Guide to buying & selling

SETTING OUT

When an estate agent is involved, the agent will write to both parties and their solicitors with the basic information on the deal. You will receive a copy of the particulars. Please check and confirm the information is correct. Where there is no estate agent, your solicitor needs to know the full name(s) and address(es) of the other party or parties to your transaction(s), the identity of their solicitors, the agreed price, and the full addresses of the properties. We will also need to have information on any contents included in the price, or bought or sold as an extra.

INFORMATION

If you are selling, you will be asked to complete some information forms about the property. You have a duty to be fair and honest about the property and any problems with it. If you try to conceal things, it is quite possible that a claim may arise against you at a later date. If you’re buying, your solicitor will be seeking general information not only from the seller, but also the local council and (possibly) various other sources. It is important that, if you feel the need for some specific enquiries to be made, or things you have been told by the seller, that need to be checked and recorded. You should let your solicitor know as soon as possible.

MONEY

If you are selling, your solicitor will check with you approximately how much you owe your lender; and whether you have more than one mortgage. You will want to estimate how much your net proceeds of sale are likely to be, either for your new house or for other expenditure or investment. If you are buying, you need to have your mortgage application submitted as soon as possible. After acceptance of your offer your lender will seek an independent valuation.

THE PROPERTY

We have already mentioned the process of enquiries and searches, which have to be done. Buyers should also consider whether they want their own survey report and if so whether a “Home Buyer’s Report” is all that is needed or whether the property is in poor condition and therefore a full structural survey would be desirable. (if you choose a home buyer’s report and you arrange with your lender that you will both use the same surveyor, this usually results in some saving).

DOCUMENTS

This is the solicitor’s principal job. If you are a seller, you will already have been asked where your deeds are and (if there is a mortgage) your lender and account number. The sooner deeds are obtained, the sooner your solicitor can:-

• prepare the agreement for sale and send it out to the buyer’s solicitors;
• alert you to any legal difficulties which may arise in connection with your “title” to the property, (fortunately cases of difficulty are very few and far between)

If you are buying a property then the seller’s solicitor will be asked for the agreement and all the other paper-work that proves ownership.

PRE-CONTRACT MEETING AND SETTING THE DATE

Quite often a “chain” of transactions is involved with several families all needing to buy and sell – and move house – on the same day. When all the paper-work has been assembled your solicitor will arrange a meeting to go through everything and explain it fully. (this can be done by letter or over the phone if you do not live/work locally, although it is quicker and easier to do it in the office). By this time everyone in the “chain” should be doing the same thing with their solicitors. At this stage it is helpful if you can provide a provisional moving date. Please do not fix a date finally at this stage! At this pre-contract meeting all the paper-work will be signed and you will be ready to commit yourself to a legally binding agreement.

THE CONTRACT

When a date is finally agreed, everyone “exchanges” agreements and you are legally committed to go through with the “deal” – whether buying, selling or both! At this stage buyers need to pay (usually) 10% of the purchase money by way of deposit. You will be asked at the pre-contract meeting for any difference between the deposit received on your sale and that due on your purchase.

PRE-COMPLETION

Most of the work in this phase is “solicitor’s work” – things such as finalising the form of documents : checking how much you owe on your existing mortgage and requesting the money on your new mortgage; confirming that the information relating to the property received before “exchange” is still valid and carrying out some further final searches of public registers.

There are some practical things for you to do in this period too, such as:-

Sellers

• organising final meter readings for electricity, gas etc.
• organising a final telephone account.
• arranging with buyers to hand over keys.
• arranging removals; notifying buyers what time you expect to be “out”
• organising apportioned accounts for council tax and water rates.

Buyers

• signing new supply agreements for electricity, gas etc
• arranging to “take over” the telephone
• arranging with sellers to receive keys
• arranging removals ; notifying sellers what time you want to be “in”.

Shortly before the date fixed for moving your solicitor will send you a “financial statement”. This will set out all the financial information on your transaction(s) and will include details of legal fees, VAT and any expenses for example searches, stamp duty (if any) and land registry fees to be paid. If the financial statement shows there is money due to be paid to complete the transaction, we normally ask you to pay this sum by way of a bankers draft or by bank transfer at least one day prior to completion so that we have cleared funds in time for completion. If the completion statement shows money is due to you, the balance should be sent out to you no later than the next working day after completion.

COMPLETION

Assuming all of the preparations have gone well, we will not bother you! You will have enough to do organising your removals! We will be arranging transfers of money, finalising and dating all the documents; and paying off the mortgages you have told them about. Please make sure you remember to cancel your standing order payments. If you do not have a mortgage, you’ll need to cancel the insurance on your old house.

FEET UP

You have moved in – now you can relax, but we have still got things to do. If you are buying, there is still “finishing off” work to do; stamp duties to pay; registration of title (your ownership right being recorded on the public land registers) to deal with. Then the deeds will be sent to your lender (if any) or otherwise we will seek your instructions on whether to keep them in our safe custody, or send them elsewhere for you.

For further information, or to discuss your case, email jitesh@linkslegal.co.uk


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