ABSTRACT
Stipulations by the Standard Conditions of Sale (3rd edn) and Standard Commercial Property Conditions (1st edn):
Unless fixed by the contract, the completion date is 20 working days after the date of the contract, but time is not of the essence of the contract unless a notice to complete has been served.
If the money due on completion is received after 2.00 pm, completion is to be treated as taking place on the next working day, and this means that interest at the contract rate is payable on the outstanding purchase money.
In apportioning any sum, it is assumed that the seller owns the property until the end of the day from which the apportionment is made and that the sum accrues daily at the rate at which it is payable on that day. This commonly relates to the Council Tax or water rates. In the Commercial Conditions, the day of completion is apportioned to the buyer.
It is assumed that such outgoings accrue at an equal daily rate throughout the year and, where any sums to be apportioned are not known on the actual completion day, apportionment is to be made according to the best estimate available. As soon after completion as the amount is known, a final apportionment is to be made and notified to the other party, and any resulting balance paid no more than 10 working days later.
The contract provides a timetable for the dealing with evidence of title and preparation of the transfer deed. The seller must send the buyer evidence of the title immediately after making the contract. The buyer may raise written requisitions six working days after either the date of the contract or the day of delivery of the seller's evidence of title on which the requisitions are raised, whichever is the later. The seller is to reply in writing to requisitions raised four working days after receiving them. The buyer may make written observations on the seller's replies within three working days after receiving the replies. The buyer's right to raise requisitions or make observations is lost after the expiration of the relevant time period. With regard to the transfer deed, the buyer is to send the seller a draft transfer at least 12 working days before the completion date. The seller is to approve or revise that draft and either return it or retain it for use as the actual transfer within four working days after the delivery of the draft. If the draft is returned, the buyer is to send an engrossment to the seller at least five working days before the completion date. The periods of time in respect of dealing with the title and in respect of dealing with the transfer deed may run concurrently. If the period between the date of the contract and completion is less than 15 working days, the time limits are reduced by the same proportion as that period bears to the period of 15 working days. Fractions of a working day are to be rounded down, except that the time limit to perform any step is not to be less than one working day.
Where a party is unable to complete on the appropriate day, condition 6.6 provides that a notice to complete should be served upon the defaulting party and 10 working days is afforded by this condition within which period completion must be effected. If not, legal action of breach of contract can be instituted, and the position here is set out by standard conditions 7.5 and 7.6.
A more ample exposition of the standard conditions of sale is set out by Silverman, F, Standard Conditions of Sale: A Conveyancer's Guide, 6th edn, 1999, Tolley.
