Completion monies—standard conditions of sale (5th edn)
Completion monies—standard conditions of sale (5th edn)

The following Property guidance note provides comprehensive and up to date legal information covering:

  • Completion monies—standard conditions of sale (5th edn)
  • How should the money be transmitted?
  • What happens if the money arrives after the time specified in the contract?
  • When is a party ready, willing and able to complete?
  • How much is payable?
  • What if there is a mortgage to be redeemed and discharged?
  • Is it safe to rely on the usual undertaking to discharge a mortgage following Patel v Daybells?
  • What other precautions might be taken?

How should the money be transmitted?

Under Standard Condition of Sale (SC) 6.7 the buyer must pay the completion monies by direct transfer of cleared funds to an account nominated by the seller's solicitor and maintained by a clearing bank and any deposit paid must be unconditionally released. Bank drafts and cheques are not permitted. The LexisPSL standard contract suggests the option of adding '[or by such other means as the Seller’s Solicitors and the Buyer’s Solicitors may agree (and the Seller and the Buyer respectively give their solicitors authority so to agree)]' and this can be used depending on the individual circumstances of the sale.

What happens if the money arrives after the time specified in the contract?

Under SC 6.1.2, if the money due on completion is received after 2pm, completion is to be treated, for the purposes only of SC 6.3 (apportionments) and 7.2 (compensation on late completion), as taking place on the next working day as a result of the buyer's default.

The only exception to this is where the property is to be sold with vacant possession and the seller has not vacated the property by 2pm on the day of completion (SC 6.1.3). The definition of a working day (SC 1.1.1(m)) does not apply to SC 7.2 and so every day's delay after