...The Legal Process Continued

Back to the procedures, after receiving the draft contract from the ‘seller’s’ solicitor, the ‘buyer’s’ conveyancer will send a long list of printed preliminary enquiries in return covering virtually everything that needs to be known about the property, including insurance, guarantees, disputes, any unusual charges and, if not already agreed, whether the seller intends to remove those fixtures, fittings, plants, aerial, burglar alarm, telephone, etc.

He will also send off an official search, with a printed list of further enquiries, to the local authority to see, for example, if the property is subject to any local land charge or any adverse entries; how drainage is connected, what building or other development has been granted, proposed roads, compulsory purchase or mining activities past, present or future.

When HIPs come into force most of this information plus some new items) will be included in the Package and available for inspection at the outset with the idea of saving significant time.

Once all these enquiries and searches are complete and satisfactory, the ‘buyers’ conveyancer will ensure that financial arrangements, such as the mortgage offer, are in place so that the purchase price can be paid on completion, with the date proposed inserted in the draft contract. At this stage, the deposit, normally 10% of the purchase price, is forwarded to the ‘sellers’ solicitor. If the mortgage advance is more than 90%, the balance is normally sent. The buyer signs the contract which is sent with the deposit.

The ‘sellers’ solicitor will ensure that his client is ready to be committed. If so, a contract in identical terms is signed and exchanged with the buyer. Both parties are now legally bound and neither can back out, without consent of the other, as that would be a breach of contract.

If the seller or buyer has another property to buy or sell in conjunction the conveyancers will normally ensure that all the properties in the chain of transactions exchange contracts simultaneously.

The ‘buyers’ conveyancer will make a few final checks to ensure that there is no undisclosed mortgage and the seller is not bankrupt, for example before preparing a Transfer Deed or Conveyance. Normally, prior to completion, the buyer will receive a statement of account from his conveyancer setting out the financial position, taking into account any pre-contract deposit paid to the estate agent and the deposit paid on exchange. On the day agreed for completion, the balance of the purchase price is paid to the ‘sellers’ solicitor, normally electronically. The keys will then be released to the buyer who becomes liable for the Council Tax and all other outgoings from that date.

Even with the best preparation, delays can occasionally occur or hidden liability surface after completion though this is increasingly rare.

Selling normally entails another purchase at the same time. Conversely, your buyer, unless a first time buyer, will also be trying to sell and cannot normally exchange contracts until his own property has been sold to provide the purchase money. With the additional delays in searches and enquiries, being involved in a chain of transactions effectively means you can only move at the speed of the slowest link in the chain. This is where we can assist as we can talk to other agents and other solicitors in the chain and keep you properly advised over what is happening. We will do everything we can to smooth out the delays that inevitably occur. Hopefully your solicitor/conveyancer will also do their best to keep you informed of progress. But always ask them the reason for delay; they are there to help and keep you fully informed.

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