Most property transactions in the United Kingdom involve the following stages, whether you are a buyer or seller.
The Negotiation Process
As with all property negotiations they have to be handled with great skill and care. We can do all the negotiation process for you, in order that you gain the best purchase price and that all your budgeted plans are kept under control. We will always be in constant contact with you as soon as we have any information concerning the purchasing process.
The negotiations of the sale must always be made subject to contract and, if a survey is involved, subject to survey so as to avoid the possibility of unintended exchange of contracts which will be legally enforceable. If structural problems emerge, the price can be re-negotiated. If the problems prove serious, you can still withdraw from the transaction, prior to formal exchange of contracts.
Exchange of Contracts
Before you exchange contracts (buyer), you should not exchange until the following points have been dealt with:
• You have received a structural survey.
• If the purchase is dependent on outside monies, you have received (and formally accepted) a satisfactory mortgage offer from a bank, building society or other lender.
• You are satisfied with all Local Authority and other searches dealing with planning and any other matters that might affect the property.
• You have reported the outcome of our preliminary investigations into the property, and all other enquiries affecting your final decision to proceed.
• The contract papers is approved and dates agreed between you and all other parties involved for the completion process to continue.
• You are satisfied that any list of contents, fixtures and fittings in the property which you are buying is correct.
• Appropriate arrangements have been made for paying the deposit and providing all the money needed on the completion date. This is when the binding commitment is made.
On exchange of contracts a deposit (normally of 10%) is payable by the buyer to the vendors solicitor.On the date scheduled for exchange, this money must be available.
Insurance
Once contracts have been exchanged, the transaction must be completed on the agreed date.It is important that you check the insurance for a freehold property, to cover the rebuilding cost (not the price you will pay for it). In the case of leasehold properties the landlord usually already affects the insurance and no action is then necessary by a buyer on exchange of contracts.
Before Completion
There are a few matters that need to be investigated during the intermediate stage:
• Notice must be given to the relevant authority of the buyer's responsibility to pay Council Tax after completion.
• Water rates must be apportioned between buyer and seller. The relevant authorities normally do this.
• On the purchase of a leasehold property, the ground rent and service charge must be apportioned and receipts produced. The seller may have to pay part of the service charge for which some provision or undertaking must be arranged.
• The seller must not remove any of the contents, fixtures and fittings he has agreed to sell.
• The buyer must contact all relevant authorities to ensure a smooth transfer of all supplies and services to avoid disconnection and the inconvenience that this may entail.
The Completion
The Completion is the last stage in any property transaction, when the balance of the purchase money is paid to the seller's solicitor and the transfer document and title deeds are handed to the buyer's solicitor. It will very rarely be necessary for you to be present at completion, which more often than not is now done without a meeting by electronic funds transfer in exchange for the deeds and key. Prior to completion the parties to the transaction must have signed the requisite documentation or have it signed on their behalf by an Attorney under a duly executed Power of Attorney.
If you are the buyer, we will inform you well in advance of completion exactly how much money will be required, and in what form. The keys of the property will be released to the buyer following completion (or in advance subject to prior arrangements).
As with all Property purchases we strongly advise you seek legal advice.
The Buying Process in the United Kingdom
