REP 7 - Completion Process

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Questions and Answers

What is the fundamental concept of legal completion?

The process of negotiating the sale terms

The final decree of property ownership from the court

The exchange of keys and title deeds for payment (correct)

The transfer of property ownership based solely on contract

Who typically attends a legal completion involving CPF and mortgage?

Only the vendor's solicitor and two representatives from the banks

An unlimited number of parties depending on the complexity of the sale

Only the vendor and purchaser

A maximum of six distinct parties including solicitors (correct)

Where is legal completion typically held if the property has only a CPF charge?

At the purchaser's solicitor's office

At the developer's solicitor's office

At the vendor's discharging CPF board solicitor's office (correct)

At the vendor’s solicitor's office

What timing is most typical for completing legal transactions?

Late afternoon between 3 and 6 p.m. Signup and view all the answers

What essential document does the vendor need to sign during the completion process?

Inland Revenue Declaration forms Signup and view all the answers

If a property is not subject to any CPF charge or mortgage, where does completion take place?

At the vendor's solicitor's office Signup and view all the answers

Which role can solicitors take during the completion process?

Solicitors can represent multiple parties simultaneously Signup and view all the answers

What assumption is made about the completion parties in a typical legal completion scenario?

Parties can agree on the completion time and location Signup and view all the answers

What must the vendor provide to prove everything is in order before legal completion?

Payment of property tax and maintenance evidence Signup and view all the answers

What document do the vendors discharging CPF board solicitors need to obtain?

Application to notify total discharge of charge Signup and view all the answers

What is necessary for vendors discharging ModGagee solicitors on completion day?

Obtain an updated redemption statement Signup and view all the answers

What is a responsibility of the vendor solicitors regarding stakeholder monies?

Release the stakeholder monies Signup and view all the answers

What must purchasers accomplish in the property transaction process?

Sign the mortgage document and payment orders Signup and view all the answers

What is included in the responsibilities of purchasers charging CPF board solicitors?

Obtain the CPF board's signature for the charge application Signup and view all the answers

Which document is essential to discharge the charge on the property?

Discharge application form Signup and view all the answers

What do vendor solicitors need to issue checks for during the completion process?

Payment of legal fees and registration fees Signup and view all the answers

What does the purchaser's cash order or cash difference need to be paid into?

Purchaser solicitor's conveyancing account Signup and view all the answers

Which step is necessary for vendors discharging ModGagee solicitors related to bank funds?

Obtain updated redemption statement Signup and view all the answers

What is one of the responsibilities of the purchaser's charging CPF solicitors after completion?

Stamp the mortgage and register discharging documents Signup and view all the answers

Who is responsible for delivering the title deed to the purchaser's mortgagee solicitor?

Purchaser's charging ModGagee solicitors Signup and view all the answers

What must the purchaser's solicitors do after receiving the necessary documentation?

Send an application for the owner-occupier tax status Signup and view all the answers

What item must the new landlord collect from their purchaser solicitor's office?

Tenancy agreement Signup and view all the answers

Which document is NOT mentioned as part of the responsibilities during completion?

Mortgage repayment schedule Signup and view all the answers

What is the first action usually performed by the purchaser's solicitors during legal completion?

Request the cashier's order from the CPF board Signup and view all the answers

Which document must the vendor provide after receiving the cashier's orders from the purchaser?

Discharge documents from the CPF board Signup and view all the answers

What must the purchaser's solicitors prepare regarding fees during the transaction?

Checks for registration fees and stamp fees Signup and view all the answers

What is necessary for the purchaser before acquiring the mortgage loan?

Obtain a cashier's order from the CPF board Signup and view all the answers

Who is responsible for conducting updated searches to ensure the title is in order?

The purchaser's solicitors Signup and view all the answers

What is the primary function of the vendor's solicitors during the completion process?

Receive cashier's orders and handle discharge documents Signup and view all the answers

What amount is indicated as the mortgage loan given to the purchaser?

$650,000 Signup and view all the answers

Which actions are NOT performed by the purchaser's solicitors in this transaction?

Release mortgage loan funds to the purchaser Signup and view all the answers

What are solicitors instructed to prepare for the CPF board and bank's lawyers?

Checks for registration and stamp fees Signup and view all the answers

What is the final action taken by the vendor after receiving the cashier's orders?

Discharge the mortgage with the bank Signup and view all the answers

What is the vendor required to collect the day after completion?

A cashier's order for $40,000 plus $27,500 Signup and view all the answers

What must the vendor solicitor do regarding the discharging documents?

Encrypt the documents and grant access to the CPF board's charging solicitor Signup and view all the answers

What should happen to the letters sent to the tenant?

They should notify the tenant about the change of rent payment location Signup and view all the answers

When must the vendor's discharging ModGagee solicitors deliver the cashier's orders?

By 10 a.m. the day after completion Signup and view all the answers

What is the role of the CPF Board Solicitors after completion?

They register the documents and manage ownership transfers Signup and view all the answers

What does the purchaser's solicitor do with the original documents?

They hand them over to the CPF Board Solicitors Signup and view all the answers

What must happen after the documents are registered?

The vendor must inform the tenant of the new ownership Signup and view all the answers

What is included in the pile of documents the vendor receives?

All documents exchanged at completion Signup and view all the answers

Who is responsible for informing the final registration of discharge documents?

The vendor's discharging solicitors Signup and view all the answers

What type of documents does the vendor solicitor have to e-file after completion?

Notice of transfer to notify inland revenue Signup and view all the answers

Study Notes

Legal Completion Process

Legal completion is the final settlement of a business transaction, such as conveying property. This involves exchanging keys, title deeds, and the agreed-upon sum of money.
Legal completion involves multiple parties when a property is subject to a CPF charge and mortgage (6 parties). These parties could be represented by fewer solicitors, depending on the individual circumstances.
Completing the transaction at the vendor's discharging CPF board solicitor's office is required if the property only has a CPF charge.
Completing at the vendor's discharging mortgage solicitor's office is required if the property is subject only to a mortgage.
If the property has neither a CPF charge or a mortgage, the completion occurs at the vendor solicitor's office.
If the title is not yet issued by the developer, completion is at the developer solicitor's office.
Completion typically occurs during the late afternoon between 3 pm and 6 pm, although both parties must agree as to the exact time.
Vendors, CPF board solicitors, mortgage solicitors, and purchasers all have specific tasks to complete before and during the completion process.
The completion process typically involves numerous documents and payments, including but not limited to, payment of property tax and transfer of the property.
Updated searches and bankruptcy checks are completed to verify the title's order and that neither party is bankrupt.

Parties Involved

Vendor solicitors (can act for others)
Vendor discharging CPF board solicitors
Vendor discharging mortgage solicitors
Purchaser solicitors (can act for others)
Purchaser charging CPF board solicitors
Purchaser mortgage solicitors
Developer solicitors (If applicable)

Preparations for Legal Completion

Vendors must sign the transfer documents, provide payment for property tax and other fees, and provide any related tenancy agreements.
Vendor CPF charge solicitors issue invoices, prepare a letter to the vendor solicitors, and obtain a discharge document.
Vendor Mortgage solicitors need an updated redemption statement, and issue invoices for legal fees and prepare a letter too.
Purchasers must sign the mortgage documents (if applicable), and make cash payment to the purchaser's solicitor, who may hand over the amount or issue a cashier's order to the purchaser.

Purchasers' solicitors tasks

Obtain confirmation/registration, and give necessary documents to the CPFboard solicitors.
Hand over the documents to the CPF board solicitors, who register them.
Obtain the tenancy agreement.

Vendor's solicitors tasks

Sign necessary documents
Receive payment for the property (e.g. various cashier’s orders)
Deliver title documents to purchaser's solicitors.
Notify, in writing, the change of ownership to the inland revenue.

Completion Procedures

Each party has a set of tasks to complete, including receiving, signing and delivering documents, and arranging the release of funds. All parties in the transaction must agree on a single completion date.

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Description

This quiz explores the legal completion process involved in property transactions. It covers key aspects such as the roles of different parties, completion locations based on financial arrangements, and timing of the completion. Test your understanding of how legal completions are conducted in real estate.