A simple guide to buying and selling –
The Introduction of HIPs has changed the way that some sales typically commence. Please use the following notes purely as a guide.
Once the offer has been agreed between seller and buyer –
1. Your agent will advise your chosen solicitor of the sale details by way of a Memorandum of Sale. This will be distributed to all the relevant parties (both parties solicitor, the seller and buyer).
2. The seller's solicitor will order the Title Deeds, office copies of the title, prepare a draft contract and ask the seller to complete what is known to most as protocol forms (fixtures and fittings list and property information forms). These will then be sent to the buyer’s solicitor
3. The buyer’s solicitor will apply for the local searches, environmental search, water search and any other they feel are applicable. They will also raise any initial enquiries based on the documents received thus far.
4. If a mortgage is required, the buyer should instruct their valuation report/survey via their chosen provider/lender.
5. Upon receipt of all of the searches and answers from the seller’s solicitor, the buyer’s solicitor will prepare a "report on title". This will detail everything relating to the purchase and should be studied by the buyer. An opportunity will be given to raise any further questions.
6. The contract will be drawn up in two parts. Each part is signed by the respective parties, buyer and seller. Providing the correct authorisation is granted, the buyer’s solicitor or appointed representative can sign the contract on behalf of the buyer should they not be available.
7. A completion date needs to be agreed by all of those concerned in the chain if there are more than two parties involved. A deposit is usually be required in order for exchange of contracts to take place, this deposit is likely to be in the region of 10% of the purchase price. Once all parties have confirmed their instructions to the respective lawyers, exchange of contracts can take place.
8. Exchange of contracts ensures that the sale or purchase is now legally binding.
9. The solicitors will now have many things to conclude but essentially the buyer and seller have done all they need to do. The utility companies and appropriate local council tax office need to be advised of the change of ownership by the seller and the removal company booked.
10. Upon completion the property becomes the ownership of the buyer. To allow completion to take place the remaining monies are telegraphically transferred. Upon receipt of these monies, the selling solicitor will authorise key release to the agent or seller.
Please note that the law can change and this should be used for guidance purposes only . Should you have any further questions then please refer them to your chosen solicitor. |
