The Conveyancing Committee reminds practitioners that General Condition 20 of the General Conditions of Sale 2023 (Revised) Edition governs the provisions that apply where completion of a conveyancing transaction is to take place otherwise than at the office of the Vendor’s solicitor.

Subject to the Vendor’s solicitor’s compliance with the terms and conditions specified in General Condition 20, Completion takes place, and the Vendor’s solicitor’s entitlement to release the purchase moneys arises, prior to receipt by the Purchaser’s solicitor of the completion documents. General Condition 20 (c)(i) provides that the mode of dispatch of the completion documents is at the sole risk of the Purchaser’s solicitor.

It has come to the attention of the Conveyancing Committee that Purchasers’ solicitors are, in some cases, remitting the balance of the Purchase Price to the Vendor’s solicitor prior to Completion on terms such as:

“the funds are to be held on trust pending receipt of completion documents”

Such a condition cannot be imposed unilaterally and, unless agreed by the Vendor, is inconsistent with the allocation of risk contemplated by General Condition 20.

It purports to make the Vendor’s solicitor’s entitlement to release the purchase moneys conditional on the Purchaser’s solicitor’s receipt of the completion documents, notwithstanding the express terms of General Condition 20. The Vendor is not obliged to accept such a material alteration to the contractual Completion arrangements unless an amendment to General Condition 20 has been expressly agreed in writing, whether by special condition in the Contract for Sale or otherwise.

Practitioners are reminded that the Law Society's General Conditions of Sale should not be altered or deleted except by express agreement between the parties.