Completion monies—the SCPCs
Completion monies—the SCPCs

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

  • Completion monies—the SCPCs
  • 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?

How should the money be transmitted?

Most contracts relating to commercial property incorporate either the second or third editions of the Standard Commercial Property Conditions (Second Edition and Third Edition respectively). Condition 8.7 of the Second Edition provides that the buyer must pay the completion monies by direct credit and any deposit paid must be unconditionally released. Condition 1.1.1(g) of the Second Edition defines ‘direct credit’ as ‘a direct transfer of cleared funds to an account nominated by the seller's conveyancer and maintained by a clearing bank’.

In contract, condition 9.7 of the Third Edition provides that the completion money must be paid by 'electronic means in same day cleared funds from an account held in the name of the conveyancer at a clearing bank to an account in the name of the seller's conveyancer'. As per the Second Edition, any deposit held by a stakeholder is to be unconditionally released.

Neither the Second Edition nor the Third Edition permits payment by bank draft or cheque.

The Precedent sale and purchase contracts (see, for example, Contract for sale—freehold, vacant possession incorporating the Standard Commercial Property Conditions (Third Edition)) suggest 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

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