Does The TR1 Form Record Every Payment Made By The Purchaser To The Vendor?

I appreciate that the TR1 will record the 'purchase price' but will it definitely include details of other payments made by the purchaser to the vendor over and above the purchase price?

6 Answers

No, just the purchase price. The purchase price though should be the full amount paid even if paid in stages (for example if you pay the vendor £100,000 through 5 payments of £20,000 the TR1 should show £100,000). It will not show the price for ancillaries such as contents, fixtures & fittings or indemnity policies.

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Thank you very much to the guest from www.notaryexpress.co.uk who kindly replied to my original question. I hope you don't mind if I ask a follow-up question. I'm investigating a freehold purchase that look place several years ago. The purchase price was £30,000 which was listed on the TR1 form but an additional payment of £40,000 for other items was also made by the purchaser to the seller but this item is not listed on the TR1 form. There are 12 conditions of the sale listed on the TR1 form but the additional £40,000 payment is not mentioned (although it would have gone to the vendor). The only mention of money changing hands is the £30,000 purchase price. There is also a box to tick on the TR1 form for 'other receipt' but, in this instance, the box is unticked. This still looks suspicious to me but are you saying this is OK?

How do you know an additional £40k was paid for other items and what were these other items? It sounds slightly suspicious. There was a time when the stamp duty charge band was up to £30k whereby stamp duty would have been 0%....... it is however unlikely that a future purchaser would be responsible for unpaid tax which was the responsibility of the previous owner.

www.pwpservices.co.uk

Thanks to www.pwpservices.co.uk for your answer.

The TR1 form that I'm referring to relates to the transfer of a freehold for a block of flats rather than conventional house sale. The freehold was purchased by the flat owners of the block but one flat owner insisted on doing all the negotiation with the seller on his own. That person told the flat owners that the total money to be paid to the seller would be £70,000 (£30,000 purchase price + £40,000 service charge arrears). Flat owners then paid the solo negotiator £70,000, some or all of which was transferred to the seller. I'm an amateur in these matters but I think it's very odd there's no mention of the £40,000 service charge arrears payment in the 12 conditions of sale on the TR1 form and the only mention of money transferred is the £30,000 purchase price. As mentioned earlier, the 'other receipt' box on the TR1 form is also unticked.

I see, you wouldn't usually see a service charge arrears noted in the Transfer Deed but there should be a receipt from the freehold landlord acknowledging this payment or the service charge accounts reflecting that this payment had been made- simplest solution may be to write to the former freeholder to get confirmation if there is a concern.

www.pwpservices.co.uk

Thanks again www.pwpservices.co.uk for your answers and advice.