The first thing you should do once you’ve decided to move home is instruct your conveyancing solicitor.
If you’re selling then this will give your solicitor the chance to draft the contract of sale and prepare the documentation that will be required to complete the transaction.
As a buyer you want to be able to move quickly as soon as you find the place you want, so it’s a real advantage to have your solicitor ready to go.
You should also get a fixed fee quote. This is very important as fees can quickly mount up, particularly if there are unexpected complications – solicitors’ time does not come cheap.
Make sure, as well, that “disbursements” (expenses) are added to the quote – these are mostly known in advance so it should be easy to add them.
The steps between offer and exchange
Even though your solicitor handles the legal process it’s good to understand the basics so that you know what’s going on and what to ask.
Below is the broad outline of what happens once an offer has been made up until completion.
1. A copy of the draft contract is sent by the seller’s solicitor to the buyer’s solicitor.
2. A copy of the HIP is sent by the seller’s solicitor to the buyer’s solicitor (who will give a copy to the buyer).
3. Buyer’s solicitor reviews the HIP, carries out property searches and looks for information affecting the property
4. A property valuation will be carried out by the buyer’s mortgage lender.
5. Buyer gets survey done (optional, but advisable)
6. “Preliminary Enquiries” are sent by the buyer’s solicitor. These have to be answered honestly by the seller, however, if the seller does not know the answer to a question they can simply say that they don’t know.
7. As soon as searches are completed and enquiries answered, and once the contract has been agreed, the parties are ready to exchange.
8. Buyer and seller each sign a copy of the contract and “exchange” them. The solicitors usually take care of the exchange part so people don’t all have to be in the same place
9. The buyer pays the deposit – typically 5 – 10%.
The contract is now legally binding. Neither party can pull out without being in breach unless they were misled into entering it.
What happens at Completion?
At completion the property actually changes hands. The buyer will pay the outstanding balance of the purchase price, while the seller will hand over the keys.
The buyer’s solicitor arranges for Stamp Duty Land Tax (SDLT) to be paid and registers the property transfer with the Land Registry.