Coastal House
C O N T E N T S
Team Players
Issuing The Sales Memorandum is the first step. This informs both sets of Solicitors of the Seller/Buyer, Property & Price agreed with any other specific terms - contents, timescales, surveys, related sales/purchases or mortgages etc. IT’S A TEAM EFFORT TO GET A SALE THROUGH - THE BUYER & SELLER, THEIR SOLICITORS, SURVEYORS, TRADES & OF COURSE US!
My role is to keep the Sale together: Find out answers Suggest solutions Keep the transaction moving
Your role is to: Be open & transparent Communicate swiftly Chase your Solicitors regularly
ConveyancingSolicitor
YoudoNOTneedsomeonelocalbutsomeonewhois communicative,quick&aproblemsolver.
Appointoneatthestartofyourjourney-whenlistingyour homeforsale&whenstartingtosearchforyournewhome. Thissavesvaluabletimeonceanofferisaccepted.
Who else plays a part & what you can do...
Consider what might come up & deal with it in advance - missing roof tiles, loose door handles, replace blown light bulbs, have an electrical check Find paperwork relating to any improvements Surveyor
Appoint early as they often book out 2-4 weeks in advance & take 1 week to produce the report.
Any issues raised could then delay the purchase.
This stage always takes longer than you think. A Buyer may have a mortgage valuation survey & their own independent survey.
Submit your full Mortgage Application as soon as your offer is accepted. Chase your broker/provider frequently. They will do a Mortgage Valuation in addition to any survey you might commission.
Tell your Agent when you have your full mortgage offer approved.
Be prepared to provide access to various tradesmen to provide reports on the state of the roof, plumbing, electrics etc.
Commission any reports early in the process in case this impacts on your decision or plans for the home.
THE LEGAL PROCESS
CONVEYANCING AT A GLANCE - THE SELLER
Seller
Appoint Solicitor
Complete The Property Information Forms
Answer Enquiries
Sign The Contract & Transfer Deed
- Formally Instruct Them
- Complete Paperwork & Anti-Money Laundering Checks
Searches, Surveys & Insurance
-PayForSearches&AskForThemToBeSubmitted-TheyCanTake2-8WeeksSoBestDoneAtTheStartOr ExpediteThemSoTheyDoNotHoldUpTheTransaction -ArrangeASurveyIfYouAreHavingOne-ThisCanTakeSeveralWeeksEspeciallyIfTheHouseIsLet -RememberToGetInsuranceQuotesAsYou’llNeedToInsureTheHouseUponExchange
AskTheSolicitorToInformTheSellers’SolicitorTheyAreActing-WithoutThisTheSeller’sSolicitorWillNotSendDraftContractPapers &YoursWillNotOrderSearches
- Review The Report & Ask Any Final Questions - Sign The Contract & Transfer Deed (TR1) Signing Can Be Done At The Outset To Save Time Report
-BankTransfersCanBeDoneSameDayButThereMayBeDailyTransferLimitsSoCheckWithYourBank& AlsoTheTransferCut-OffTime.SomeSolicitorsAlsoLikeTheMoneyFullyClearedInTheirAccounts24 HoursBeforeTransferring -InsureTheHouse
TransferYourDepositAheadOfTime
THE LEGAL PROCESS
CONVEYANCING AT A GLANCE - THE SOLICITORS
Seller’s
Solicitor
Take On
Open The Client File
Get Official Copy Of The Deeds & Completed Property
Information Forms
Inform The Buyer’s Solicitor You Are Instructed
Send Draft Contract Papers
Respond To Enquiries
Liaise With Buyer’s Solicitor & Agent
Request Signatures On Contracts & Transfer Deeds
Agree Dates
Discuss Exchange & Completion Dates With All Parties
Exchange & Complete
Buyer’s Solicitor
Take On
Open The Client File
Inform The Seller’s Solicitor You Are Instructed Review Draft Contract Papers
Raise Enquiries
Raise Questions With Seller’s Solicitor Liaise With Mortgage Lender If Required
Prepare Client Report & Agree Dates
Discuss Exchange & Completion Dates With All Parties Request Signatures On Contracts & Transfer Deeds Submit Client Report For Review
TIMELINE & DETAIL
Day 1 OFFER ACCEPTED SOLICITORS
- Agent issues the Sales Memorandum once ID, proof of funds & Solicitor details are received from both parties
This starts the process with the Solicitors
BUT You must:
- Formally instruct your Solicitor
- Pay monies on account
- Complete their paperwork
Before they will open their file
Week 1-2
- Solicitor take on paperwork completed
- Solicitor opens File
- Instruction letter sent to opposite Solicitor
- Seller’s Solicitor issues Draft Contract Pack*
- Buyer’s Solicitor reviews contract pack, agrees it & releases it for signing
- Seller should provide their Solicitor with any Planning Applications & Approvals, Building Control/Gas Safety/FENSA Certificates, Management Accounts & AGM Minutes (if Leasehold)**
- If a Leasehold home, the Seller should pay for & request the LPE1 from the Managing Agents as this can take weeks
*The Buyer’s Solicitor will NOT start work until they receive the Draft Contract Pack so the quicker the Seller completes the initial paperwork the quicker the transaction starts - Don’t Lose Momentum At The Outset
**If you do not have these, please commission/request a copy NOW, or advise your Solicitor an Indemnity Policy may be required
Week 1-6
SEARCHES
- Buyer pays for Searches*
- Buyer instructs Solicitor to submit Searches
- Buyer’s Solicitor applies for Searches
*The home will not be marked as ‘Under Offer’ until the Buyer’s Solicitor confirms that Search monies are on account Until such time the home will be fully marketed & viewings undertaken Your Solicitor will not Ask for monies on account until they receive the Draft Contract Pack but you can pay them!
Week 1-3
SURVEY
- Buyer appoints a Surveyor
- Surveyor contacts Agent to arrange access
- Surveyor conducts survey & reports to client - the report can take upto 1 week
- Buyer raises any issues/concerns with Agent
- Buyer sends report to Solicitor
- Buyer instructs additional investigations if requiredelectrical check/roof inspection/damp survey etc
- Agent discusses any actions required with Seller
Week 1-8
FUNDS
Buyer:
- If you require a Mortgage, formally submit your Mortgage Application You should have an Agreement in Principle (AIP) already but this needs to be converted to a Formal Offer. The Mortgage Lender will conduct their own Valuation using a Surveyor. This will be in addition to your own independent Survey if you choose to have one*
- If it is a Cash purchase make sure you are aware of any timescales in releasing your monies from investments/accounts
- Be ready to move your deposit in advance of Exchange
*If you are porting a mortgage this can usually be held for 3 months whilst you find a new home
Week 2+
ENQUIRIES
- Buyer’s Solicitor raises Enquiries - some do this all in one go after Searches are back, others do it piecemeal
- Seller’s Solicitor answers the questions
- Seller should confirm or provide answers promptly
- Seller may be asked to provide an EIRC (Electrical Installation Condition Report)
- if you have a holiday let you should already have one, if not, it is at your discretion if you want to pay for one You must however provide a current Gas Safety Certificate
- if you don’t have one book it in NOW
Week 6
DATES
- Agree Dates for Exchange & Completion. You MUST agree both as the dates go on the official Contract You can state On or Before a certain date if needs be
Remember You do NOT have to be in the country or physically present at Exchange or Completion just contactable so long as you have signed your contract & for the Buyer deposit monies are logded with your Solicitor
- Now is the time to get quotes for Removers. You can tentatively book a date in & change once you know for sure but they get booked up so book in early
REPORTING Week 6
- Buyer’s Solicitor will Report to Client. This is a copy of all the findings from the searches, enquiries & property background checks
- Buyer should read & query anything they do not understand or want more information on. Once happy they can instruct their Solicitor to Exchange
Week 6
CONTRACTS
- Buyer & Seller must both sign* the Contract & Transfer Deed (TR1) to be ready to Exchange
*You can sign this at any time. Request it early from your Solicitor so you are ready to go
Week 8+
DEPOSIT
- Buyer must move their 10% deposit at least the day before Exchange
Week 8+
EXCHANGE &
COMPLETION
- Your Solicitor MUST be able to contact you to Exchange. They will ring you on the day & need formal confirmation that you agree to Exchange*. Make sure your phone is ON & you have service!
*If there is a mortgage involved then you usually need at least 5 working days for the Mortgage draw-down - this can be expedited by your Solicitor
Selling is what we do! Ifyou are unsure please ask!
- Agent will send the Sellers’ Solicitor their invoice
- On Completion Day Agent will release keys once the Sellers’ Solicitor confirms receipt of funds
- Agent hands over Keys & Welcome Basket
Please Note:
If there is a chain this is all happening mulitple times across multiple properties & You will be both a Buyer & a Seller
What happens on exchange?
Exchange
Once all Solicitors in the chain are ready, Exchange can take place - this is a phone call between the Solicitors to confirm the property, price and parties involved. This is when the Completion Date is set.
If there is a longer chain then the Solicitor at the bottom of the chain phones the one above to release the unconditional contract at a certain time later that day, and so on to the top of the chain at which point the Solicitor at the top of the chain confirms to the one below that it is accepted. Each Solicitor then calls the one below to accept the contract and the Sales are all exchanged
Remember that on Exchange the Buyer should have insured the house as it then becomes their responsibility.
Completion - the house is yours!
Completion
Keys can’t be released until the Seller’s Solicitors have informed the Agent that Completion has taken place. This means that the full funds are received by the Sellers’ Solicitor.
This can be at any time of the day
You don’t have to be available to go the house or collect keys on the day of completion - it is just the day it becomes fully yours.
KEY DEPENDENCIES
REMEMBER THERE IS A SEQUENCE SO COMPLETE YOUR TASKS AS SOON AS POSSIBLE TO STOP UNNECESSARY DELAYS
SALES MEMORANDUM
This starts the process but the Agent needs the Buyer’s ID, Proof of Funds & Solicitor details before they can issue it.
INSTRUCTING SOLICITORS
Complete all the Solicitor paperwork - they wil NOT open their file or start work without this & monies on account
DRAFT CONTRACT PACK
The Seller’s Solictor issues this - without it the Buyer’s Solicitor will NOT apply for Searches. Seller - chase your Solicitor to issue it
SEARCHES
Buyers - pay for your Searches & instruct your Solicitor to apply for them - they can take upto 8 weeks
Buyers - Don’t wait to be asked for the search money, ask your Solicitor how much & pay it
We do NOT mark the house as Under Offer until search monies are paid
CHASE
Chase your Solicitor - don’t assume they are working on your case, ask them what they are waiting on & tell the Agent so they can chase the other side.
REPORTING & FUNDS
Buyers - ask for your Report & bank details so you can move your deposit ready for exchange.
MISCONCEPTIONS////
Can you Exchange & Complete on the same day?
Yes, you can
Do I need to collect the keys on Completion Day?
No, you can collect from the Agents at any time after Completion to suit you
Do I have to have a survey?
No, you don’t - often a survey will raise more questions - you may be better off getting a qualified tradesman to look at specific aspects if you have concerns
Do you need a certain time between Exchange & Completion?
No, it may just depend when you can get removers - so provisionally book them in early on in the process
Do I have to be in the country on Exchange day?
No, your solicitor must be able to contact you either by phone or email on the day to get your consent to exchange
How long should it take?
This depends on how much you chase your Solicitor and how quickly they respond to the Q&As - it is usually 3-4 months from offer accepted to move in but can be done in 8 weeks!
Can you split out content costs?
Yes, you can - your solicitor will need an inventory and asscociated costs to substantiate the amount to allocate to the contents purchase vs the property purchase price
When can I collect keys on Completion Day?
Once full funds are with the Seller’s Solicitor they call the Agent to confirm keys can be released to the new owners - this is usually after 2pm but can be earlier. The Agents will NOT release keys until they have confirmation from the Seller’s Solicitor irrespective of whether you have been informed that completion has taken place
Should the owners repair/replace points noted in the survey?
Not necessarily - unless a house is a new build it is likely the surveyor will pick up on potential issues but remember you are buying an established home so it will come with points to improve - the price you agree to pay should reflect the current state and is unlikely to be renegotiated unless it is something that was totally unapparent from a viewing
TERMINOLOGY
Demystifying The Jargon
INSIGHT
1 in 3 transactions falls over so the quicker you get to Exchange the more assured you are of Selling/Buying
It ' s all in the details!
The jargon
Apportionment
Refers to the process of dividing various charges, taxes, and expenses between the Buyer and Seller when a property changes ownership - usually to do with leasehold homes and apportioning service charge payments
Covenants
Specified in your Title Deed or Lease these may indicate restrictions on the property such as it can only be used for residential purposes and not holiday let, or pets are not allowed for instance.
Easements/Rights Of Way
Acknowledged by a deed these provide access over someone else’s land to yours. I.e. a shared right of way across the front of a row of cottages to access your front door, or an easement to indicate you use a path down to the river which crossed someone else’s garden
Forms
TA6 - Property Information Form - completed by the Seller about their home
TA7 - Leasehold Information Form - asks questions of the Seller about the lease
TA10 - Fixtures & Fittings Form - completed by the Seller
TR1 - Transfer Deed which transfers the legal ownership of the property with the Land Registry and must be signed by both the Buyer & Seller
LPE1 - Leasehold Property Enquiries Form asks questions from the managing agent or landlord
FME1 - Freehold Management Enquiry Form - estate homes also need a Freehold Management Pack detailing any communal charges, i.e. for communal area gardening. If an Estate Rent Charge is applicable, even if it has never been demanded, you may need to consider a deed of variation if you need a mortgage as if an estate rent charge is not paid within 40 days whether or not it is demanded, the owner of the rent charge can grant a lease over the property which mortgage providers do not like
Flying Freehold
This is where there are two or more freehold estates at differing heights over the same piece of land. An indemnity policy will likely be requried in these cases
Freehold
A Freehold property is one that in effect owns the land it sits on (although all land is technically owned by the Crown).
Indemnity Policies
A type of insurance policy where the insurance company guarantees compensation for losses or damages sustained by a policyholder usually in relation to the absence of sign-offs or certificates for planning or building control etc.
Leasehold
Usually apartments are Leasehold as they form part of a building which owns the Freehold of the land it sits on. Each lease will specify its term and have a set ground rent and service charges payable Some leases are less formal and owners contribute to costs as and when required Many mortgage companies do not like this arrangement so it may be prudent to formalise this position prior to a sale.
Service Charges
Usually for leasehold properties, but also in managed freehold estates, these are annual charges to contribute towards the upkeep of the building - gardening and maintenance of communal grounds, servicing of lifts or electronic gates, sinking fund for future works and buildings insurance.
Statutory Declaration
This can be used to confirm if a certain right has been enjoyed without interruption during your ownership of the home and this could reasonably be considered to pass to the new owners - parking arrangements/right of access across adjacent land etc.
NOTES
CHECKLISTS
SELLER
Get quotes for Solicitors
Appoint Solicitor
Complete Solicitor paperwork
Pay monies on account
Provide copies of Planning, Building Regs, Gas Safety & other certificates
Request the LPE1 from the Managing Agents/Management Company if leasehold
Chase Solicitor to:
Confirm instructed to the other side
Send Draft Contract Pack
Answer enquiries
Sign Draft Contract
Sign Transfer Deed
Provide answers to questions
Confirm Exchange & Completion Dates
Contact Removers & book provisional date
Leave keys & useful information for the new owners
Provide Agent with a Review
BUYER
Get quotes for Solicitors
Appoint Solicitor
Complete Solicitor paperwork
Pay monies on account
Chase Solicitor to:
Confirm instructed to the other side
Apply for Searches
Raise Enquiries Report to you
Sign Draft Contract
Sign Transfer Deed
Review Report
Confirm Exchange & Completion Dates
Contact Removers & book provisional date
Buyer
Advise Agent when you will be down to collect keys - on Completion or after
Provide Agent with a Review
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