Make your move a happy one
In a two part article Julie Tomasik, head of Ansons LLP's residential property department explains the legal process involved in buying and selling a property. This article focuses on the process of selling a property.
Once an offer on a property has been accepted and solicitors' details have been exchanged by the two parties the legal and administrative process associated with transferring the ownership of land or buildings from one owner to another can begin. This process is referred to as conveyancing.
Although it is possible to do the conveyancing work yourself most people hire a solicitor or licensed conveyancer as the advantages of instructing a professional to successfully complete the purchase and to resolve any possible problems normally outweighs the cost.
Selling
Stage 1
1. Once the seller has instructed a solicitor, they will normally be asked to complete a 'Property Information Form' and a 'Fixtures, Fittings and Contents Form.' If the property is leasehold there will be an additional form.
2. As soon as the seller's solicitor has received the completed forms they will obtain the seller's deeds, a copy of the Home Information Pack and a redemption statement (the outstanding mortgage balance) for budgeting purposes.
3. The seller's solicitor will enquire if the seller has made any alterations to the property such as replacement windows or extensions. If they have the solicitor will ask the seller to provide them with any guarantees or other documents not held with the title deeds e.g. damp and timber reports, planning consents for alterations and extensions etc.
4. A draft contract will be prepared and sent to the buyer's solicitors, who will then carry out various searches. The buyer may request a survey of the seller's property and may have to arrange mortgage finance. The seller's solicitor must answer any questions the buyer's solicitors may ask. Once these questions have been answered and the buyers are in a position to proceed, the seller will then be asked to sign the contract and consider a moving date.
Stage 2 Exchange of Contracts
5. Once everything is agreed including completion date and the contract is signed, the solicitors can proceed to exchange contracts. It is at this stage that the seller becomes legally bound to sell their property and the buyer becomes legally bound to purchase the property. It is still the seller's responsibility to maintain and insure the property. To make the contract binding the buyer's solicitors will send a deposit to the seller's solicitor, which would be forfeit if the buyer fails to complete. If the seller fails to compete they could be sued through the courts for any financial loss suffered by the buyer.
6. The seller's solicitor will approve the transfer deed and ask the seller to sign it. The solicitor will apply for any mortgage redemption figure and prepare the final accounts. They will also apply for the seller's estate agents account and forward it to the seller for approval.
Stage 3 Completion
7. On the completion date (this is the date of the move and the exchange of keys) the seller's solicitor will receive the balance of the sale price, in return for which they hand over the title deeds to the buyer's solicitor. Very often the seller and buyer will contact each other to arrange what time the house will be ready for the buyer to move in. This is usually around lunchtime.
8. The seller's solicitor will redeem (pay off) any mortgage out of the sales proceeds, pay the estate agents account, collect their legal fees and any outstanding search fees and forward any left over money to the seller, unless it is being used for a related purchase.
For further information on the legalities of buying or selling a residential property, please contact Julie Tomasik of Ansons LLP on 01543 263 456 or e-mail jtomasik@ansonsllp.com or visit www.ansonsllp.com.
