicitors will usually
require that the cheque for the balance
of price be received by the firm not
later than Wednesday. |
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| iii. |
Before completion, make
an appointment with the vendor through
the estate agent for a final inspection
of the property mainly to verify the
vendor's ability to deliver vacant possession
of the property. Carry out the inspection
in the morning on the completion date
by the latest. After the inspection,
inform the purchaser's solicitors as
to whether the inspection was satisfactory. |
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| iv. |
Regarding utilities,
such as water, electricity and gas,
the purchaser should produce the agreement
for sale and purchase or obtain a letter
from his solicitors confirming the date
of completion so that the purchaser
can prove to the utility companies his
interest in the property and when he
will become the owner of the property.
The purchaser will have to fill in a
relevant form and pay a deposit in order
to open an account in his name for each
utility. |
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| b. |
If the purchaser
is a corporation, basically, the same matters
and issues set out in paragraphs 1(a)(i)
to (iv) above apply. In addition, the following
are necessary:
| i. |
A written resolution
or minutes of meeting of the Board of
Directors of the company have to be
prepared, authorising one or more director(s)
or other authorised persons in accordance
with the Articles of Association of
the Company to execute the assignment
and mortgage. |
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| ii. |
The common seal as well
as the company chop must be brought
along in order to execute all the relevant
documents at the office of the purchaser's
solicitors before completion. |
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| 2. |
From the vendor's perspective
The vendor should:
| a. |
Ensure that all occupants and
items of furniture not sold to the purchaser
are vacated from the property before completion
in order to deliver vacant possession of the
property on completion. |
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| b. |
Before completion, retrieve
receipts for the management fee deposit and
invoices or receipts for the latest management
fee and demand for rates and government rent
(if applicable) and produce them either to
his solicitors or the estate agent, for them
to prepare an apportionment account. |
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| c. |
Deliver keys to the property
to his solicitors or estate agents for delivery
to the purchaser on completion. |
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| d. |
Execute at the office of the
vendor's solicitors the assignment (already
executed by the purchaser). If the vendor
is a corporation, bring along the company's
common seal and company chop to execute the
assignment and prepare a written resolution
or minutes of meeting of the Board of Directors
of the company authorising one or more director(s)
or other authorised person(s) in accordance
with the Articles of Association of the company
to execute the assignment. If the property
is a negative asset, confirm with the vendor's
solicitors before completion the exact amount
payable by the vendor to discharge the existing
mortgage and pay the same together with legal
fees to the vendor's solicitors on or before
completion. |
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