Moving Home Guide. A simple step by step guide to buying & selling

Transcription

1 RESIDENTIAL PROPERTY BUYING & SELLING Moving Home Guide A simple step by step guide to buying & selling

2 2 Turn to page 11 of this Guide where there is a useful checklist that details all the things you need to be aware of and actions that need to be taken when buying or selling a property. We hope you find it useful. Index PRACTICAL GUIDES FROM TEES LAW Step by step BUYING A PROPERTY Introduction 2 Subject to Contract 3 The Contract 3 Enquiries before Contract 4 Local Authority & Other Searches 4 Survey 5 Deposit 5 Exchange of Contracts 5 Insurance 6 Between exchange of Contracts and completion 6 Completion 7 Following completion 7 SELLING A PROPERTY Subject to Contract 8 The Contract 8 Enquiries before Contract 9 Exchange of Contracts 9 Between exchange of 10 Contracts and completion Completion 10 Buying and selling a home is one of the most important events in your life. It can be immensely exciting. And incredibly stressful. All at the same time. Applying for a mortgage, arranging a survey, organising buildings insurance, dealing with services it s easy to get lost in the paperwork. Dealing efficiently with each of these stages is the only way to make sure your transaction goes smoothly. That s why, we have created this Step by Step Guide that explains the various factors involved in a property purchase or sale, we hope you find it useful. At Tees, we deliver a highly personal service by giving you a dedicated conveyancer an expert in all the legal aspects of buying and selling your property. We know good communication is essential. We ll answer your questions, update you regularly and keep everything on the right track. In short, we ll help you find your way home.

3 3 BUYING A PROPERTY When you buy or sell a house or leasehold flat you want the legal formalities completed as fast and efficiently as possible. We promise you just that. Our experienced and approachable residential property team put everything in place, so you can relax, knowing you re fully protected. Step 1 Subject to When negotiating to buy a property you should express any offer you make to be subject to. Any written negotiations which are not made expressly subject to may lead to you being bound by them. It is essential that you do not commit yourself legally to buying a property before you can be satisfied that the searches and enquiries which we make on your behalf and your survey reveal nothing adverse. If you are buying with the aid of a mortgage you also need to receive a satisfactory mortgage offer before you commit to buy. Except, of course, for first time buyers it is nearly always essential that the exchange of s for both your sale and purchase are simultaneous. Step 2 The Contract When your subject to offer to buy the property has been accepted by the Seller, a draft, Fixtures Fittings and Contents Form and Property Information Form will be prepared and sent to us by the Seller s solicitors together with copies of the Seller s deeds. The contains the terms of the transaction and details of matters which affect the property and defines the rights and liabilities of the parties. The Fixtures Fittings and Contents Form specifies those items at the property which are either included in or excluded from the sale, whilst the Property Information Form will supply the answers to many of your questions about the property. We will check the form of the on your behalf and will make any amendments which we feel necessary to protect your position. 1. Subject to 2. The 4. Local authority & other searches 5. Survey 6. Deposit 7. Exchange of s 8. Insurance 9. Between exchange of s & completion 10. Completion 11. Following completion

4 4 If anything is revealed by the searches and enquiries, such as planning infringements, boundary issues or the absence of a legal right, we ll immediately try to resolve matters for you. We ll always look for your best possible outcome. Step 3 Enquiries before After reviewing the draft and Property Information Form we will raise enquiries of the Seller s solicitors on any matters revealed by these papers on which we feel you need further information and we will also satisfy ourselves that the Seller does own the property free of restrictions. We will send you details of the contents of the property which are included in the sale as advised to us by the Seller s Solicitors so that you may check that these are as you agreed. Step 4 Local authority and other searches Searches and enquiries are raised of the relevant Local Authority and Water Company to ascertain, for example, whether the Local Authority have adopted the road as a highway and are thus responsible for it s maintenance. We will also find out if there are any road proposals which may affect the property, whether the property is on mains drainage, what planning consents have been granted and in general whether any proposals, Orders or Notices have been issued which might affect the property. As a general rule it can take up to 3 weeks for the Authorities to answer these searches and enquiries. We will also raise any other searches that may be relevant such as an Environmental Search, a search of the Commons Register or a Chancel Check (which confirms whether the property is located in an area with a potential liability for church repairs). 1. Subject to 2. The 4. Local authority & other searches 5. Survey 6. Deposit 7. Exchange of s 8. Insurance 9. Between exchange of s & completion 10. Completion 11. Following completion

5 5 With our fixed-price fee, budgeting the cost of your move is easy too. You ll know the costs upfront and benefit from our exclusive Tees Fixed-Fee Guarantee. It s transparent, easy to understand and there are no hidden extras. Step 5 Survey By signing and exchanging s you will be deemed to accept the property in its actual state and condition. A survey should therefore be carried out before s are exchanged and preferably as early as possible. If the survey indicates significant problems with the property you will save time and expense by withdrawing from the proposed purchase as soon as possible unless a reduced price can be negotiated. A valuation of the property carried out on behalf of your Building Society is not as detailed as a Survey and will give you no guarantee that the property is free from defects. If you decide to rely upon a Valuation it is important you understand the differences. Step 6 Deposit On exchange of s you will be required to pay a proportion of the purchase price by way of deposit. Traditionally this deposit is 10% of the purchase price, although in an increasing number of cases it is possible to negotiate a reduction such as, for example, where the Buyer is obtaining over 90% of the purchase price by mortgage. Step 7 Exchange of s When we have completed our enquiries before, received the replies and the results of the Local Authority Searches and agreed the terms of the, we will report to you on everything you need to know. On seeing a copy of your mortgage offer we will check and report to you on any special conditions which the Building Society may require. We are normally in a position to provide all these reports to you at around 4 weeks or so after we have received the draft from your Seller s solicitors. Provided you are completely satisfied and wish to proceed and you have received a satisfactory offer of mortgage, you will be asked to sign the and provide the deposit monies. The exchange of s usually takes place by means of telephone conversations between the solicitors acting for the Seller and the Buyer. The signed by you is sent to the Seller s solicitor with the deposit in exchange for a signed by the Seller. When s are exchanged, but not before, both you and your Seller are legally committed and neither party can then withdraw from the transaction. 1. Subject to 2. The 4. Local authority & other searches 5. Survey 6. Deposit 7. Exchange of s 8. Insurance 9. Between exchange of s & completion 10. Completion 11. Following completion

6 6 I just wanted to say a big thank you for a friendly and efficient service. I have received my completion statement today in the post. I will contact you again when I have found another property. Mrs H, Bishop s Stortford Step 8 Insurance Depending on the terms of the the buildings on the property will be at your risk either from exchange of s or from completion and adequate insurance cover should therefore be effected from the relevant date. If you are buying with the aid of a mortgage, insurance cover may be effected by the Lender, although the Lender will normally permit you to effect your own cover but many will require payment of a small fee in return. In any event you should attend to the insurance of your contents in the property as from the date you move in to your new home. Step 9 Between exchange of s and completion The completion date is the day upon which the balance of the purchase price (i.e. the price less the deposit paid on exchange of s) must be paid. The date will be agreed at the time of exchange of s and is a term of the. Save in the case of a house in the course of construction (when completion cannot take place until the house is finished) the date for completion is often between 2 and 4 weeks from exchange of s but can be shorter or longer if both parties agree. It is during the period between exchange of s and completion that we raise our pre-completion enquiries (called requisitions) of the Vendor s solicitors and make the final searches in, for instance, the Land Charges Registry, H. M. Land Registry and the Companies Registry. We also prepare the deed which will place the property in your name known as the Transfer. The mortgage deed is also prepared at this time and has to be signed by you prior to completion. It is in the period up to completion that you should make the detailed arrangements for your move, to include making application to the service companies so as to make sure that all services are available at the property from completion. Prior to completion you will be asked to provide the balance of the monies required to complete including costs, Stamp Duty Land Tax and Land Registry fees but after taking into account the mortgage advance and any deposit paid. These funds must be cleared funds in our account on the day of completion and we will, therefore, request these monies from you in good time prior to completion. We will give your new Lender the information they require and obtain the mortgage advance monies direct from them. 1. Subject to 2. The 4. Local authority & other searches 5. Survey 6. Deposit 7. Exchange of s 8. Insurance 9. Between exchange of s & completion 10. Completion 11. Following completion

7 7 (Tees were) professional and friendly, this gave me the confidence to rely on their expertise. I was kept informed of progress at each stage of the purchase. Thank you so much for making the whole experience of moving stress free. Mrs M, Saffron Walden Step 10 Completion It is on completion that your Seller must vacate the property and you will then be to move in. On completion the Transfer deed will be forwarded to us in exchange for the balance of the purchase price of the property. Step 11 Following completion We will report to you in detail immediately following completion and will then attend to all the necessary stamping and registration formalities. The Land Registry now maintain an electronic Register and following completion of the Registration formalities we will send a copy of the updated Register showing you as the new owner to both you and your Lender. These notes are intended by way of general guidance only and we will keep you fully in the picture as matters progress. As stressed above you should not hesitate to get in touch with us at any time if you require further details, explanation or advice. 1. Subject to 2. The 4. Local authority & other searches 5. Survey 6. Deposit 7. Exchange of s 8. Insurance 9. Between exchange of s & completion 10. Completion 11. Following completion

8 8 SELLING A PROPERTY Step 1 Subject to You should ensure that any negotiations which you conduct with would be buyers are expressly made subject to so that there can be no question of your being committed legally to a sale before you are fully ready to be so committed. Step 2 The Ideally we like to obtain the title deeds to your property as soon as your property is placed on the market so that we are able to prepare a draft Contract for submission to the buyer s Solicitors just as soon as a satisfactory buyer has been found. In most cases your property will be Registered at the Land Registry and we will take up Official Copies of the Entries direct from the Land Registry. We will prepare a Contract by reference to the title deeds and will include, in particular, any specific terms of sale which you may have provisionally agreed with your buyers. 1. Subject to 2. The 4. Between exchange of s & completion 5. Contracts & completion 6. Completion

9 9 Thank you very much for handling my recent house sale. The whole process was stress free and your team an absolute pleasure to deal with. The treatment that I received at every stage was prompt, courteous and thoroughly professional. Mr C, Hertford Step 3 Enquiries before Following receipt of your instructions to act on your behalf in the sale of your property we will send you a Property Information Form and a Fixtures Fittings and Contents form and also if the property is leasehold, a Leasehold Information Form. We will ask you to complete these forms and return them to us to enable us to send a full set of papers to the buyer s solicitors when we send the draft Contract. Upon receipt of the papers the buyer s solicitors may raise further enquiries about the property and we will almost certainly need further information from you to enable us to reply to any such additional enquiries - as you will appreciate, the information required to deal with enquiries about the property can only be provided by someone having a detailed knowledge of the property, usually as an owner/occupier. 1. Subject to 2. The 4. Between exchange of s & completion 5. Contracts & completion Step 4 Exchange of s We will report to you just as soon as the form of the Contract has been agreed with the buyer s solicitors and will then make arrangements for this to be signed by you. It is not until both parties have signed identical copies of the Contract and a formal exchange of Contracts has been effected that you are legally committed to the sale. At the point of this formal exchange of Contracts a completion date will also be agreed. On exchange of Contracts the buyer pays a deposit which is traditionally ten per cent of the purchase price. A reduced deposit may be negotiated when, for instance, the buyer is obtaining over 90% of the purchase price on mortgage. This deposit would be forfeited in the extremely unlikely event of the buyer subsequently failing to complete the Contract. If you are buying at the same time as selling your house it is common for the deposit received from your buyer to be utilised towards the deposit payable on your related purchase. 6. Completion

10 10 I have to say we have been absolutely delighted with the outcome and the efficiency and client care that we have experienced. They have been excellent in all respects and this has made quite a stressful time for our family so much easier. Mr W, Northampton Step 5 Between exchange of s and completion Following the exchange of Contracts we will obtain details of the amounts required to repay any mortgages which may be secured upon your property and will also obtain the estate agent s commission account for your approval. In the period following an exchange of Contracts we will be responding to the buyer s Solicitor s precompletion enquiries (called requisitions) and will be agreeing the form of the transfer deed with the buyer s Solicitors. We will arrange for you to sign this transfer deed before completion. At this time you should make the detailed arrangements for your move out of the property, to include requesting the service companies to arrange for meter readings on the day of completion. Step6 Completion On the date of completion you are, of course, required to give vacant possession of the property and your buyer is entitled to move into the property. We will hand over the Transfer and any other deeds and documents we may hold relating to the property to the buyer s Solicitors in exchange for the balance of the purchase monies. If you are handing over the keys personally to the buyer (rather than through agents) it is, of course, important not to hand the keys over until we have confirmed receipt of the balance of the purchase monies. We will, at that stage, repay any mortgages and settle the estate agent s approved commission account. Your property and contents insurance cover should be kept in full force and effect until completion. You should attend to the final reading of the gas and electricity meters and the transfer of the telephone. We will report fully to you immediately following completion and will account to you for any remaining balance of the proceeds of sale after taking into account the costs of the sale and any monies required in connection with, for instance, the purchase of another property. 1. Subject to 2. The 4. Between exchange of s & completion 5. Contracts & completion 6. Completion These notes are intended by way of general guidance only and we will keep you fully in the picture as matters progress. As stressed above you should not hesitate to get in touch with us if at any time you require further details, explanation or advice.

11 11 MOVING CHECKLIST Mark Carter Tees Partner As soon as you know your moving date Begin packing, as there is never enough time. Book a removal company; we would advise that you use someone listed with the British Association of Removers. Always make sure you read the small print of their insurance as they may not cover boxes you have packed. If you re moving yourself make sure you book a van to help you on the day. If you are in rented accommodation, check your lease notice provisions and give notice to your landlord Six weeks to go If you need additional storage space make sure it is booked in advance. If you are using a removal company they could source this on your behalf but it is always worth gathering a few quotes. Book time off work. Traditionally house moves happen on a Friday, to give you the weekend to get straight, but a few extra days on top may be advisable especially if you re moving to a large property. Recruit help. Approach friends and family to help on your move in date, and try and leave your children and pets in safe hands. Four weeks to go Notify the relevant utility and media providers of your departure. Now do the opposite to begin establishing services at your new home. Make a list of everyone who should know about the move and send out change of address details. These should include: family and friends, professional advisers (financial, legal and insurance), government bodies, clubs and memberships, vehicle breakdown, mobile phone, DVLA etc. Two weeks to go File a change of address notice at the post office, making it effective on your moving date or a few days before. One week to go Finish packing so you have everything boxed up and ready to go make sure you do this systematically with everything clearly labelled. On the move day Record all utility readings; it may be advisable to take a picture for future reference. Stay until your movers have finished packing up your old home and before leaving take a final look around and check all windows and doors are secure. Make sure you are there when your movers are unpacking crossing everything off your inventory list and noting any damages caused in transition. The chances are by the end of the day you ll be too shattered to move, so relax, order a takeaway and open a bottle of champagne. If you have moved before you will know this list is not exhaustive but hopefully it is a helpful aid in creating a personal list of your own.

12 teeslaw.co.uk This Guide has been prepared to provide useful information but should not be considered as a substitute for advice on any specific case. Tees Law is a trading name of Stanley Tee LLP regulated by the Solicitors Regulation Authority. Registered in England and Wales number OC / Bishop s Stortford Cambridge Chelmsford Great Dunmow Northampton Saffron Walden