When selling a property, you will need to have Form TR1 filled in for completion day.
Otherwise, your conveyancer will not be able to legally transfer your property to the buyer. Even if they receive the money.
This is because your conveyancer uses Form TR1 to create the deed of transfer. This needs to be sent on to the buyer and then on to HM Land Registry to legally transfer the ownership of the property.
If no TR1 Form has been completed by this point, the property sale will not be able to go ahead.
What is meant by completion day?
Completion day is when final payments go through, and buyers take possession of their new property.
The day is normally chosen just prior to the exchange of contracts and tends to be set for one to two weeks afterwards.
On completion day, the buyer’s conveyancer will send your conveyancer the money still owed for the property, and in return your conveyancer will send them a deed of transfer.
This document is used to transfer the ownership of a property at the Land Registry
When do you usually complete the Land Registry TR1 Form?
Typically, you will be asked by your solicitor to complete Form TR1 later on in the stages of conveyancing. This normally means doing it shortly after the exchange of contracts, and before completion day.
There are some parts of the form you should leave blank, including the date,. This so your conveyancer can fill this in on completion day. Your conveyancer should explain all of this to you.
Note that if you lie for the purposes of personal gain on a TR1 form you can be charged with fraud. This carries a maximum prison sentence of ten years, or an unlimited fine!
What is included in Form TR1?
The TR1 form is divided into 12 sections, each asking for a different detail about the property transaction.
It is split down the centre, with the left-hand side offering directions on how to fill in the form, while the right-hand side is occupied with a series of boxes with room for your answers.
Sections 1-7: The Property and the Parties
These sections are relatively simple to fill in, focusing on the details of the property itself and the parties involved in the transaction.
The first section calls for the properties Land Registry title number, the second for the properties address, and the third for the transaction’s completion date.
Remember, this is completion day, not the day the rest of the form is filled in. And so you should not write anything here.
Instead, your conveyancer will fill this in when the sale completes. Eventually, they will know the completion date for certain.
Section four and five deal with the transferor and the transferee. Four requires the full name of the seller or sellers, while five requires the full name of the buyer or buyers. \
If either party is a UK incorporated company or a limited liability partnership rather than an individual person, sections four and five require the company’s registration number in addition to a name.
When a UK property is bought or sold by an overseas entity, section four or five of the Land Registry TR1 Form requires you to write its territory of incorporation or formation. You will also be asked to confirm the companies house overseas entity ID including prefixes, and if the company operates in the UK, its place of business.
The next section, six, asks for the transferee or transferees intended address. This is often the address of the property sold, although this is not always the case. It may be a second home, or a buy to let investment property. A transferee can list up to three addresses, of which one must be a postal address. When there is more than one transferee, each is allowed three addresses.
Section seven requires no input. It is a standard clause which transfers the property and is therefore relevant in all cases where Form TR1 would be used.
Sections 8-11: The Transaction
Sections 8-12 focus on the details of the transaction itself. This includes how much is paid, the extent of the title guarantee being transferred, and how the property is to be owned. Some of these elements are a bit more complicated than the simple sections at the start of the form.
The eighth section is for confirming the consideration, or amount paid, for the property. If the property was bought, the amount the seller has received must be written in both numbers and letters. Any currency paid other than Sterling must also be detailed.
Alternatively, If the property is a gift, there is a tick box for this. As a third option, if the property was purchased for any consideration other than money, a separate box must be ticked. The consideration must be detailed alongside any relevant documentation.
Section nine is about the title guarantee. This refers to how far the seller can promise that there are no financial charges or encumbrances held against the property. A title guarantee is either full or limited.
If a seller can promise the absence of charges, they will always sell the title with a full guarantee. This is because they can reasonably trust the property which they own is free of charges.
Alternatively, a Limited Title guarantee is normally used when an executor of a will is selling a property. This is because they cannot completely confirm that nothing is held against it. Instead, this merely promises that they have not allowed or created any such charge.
The next section, section 10, is called the declaration of trust. In this section, the transferees must describe how they intend to own a property. This can be as joint tenants, each owning the whole property, or as tenants in common, each owning a share. Our guide on joint tenancy and tenancy in common explains more.
Section 11, referred to as the additional provision, is for any new restrictive covenants or agreements between the buyer and seller. This can range from bans on business and construction to requirements to grow certain crops in the garden.
The Execution
The final section, 12, is referred to as the execution. By signing this, the transferor executes, or carries out, the TR1, and allows their conveyancer to create a deed of transfer to transfer of the property to the new owner.
If the transfer contains any covenants or declarations which bind the transferee, they must also sign here before the form becomes valid.
Once the execution is signed the seller or transferers conveyancer can proceed to transfer the property as soon as payment has come through.
Summary
A completed TR1 form is vitally important to ensuring a property transaction proceeds.
Your conveyancer uses this form to create the deed of transfer, which legally transfers the property from you to the buyer.
If you have not completed and supplied this form by completion day your property transaction will not be able to proceed. This could potentially derail your sale.
Because of this, conveyancers will generally have you complete the TR1 form shortly after the exchange of contracts.
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Very useful article. Three cheers
Thank you Krishan!