Conv 10

Front 1

Acting for the seller:

What does it mean to 'take instructions' from the seller?

Back 1

Officially it means meeting with the client for an initial interview to take all details pertaining to the sale (p. 60 for list of what to cover)

However, most solicitors don't do an interview and will use a doc sent to customer to fill in to get details

Also, admin staff may take brief instructions over phone.

Front 2

Acting for seller:

An estimate of the solicitors costs may also be given over the telephone or via the companies website before being formally sent to the seller

True or false

Back 2

True

Front 3

Acting for seller:

What is it important to set out to the seller right at the outset when taking instructions?

Back 3

The costs

They must know how much process will cost, with a breakdown of how it's calculated (basically a quote - Excel)

Front 4

Acting for seller:

What 3 costs will the seller have to pay in this process?

Back 4

1. Estate agent fees (usually paid through solicitor)

2. Solicitors fee

3. Disbursements

Front 5

Acting for seller:

Is the solicitors fee usually a fixed fee for the process?

Back 5

Yes

Front 6

Acting for seller :

What 3 financial calculations must you make on behalf of seller when acting for them?

Back 6

Do they have enough to cover the cost of their transaction, meaning:

1. Mortgage redemption

2. Legal expenses & estate agent

3. Any related purchase price cost

Front 7

Acting for the seller :

What stage of the Law Society Conveyancing Protocol is 'taking instructions'?

Back 7

Stage A of the protocol

Front 8

Acting for seller:

What are the first 6 steps to take? Give brief description of each one.

Back 8

1. Open file:

Hard copy = info sheet inside

Comp copy = instructions doc (ie new client info form 'KYC' Docs) /quote

Send new client form to accounts to open account

2. Estate first letter:

Request memo of sale & EPC (if havent already been sent)

3. Other side first letter:

We are instructed

We will sent contract pck in due course

4. Client:

CCL

TOB

QUOTE

FFC

PIF

5. Any required courtesy letter to 3rd party who introduced client (if necessary)

6. Move on to getting the title, and drafting contract.

Front 9

What are the 6 things that make up instructions from a client?

Back 9

1. Signed and dated CCL returned to firm

2. Signed and dated TOB returned to firm

3. Provision of ID

4. Paid initial monies on account

5. Completed sale/purchase questionnaire

6. Signed and dated and returned to firm: prop info form/leasehold info form/ffc form (if sale)

Note: all these 6 are listed at bottom of CCL as next steps for client to take, it will also say that they will constitute their instructions.

Front 10

What is the main document that constitutes the clients instructions?

Back 10

Signed TOB

Front 11

Under the Protocol, what is the taking of instructions stage known as?

Back 11

Stage A

Note: The Protocol lists the advisory steps to take in this stage, and where the protocol is adopted the protocol stage A doc should be referred to.

Front 12

For the Purchase of a property:

The solicitor will need to take instructions from client

This stage is called stage A under protocol

True or false

Back 12

True

Front 13

What is something extra that needs to be covered when taking instructions from a Buyer as opposed to seller?

Back 13

How the purchase is going to be funded - ie both deposit and mortgage if applicable

Front 14

How does solicitor obtain funding details from the buyer when taking instructions?

Back 14

Sends them a source of funds form with the Client care letter (for deposit, or if totally cash purchase then whole purchase)

And purchase questionnaire that is send with CCL will ask about mortgage

Front 15

What are the two types of fees that a buyer will have to pay?

Back 15

1. Solicitors fees (plus Vat)

2. Disbursements

Front 16

Name the 4 types of disbursements in purchase transaction

Back 16

Search fees

Land reg fees

Stamp duty

Telegraphic transfer fees (TT) - sending monies at end of transaction

Front 17

Usually solicitor will ask for moneys on account at beginning of purchase transaction, what does this cover?

Back 17

Searches

Front 18

What must the client be advised of at the beginning of purchase transaction regarding the deposit?

Back 18

That it will need to be paid at exchange

Solicitor must also discuss how this will be funded.

Front 19

For a residential purchase funded by a mortgage, under the UK Finance Mortgage Lenders Handbook, what does it stipulate regarding the source of deposit funds

Back 19

Solicitor must ascertain source of the deposit funds and advise lender if it is coming from clients own sources

Front 20

How does the solicitor ascertain where deposit monies are coming from?

Back 20

By sending source of funds form with CCL

Front 21

Purchase transaction:

If deposit monies where coming from a third party like mum and dad, and the money was a:

Loan

Or a

Gift

In each case, ie loan or gift, what requirements will need to be met?

Back 21

Loan =

1. Loan may need to be officially registered against the property

2. Must be disclosed to lender

Gift =

1. Third party (mum and dad) need to sign declaration stating:

a) third party has no interest as consequence of gift

B) it is non repayable

2. Must be disclosed to lender

Front 22

If a third party ie parents were providing monies to help with purchase, what is the third way that they may be providing this money.. Ie not as a gift, not as a loan but as...

Back 22

With the intention of becoming co-owner

Front 23

Whenever there's a mortgage in olved in a purchase, what must always be consulted?

Back 23

UK Finance Mortgage Lenders Handbook