Purchase and loan transactions not completed
contemporaneously8.24 In
the majority of cases where a purchaser is financing the purchase by means of
a secured loanthe
two transactions are completed together. There are, however, cases where settlement
of the loantransaction
is delayed but the purchase is duly settled by means of temporary bridging finance.
It issuggested
that these transactions should be dealt with as outlined in the following sections.Same solicitor acting for purchaser
and lenderWhere
the same solicitor is acting he should, on completion of the purchase, submit
an application forregistration
of the purchaser’s interest - Form 1. In due
course, the standard security can be lodged witha
Form 2 and an inventory Form
4 in duplicate, and the Keeper will complete registration in respect
ofboth applications.
The reduced registration fee for a standard
security will not apply. The twoapplications must be received together
for the reduced fee to apply. The standard security in this caseshould be framed in
terms of section 15(1).
The appropriate title number will be found
on theduplicate
inventory returned by the Keeper in acknowledgement
of the Form 1 application.
Thestandard
security may, of course, be prepared as part of the purchase transaction, the
security subjectsbeing
described according to Sasine practice. In
this case the Keeper will still accept
the standardsecurity
for registration provided the title number is clearly marked on it, preferably
on the top of thefirst
page. It is not sufficient to mark it on the backing as that is not part of the
deed.Separate
solicitors acting for purchaser and lenderWhere
the loan transaction is going to be completed before the land certificate is issued
the lender’ssolicitor
proceeds by examination of the Sasine titles. If the title deeds are still required
by the lender’ssolicitor
when the purchaser is in a position to apply for registration of his interest,
the purchaser’sapplication
can nevertheless proceed, the title deeds still in the lender’s hands being
marked on theinventory
Form 4 ‘to follow’.Discharge of outstanding heritable
security8.25 Reference
has already been made to the discharge of an outstanding heritable security. Wherethis discharge relates entirely to
the interest being acquired by the purchaser and accompanies theapplication for registration
of the purchaser’s interest and is listed
on the inventory Form 4
then,although
strictly speaking it should be recorded in the Sasine Register, the Keeper will
on registeringthe
purchaser’s interest give effect to that discharge although it contains no
warrant of registration noris
accompanied by an application for registration. The discharge will not be recorded
in the SasineRegister
at all. The foregoing applies equally to a deed of disburdenment, a discharge
of an ex facieabsolute
security or a reconveyance by an ex facie absolute
proprietor to the proprietor in reversion,provided
that in each case the deed relates solely to the interest acquired by the purchaser.Discharge not available at settlement8.26 Where the discharge
is not available at settlement, on being
subsequently submitted to theKeeper
it should be accompanied by an application for registration Form
2 signed by, or on behalf of,the
seller together with an inventory Form 4 (in duplicate)
listing the discharge. The letter of obligationgranted
at settlement should include an obligation to deliver to the purchaser’s
solicitor the executedand
completed discharge, the completed and signed Form
2 and the inventory Form 4 in duplicateand a cheque in favour of the Registers
of Scotland for the registration dues. The purchaser’s solicitor