Buying a Home
Buying a home is one of the most important transactions financially for any individual or couple. The enclosed information should help you to understand what we will do on your behalf and your own obligations.
Summary of procedures and timescale
- On instruction us we ask you to pay us the amount requested on account to enable submission of initial searches.
- We will send you copies of relevant documents when we receive them from the sellers solicitors.
- You may have applied for a mortgage (we can assist if you wish).
- Please deal with any information requested by your mortgage Lender promptly.
- Tell us if there are any problems on the survey of any property.
- On receipt of your offer of mortgage, contact us to arrange an appointment to go through all of the contract papers.
- At your appointment, if you approve the terms, you will sign the Contract in readiness for exchange of contracts. You will be told if any searches have not been received, when they are anticipated and with that in mind, a completion date can be targeted.
- At or before the appointment you will bring in the deposit monies.
- Following the appointment we will liaise over the phone on any outstanding points before committing you to the purchase with an exchange of contracts.
- On exchange of contracts the moving date will be entered on the Contract.
- There will usually be two weeks between exchange of Contracts and completion and in this period if you have not already done so, you will need to sign the mortgage deed and the final transfer deed. You will need to pay us any further monies required to complete the transaction, including our fees. You will need to ensure that any insurances have been placed on risk (both life insurance and any buildings insurance). For some lenders please remember we will need to have full details of insurance before monies can be released.
- On completion of your purchase where possible make direct arrangements regarding keys, but speak to us if you have any particular worry regarding the Sellers reliability.
- Ring us on the day of completion at midday to check there are no difficulties.
- After completion we will register your ownership at the Land Registry, send you copies of the Deeds (usually three months or so later) and then forward the Deeds to your Lender (if you have a mortgage) or store them on your behalf.
Main points for you to consider
- Ownership
We will of course ensure on your behalf that the Seller owns the property you are buying, that any mortgages secured on the property are paid off and we will point out to you any restriction on use of the property. It is most important to advise us if you intend to use the property for any other purpose other than to live in it yourself in order that we can advise you on any other implications. - Boundaries
It is not our policy and is not covered within routine conveyancing costs to make a personal inspection of the property and its boundaries. Consequently we rely on you to tell us of anything unusual and in particular to tell us:-- (a) If any of the boundaries are unmarked i.e. there is no fence or wall, hedge or clear boundary division.
- (b) If there is any sign at the property of any other person who has rights of access over the property i.e. is there a gate in a rear boundary to another property or is there a shared driveway or any other shared access with a neighbour?
- (c) If there is any unusual feature like an upstairs bedroom which extends over an adjoining property.
- (d) Does the plan of the property appear to match the physical situation on the ground?
- Building Regulations and Planning
Have there been any physical alterations at the property since it was first built i.e. garages, extensions or internal alterations of a structural nature? This will enable us to advise you on the planning position. Also there are often provisions in Deeds which require additional consents to be obtained from previous owners or previous builders. - Local Authority Searches
We will carry out standard enquiries of the Local Authority which give information about the property and the area particularly in relation to planning matters. Please not however that this search does not tell you about neighbouring properties. If you have a particular concern, please speak to us. If there is adjoining land unbuilt upon you may wish us to make additional enquiries or to visit the planning offices yourself. - Your Mortgage
If you are buying the property with the help of a mortgage, we will have to prepare a report to your Lender confirming the property complies with a variety of standard requirements. We would emphasise the following points:-- (1) It is usually your responsibility to insure the property from exchange ofContracts (see below). If you are not arranging this through your Lender then make these arrangements provisionally at an early stage so that you are ready to put the arrangements in force at the relevant time. Please note that the interest of your Lender will need to be noted on the policy.
- (2) It is your responsibility to ensure that you know how your are repaying thecapital on the mortgage. If you are providing this by means of some financial investments such as an endowment policy, then it is important that this is ready to go in force at the right time. In addition you should monitor the performance of any investment regularly to ensure that you have sufficient funds to repay the mortgage.
- Life Cover
If you require life cover again you should ensure that arrangements are made at an early stage. - Money
- (a) It is usual for a Seller to ask for 10% of the price to be paid by way of deposit on exchange of Contracts. We shall require this in “cleared funds” before exchange of Contracts (personal cheques can take five working days to clear).
- (b) Any additional monies including all costs associated with the transaction are payable prior to completion and must be by way of “cleared funds”.
- Property Ownership
If you are an individual there is only one way in which you can own the property namely as the sole beneficial owner. If you are a couple purchasing the property, then you will have been asked by us to sign a separate form to choose the type of ownership you wish i.e. either as joint tenants or as tenants in common. - Surveys
“Let the buyer beware”. It is the general rule that you purchase a property in whatever state and condition it is in at the time of purchase. The onus is on you to check it is OK and that everything works, be it the structure, the roof, central heating, electrics, plumbing, drains, damp proofing, timber, etcetera. As well as a decent survey, consider getting qualified people to check these things out.You cannot renegotiate the price after exchange of Contracts! Remember the fee you pay to your Lender may only be for a “valuation report” and not a “survey”. - Exchange of contracts
At the time you sign the Contract it does not become legally binding. It only becomes binding on you when the solicitors agree “to exchange” (now usually done over the phone). At the time you sign the contract, the date of completion will often not be know and will only therefore be inserted into the Contract on the day of exchange. - The Completion Date
This is the moving date. It is the date when you agree to move (usually by 1.00pm) and to collect the keys (subject to the sellers solicitors receiving the purchase monies from us). - What happens if I break the Agreement?
The more important ones are:-- (1) You could lose your deposit (10% of the price even if you paid less)
- (2) You could be charged penalty interest at the contract rate. This couldhappen if monies do not reach the Sellers solicitors on the completion day before a certain time (often 2.00pm)
- (3) You could be asked to compensate the Seller for any other loss arising out of your breach of contract.
- Wills
Buying a house is a good time to review any existing Will to se that it meets your present circumstances. If you do not already have the security of a properly drawn Will, then you should make an appointment to remedy the position.
