What Is The Law Society’s Code For Completion By Post?

The code is followed when completing a property transfer by post instead of in person. It can be used for residential or commercial transactions.

Procedure

Both solicitors must agree to use the code, although the use of the Law Society Conveyancing Protocol automatically implies this.

On completion, the seller’s solicitor acts as the buyer’s solicitor’s agent without fee or disbursement. However, this duty does not extend to being required to investigate or be responsible for any breach of the seller’s contractual obligations.

When the seller’s solicitor receives or holds completion money, it is held on trust for the party who provided it, to be:

• paid away only, for a completion in which the seller executes and delivers a valid conveyance or transfer; or
• repaid to the party who remitted it if completion does not occur.

Before completion

The buyer’s solicitor will use reasonable endeavours to ensure enough funds are collected from the buyer and any mortgage lender in good time to transmit to the seller’s solicitor on or before the completion date.

The seller’s solicitor will provide the buyer’s solicitor replies to completion information and undertakings in the Law Society’s standard form at least five working days before the completion date.

The seller’s solicitor undertakes:

• to have the seller’s authority to receive the purchase money on completion;
• on completion, to have the authority of the proprietor of each mortgage, charge, or other financial incumbrance which has not been redeemed or discharged, to receive the sum intended to repay it.

If the seller’s solicitor does not have all the necessary authorities, they undertake:

• to notify the buyer’s solicitor no later than 4 pm on the next working day before the completion date;
• not to complete without the buyer’s solicitor’s instructions.

The buyer’s solicitor can send the seller’s solicitor further instructions as to other matters required, including:

• documents to be examined and marked;
• memoranda to be endorsed;
• undertakings to be given;
• deeds or other documents, including transfers and any relevant undertakings and authorities relating to rents, deposits, and keys, to be sent to the buyer’s solicitor following completion;
• consents, certificates, or any other authorities that may be required to deal with restrictions on any Land Registry title to the property;
• executed Stock Transfer Forms relating to shares in companies directly related to the conveyancing transaction.

The buyer’s solicitor will transfer the sum required to complete to the seller’s solicitor’s client account, as notified in writing on the completion statement or otherwise under the contract. This includes:

• any compensation payable for late completion by reference to the contract rate if either the Standard Conditions of Sale or the Standard Commercial Property Conditions are utilised;
• an in default of notification, as shown by the contract.

If the funds are sent by transfer between banks, the seller’s solicitor will report to the buyer’s solicitor that the funds have been received immediately when aware of their receipt.

Completion

During completion:

• the buyer’s solicitor has notified the seller’s solicitor that the funds are to be held to the buyer’s solicitor’s order; or
• it has previously been agreed that completion is to take place later; and
• any agreement or notification under this paragraph has been made or confirmed in writing.

When completing, the seller’s solicitor undertakes to:

• comply with any agreed completion arrangements and any reasonable instructions;
• redeem or obtain discharges for every mortgage, charge, or other financial incumbrance, so far as it relates to the property which has not already been redeemed or discharged;
• have identified the proprietor of each mortgage, charge, or other financial incumbrance specified, to the extent necessary for the buyer’s solicitor's application to HM Land Registry.

Post completion

The seller’s solicitor undertakes to:

• immediately after completion, hold every completion document to the buyer’s solicitor’s order and not exercise a lien over any of them;
• as soon as possible after completion:
  • confirm to the buyer’s solicitor by telephone, fax, or email the date and time at which completion has taken place;
  • notify the seller’s estate agent or other keyholder that completion has taken place and authorise them to make keys available to the buyer immediately;
•  as soon as possible after completion or by the end of the working day following completion, send written confirmation that completion has taken place and, at the risk of the buyer’s solicitor, send the completion documents to the buyer’s solicitor by first-class post or document exchange;
• if the discharge of any mortgage, charge, or other financial incumbrance takes place by electronic means, notify the buyer’s solicitor that the discharge has taken or is taking place as soon as confirmation is received from the proprietor of the mortgage, charge, or other financial incumbrance.

More information is available in the By Lawyers Sale of Land and Purchase of Land guides.