During completion, receipts for grounds rent and service charge are handled how?

During completion, receipts for grounds rent and service charge are handled how?

• A. They are ignored
• B. They are apportioned and the buyer reimburses the seller for the period of occupation
• C. The seller pays all charges to date
• D. The buyer pays all charges in advance

Answer: (B)

Outgoings tied to a lease, such as ground rent and service charges, are apportioned at completion to reflect who occupied the property and when. The seller is in occupation up to the completion date and will have paid charges for that pre‑completion period. From completion onward, the buyer is responsible. To settle accounts, the buyer reimburses the seller for the portion of those charges that relates to the period of occupation before completion. This is typically shown on the completion statement and before finalising the deal the seller may provide receipts for the charges paid. The other options ignore this period-by-period adjustment or assign all costs to one party, which wouldn’t fairly reflect the actual occupancy.

Outgoings tied to a lease, such as ground rent and service charges, are apportioned at completion to reflect who occupied the property and when. The seller is in occupation up to the completion date and will have paid charges for that pre‑completion period. From completion onward, the buyer is responsible. To settle accounts, the buyer reimburses the seller for the portion of those charges that relates to the period of occupation before completion. This is typically shown on the completion statement and before finalising the deal the seller may provide receipts for the charges paid. The other options ignore this period-by-period adjustment or assign all costs to one party, which wouldn’t fairly reflect the actual occupancy.