Transfer of equity. Wording on TR1 form

nnnatural

Hi All

Ex is buying out my share of a flat.

Received a copy of the TR1 form from their solicitor to be signed by both of us.

The wording entered by the solicitor seems slightly dubious to me as it suggests I have received money when I have not yet received anything - is this normal?

Box 8 consideration, says something along these lines:

(X) insert other receipt as appropriate:

[name] has received the sum of £[amount] cash together with one half share in the sum of £[amount] of the Transferors mortgage with [Mortgage provider] as payment for the Property

When I questioned it, the solicitor said this:

I understand where they are coming from but basically you both have to sign it “before” completion and then what happens is that I send the money on the agreed completion date and I date the Deed on that date. At present you are both signing “in anticipation” of the event (i.e. completion). The Deed is not valid until it is dated.

This doesn't make sense to me. Surely this should be worded "shall receive .... on the date of completion".

I trust my ex 100% and I was hoping to not have to pay a solicitor to look at this form before signing and proceeding with the transfer. Is this too naive?

ValHaller

Advance signing of deeds is normal - but it is normally managed by solicitors. If you had a solicitor, he would hold the deed on your behalf against funds being received. This would all be governed by protocols between solicitors and by solicitor client protocols.

So to some extent, you are vulnerable here, because you don't have the protection of any professional relationship with that solicitor. I am thinking that you could highlight your ex's solicitor's response and say that you would be happy to accept this if he or another solicitor in his office were to act pro bono as your solicitor in ensuring the transfer of funds. Whether that would work or not, I am not sure.

kingstreet

You either trust the solicitor appointed by your former partner to deal fairly with you, or you appoint an independent solicitor to act for you, at your expense.

nnnatural

So to some extent, you are vulnerable here, because you don't have the protection of any professional relationship with that solicitor. I am thinking that you could highlight your ex's solicitor's response and say that you would be happy to accept this if he or another solicitor in his office were to act pro bono as your solicitor in ensuring the transfer of funds. Whether that would work or not, I am not sure.

Their response was not actually sent to me, but I think their position is that it's up to me. I suppose it would be helpful if there were ways of ensuring you are protected without paying extortionate administration fees. Just seems odd to sign something which is not actually the case, that could easily be worded more sensibly.

You either trust the solicitor appointed by your former partner to deal fairly with you, or you appoint an independent solicitor to act for you, at your expense.

Well I trust the seller, hence I was hoping to not get a solicitor involved. But I have no reason to trust the solicitor in the slightest as I do not know them and I haven't employed them myself.

Just how official is this form? If there were a dispute, would the seller's solicitor need to be able to prove I had received funds?

G_M

Many decades ago, what happened was that the two solicitors, and the two clients (buyer/seller) all got together on the day of Completion in Mr Maggregor's office, The High street, Dickenstown at two PM.

The bankers draft was handed over, the documents (equivellant of TR1) were signed and handed over in return.

Since then, things have changed

1) the Land Registry records all transactions electronically and
2) no one attends Completion in person

Solicitors now have strict Codes of Conduct and professional standards, and so we leave it safely in their hands to 'hold' the signed documets untill the date/time of Completion.

(same happens with Exchange of Contracts - each party signs the undated contract in advance and gives it to his solicitor).

Additionally the TR1 is actualy a Land Registry form. It is what is sent to the LR after Completion to instruct them to update the Title they hold electronically for the property.

So by the time the Land Registry receive the TR1, the money will have been received - hence the wording on the form.

Yes - you have to trust the solicitor -but that is the case with each of the thousands of property transactions that takeplace each month.

The alternative is to insist on the Dickensian process. Go to the solicitor's office on the day of Completion, wait till you have evidence of the money transfer, and then sign/hand over the TR1. You would be within your rights to insist on this (though would receive some dissuasion and ridicule)

nnnatural

The alternative is to insist on the Dickensian process. Go to the solicitor's office on the day of Completion, wait till you have evidence of the money transfer, and then sign/hand over the TR1. You would be within your rights to insist on this (though would receive some dissuasion and ridicule)

Thanks for your reply, and for the history lesson. Slightly black and white view - I would have thought an alternative would be to ask the solicitor to enter a more logically worded phrase into that field on the form seeing as it's within their control, but anyway it's besides the point - I really just wanted know if it would be a problem and if I should bother to protect myself further in this case (without being ridiculed).

G_M

nnnatural wrote: »

I really just wanted know if it would be a problem and if I should bother to protect myself further in this case (without being ridiculed).

Hope you didn't think I was ridiculing you? :shocked:

nnnatural

Hope you didn't think I was ridiculing you?

I only really object to being ridiculed in person by a dickensian solicitor. No offense taken.