Top 10 tips for a smooth sale and purchase
Categories: Conveyancing, News1. Read all documentation thoroughly
When purchasing your new home, there are a number of different legal reports, documents and forms that you will receive from your conveyancer at various stages of the transaction. To be certain that you don’t miss any important information, it is vital that you read through everything, paying close attention to all details. If you do not understand any information, your conveyancer will be happy to answer any questions or explain any details to you.
2. Return legal documents and correspondence promptly
Ensure that all relevant information which relates to the property or your personal circumstances is handed over to your conveyancer at an early stage. The quicker you can complete and sign the documentation sent to you by your conveyancer, the quicker your transaction will proceed.
3. Plan ahead
Make sure you appoint your mortgage broker, surveyor and conveyancer in good time. Also, ensure you have all your documentation prepared and ready, for example your ID documents and bank statements. Check with removal companies at an early stage to see what availability they have.
4. Finances
Your conveyancer will need to have proof of your deposit and balance completion funds. This will include evidence as to how your funds have accumulated, ie through savings, inheritance, gift, or proceeds of sale together with bank statements and associated documentation showing where your funds have been placed for the past six months. Ensure this information is given to your conveyancer at an early stage.
5. Be realistic about completion dates
Buying and selling property relies on third parties, (these third parties include mortgage brokers, other solicitors in the chain, and estate agents) who all work together to achieve the same goal – a Completion Date. Waiting on documents and updates can rest on the actions of other people. Be realistic about timings during the transaction and discuss dates with your conveyancer who will be able to guide you through the process and provide you with regular updates. If your property or the property you are buying is leasehold this will mean the transaction is more complex and will need more time to complete compared to a standard freehold transaction.
6. Have your mortgage & surveys in place as early as possible
It is advisable to discuss your circumstances with an independent mortgage broker at an early stage as they will be able to search the market for you to find which mortgage best suits you. You will need to make a decision as to how much money you can afford to borrow before securing your agreement and starting the search for your property.
7. Making arrangements with your seller or buyer
If you make separate arrangements with your seller or buyer, advise your conveyancer as soon as possible – It is vital that your conveyancer is kept in the loop at all times in order to progress your file easily and to be able to provide you with the best advice.
8. Calculating Costs
Ensure that you check all the costs so that there are no surprises on completion. The buying and selling process will include costs from various parties – which will include your conveyancer, estate agents, and mortgage brokers. You will also be responsible for paying disbursements which includes searches fees, stamp duty land tax, land registry fees and survey fees. Your conveyancer will provide a quotation at the beginning of the transaction but be aware that other matters do crop up during the process which could mean that additional searches may be required. This is especially the case with leasehold transactions or freehold transactions which have freehold service charges.
9. Cyber security
Cyber fraud is becoming an increasing problem nationally in conveyancing due to the large amounts of money that are transferred during the conveyancing process. Do not accept any bank details or a request for a funds transfer by email. Always check directly with your conveyancer before sending any funds so as to ensure that you have the correct bank details and figures before parting with your money.
10. Understand the key terms used in conveyancing
Exchange of Contracts: Both you and the seller sign the contract and a completion date is agreed. The buyer will hand over a 10% deposit at this stage to the seller via their solicitors You also agree a completion date that suits both parties. Once you have exchanged contracts, both parties are bound by the contract.
Completion: This is the date that the property changes hands, the seller needs to vacate the property usually by around 1pm and the buyer obtains the keys and can move in.
Freehold: is where the property is held without any restrictions and as of right.
Leasehold: The property is held for a certain amount of time, under a lease agreement and with payment of ground rent and/or service charges
Shared Ownership: You acquire a certain percentage of the property under a lease agreement and pay rent for the remaining percentage.