1. Introduction
We have provided this Guide in the hope that it may explain some
of the phrases and terms used in conveyancing, the steps which
are usually taken, the reasons for them, and the factors which
dictate when these steps are to be taken.
There are three main areas to consider and we shall briefly look
at each; They are:
back to top ^ 2. Pre-exchange
(a) The seller:
Having decided to sell, the sooner you instruct us the better
as much of the time now is spent waiting to hear from your lender
with your deeds. We can then get together a complete package of
documents and information which will be required by your buyer’s
solicitors this will ensure that no time is wasted once you have
found a buyer.
Having found a buyer a draft contract will be sent to the buyer’s
solicitors as soon as possible. To do this we will have obtained
your deeds from either your bank or building society. We will have
checked the nature of your ownership and the existence of rights
of burdens which must be revealed and passed on to your buyer.
If we have acted for you before, we will have asked for the deeds
straight away; otherwise you will have to tell us your details,
the sooner the better.
We shall also at this time, apply for a redemption figure from
your bank/building society. Please also advise us as to whether
or not you have any other loans secured against the property which
will need to be repaid from the proceeds of the sale. We shall
need to be in possession of this information prior to proceeding
to exchange of Contracts. Provided that the information you have
supplied is complete your buyers solicitor should not need to raise
any further questions. The buyer’s should then be able to
concentrate their efforts on obtaining mortgage funding. Once the
buyer’s solicitor is satisfied everything is in place, he
will ask his clients to sign their part of the contract and pay
their deposit, contracts will then be “ exchanged ” and
a date fixed for moving.
The Buyer:
(b) You have found the property you want, and the seller has accepted
your offer. Some of the most difficult and responsible work has
to be done by your solicitor now.
The making of “local searches” (your local search
only covers the property itself not any surrounding property) and “preliminary
enquiries” is by no means a formality. In our preliminary
enquiries, we will enquire as to the state and repair and condition
of the property and central heating (if any). Please let us know
as soon as possible whether or not you consider that the property
has been extended recently as this will affect the enquiries which
we make of the seller’s solicitors.
This should not however be taken as to be the only enquiries which
you should make in connection with your purchase. You should always
consider what kind of survey you require in connection with your
purchase. In addition if the property you are purchasing has gas
central heating, it is always prudent to have that gas central
heating examined before a commitment to purchase is made to establish
its repair and condition.
We shall summarise for you the information obtained about the
property and advise you as to the meaning of the provisions of
the contract in a pre-contract report which will be sent to you
prior to exchange of contracts. When you receive this report please
read it carefully and when calling to see us to sign your Contract,
you should raise any queries you have at that time. It is also
our duty to ensure you do not “exchange contracts” before
you have available all the money needed to pay for the house at
completion. We shall be in touch with your lending institution
and with your buyer’s solicitors, if you have a related sale.
Once all these elements have come together, we shall ask you to
arrange an appointment to call to see us bringing with you your
pre-contract report and any queries you have. Once you are completely
satisfied you can then sign the contract and if applicable pay
your deposit to us so that contracts can be exchanged.
In addition to acting on your behalf in connection with the transaction,
we will also have to represent your building society/bank. They
have separate requirements and one of their requirements is that
we verify the identity of their borrowers. To this end, we will
be required to provide to the building society/bank confirmation
that we have been provided by you with either, a full passport,
full driving licence, armed forces I.D. Card, National Insurance
Card, Credit/Debit Card. Other acceptable forms of identification
comprise a bank statement, building society passbook, Council Tax
bill, credit statement, e.g. Barclaycard or utility bill such as
gas, electricity or telephone, child benefit book.
back to top ^ 3. Between contract and completion
It is in this period that the buyer’s solicitors check the
title of the property and prepare the document to transfer ownership
to the buyer. The “mortgage” is also prepared at this
time and its legal effect will be explained (unless you specify
otherwise we will assume you are fully aware of all the terms and
conditions of the mortgage.) An obligation to repay thousands of
pounds at a rate of perhaps hundreds a month, is not undertaken
lightly. In some cases the “transfer” or “conveyance” only
has to be signed by the seller. In others it must be signed by
the buyer too, either because the buyer must “covenant” with
the seller to observe the “restrictions” or because
there is more than one buyer and the transfer document contains
a declaration of trust. As we approach the date for completion,
the financial details will be worked out and the buyer asked to
provide the balance of the purchase price in readiness for “completion”.
On the “completion” day the balance of the purchase
monies will be handed over in return for the deeds and signed transfer
documents. At that point you will be entitled to occupy the house
and take possession of the keys.
back to top ^ 4. Completion
The completion of your transaction should take place in accordance
with the time allocated in the contract on the day fixed for completion,
specified in the contract. There is usually no need for you to
call into our offices on that day.
With regard to your keys, if you are selling, you should arrange
to either drop them into the estate agents who are dealing with
the sale, sometime during the morning, prior to lunchtime (if it
is easier for you, then leave one set of keys with the agent, and
when you leave the property leave the remaining sets there). The
agents will not give the keys to your buyer until such time as
we have received the money for the house, alternatively, let us
have one set of keys, and we will pass these on. If you are buying
a property, the keys will not be available until your seller’s
solicitors have received the money for the property.
It is important, if you are selling, that all meters are read,
water rates cancelled, and the Local Authority advised of the date
you are moving.
back to top ^ 5. After completion
What remains to be done is almost entirely in the hands of the
solicitor. As seller’s solicitors, we shall account to you,
the seller for the balance of the purchase price after paying off
any mortgages, estate agents and ourselves. If we are acting for
you as a buyer, there is rather more to be done. We shall send
the transfer or conveyance to Inland Revenue for its detail to
be entered in their records and any necessary duty to be paid.
If a purchase price is in excess of £60,000, then stamp duty
is payable by the buyer at the rate of 1% of that price. This is
a government tax and should not be confused with our professional
charges! Any stamp duty must be paid within thirty days of completion
otherwise the Inland Revenue may impose a penalty on you which
will form a percentage of the outstanding stamp duty. The Inland
Revenue return the document and we shall deliver to the Land Registry,
the transfer or conveyance with an application to register the
title, and also with a cheque for the Land Registry fee. On the
return of the document, we shall lodge the deeds with the lending
institution. If there is no mortgage, we shall deal with the deeds
as you wish. We would be happy to look after them for you free
of any charge for as long as you wish.
back to top ^ 6. Buying in the Future
2003 brought in the new Land Registration Act, which makes the
first move in changing the way homes, are bought and sold in the
future.
The Government has invested over fifteen million pounds in the
e-Conveyancing project and the new legislation will radically change
the way Conveyancing is carried out.
The over riding ethos is to remove as much of the paper trail
as possible since this is the main way in which property transactions
become bogged down.
The advent of the Internet has improved the quality and speed of
the service we are able to provide our clients. Not only are we now
able to obtain evidence of clients’ ownership instantly via Land
Registry direct but we request Local Authority searches on-line with
nearly every Council and in some cases it is possible to obtain a
result in less than 24 hours.
It is not only the Local Authorities that are starting to take
notice, mortgage lenders are starting to provide Websites which
Solicitors and Conveyancers can access to obtain deeds, mortgage
documents and mortgage redemption figures. Water Authorities are
also providing their drainage searches on-line via the National
Land Information Service, together with other utilities, which
have in the past taken anything up to three weeks to process, a
delay, which is now thankfully being eroded.
However, as with many technological and procedural improvements
such as being available to clients seven days a week and operating
a “no move no fee” – the benefits to the consumer
can only be passed on when they are able to make use of these facilities
via their Solicitor. If speed and cost are a priority for the customer
then they should consider carefully which firm they use and check
whether these increased levels of service are offered before they
instruct their solicitors.
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7. Home Information Packs
MC Estates will arrange a Home Information Pack at a cost of £299 plus VAT.
back to top ^ 8. Retained Client
MC Estates are retained by a national company who have a constant requirement for building land (with or without planning permission), houses in need of refurbishment and portfolios of residential investment properties. In this instance no fees will be payable by the vendor. If you are considering selling any of the above, please phone Mark Cooper in the strictest confidence.
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