Buying property tips: Appointining a solicitor
The hard work starts as soon as you have made an offer and it has been accepted. The most important person in your life for the next crucial weeks will be your solicitor.
Your lender may insist on repairs being carried out before they will
release the money, you may need to find out if rumours about nearby
road development are true, perhaps your own survey highlights a structural
flaw which requires the offer price to be renegotiated. It is your
solicitor who will deal with this for you.
Once you've found the home you want you will need to appoint a solicitor
or licensed conveyancer to handle the purchase for you.
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You must provide the original deeds, the Land Registry Certificate,
of your property and any other relevant info such as service
charges. |
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If you have a mortgage on the property you are selling these
deeds will have been held as security by the lender. |
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The solicitor will ask the mortgage lender on your behalf
how much is needed to settle your mortgage. |
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You will be sent a list of official questions to answer about
your property which you must answer truthfully, as these form
the basis of the draft contract. These tell your purchases about
the boundaries, any changes made to the property, rights of
way, special covenants and so forth which might affect it. |
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Your solicitor will then draw up the contracts for everything
included in the sale including fixtures or fittings. |
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This will then be sent to the buyer's solicitor who carries
further investigations. |
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The legal documents, the 'title deeds', of your new home will
be checked. |
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An official search is carried out with the local authority
to see if they have plans which affect your home's value. |
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The solicitor makes sure any items included in the purchase
price are correctly itemised in the contract. |
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Make sure buildings insurance is in place at the time of Exchange
of Contracts. |
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Draw up contracts and liaise with the vendor's solicitor.
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Liaise with the lender (usually a bank or building society)
who is required to register their interest in the property during
the life of the mortgage. It is usual for the buyer's solicitor
to deal with any related legal work. |
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This is designed to find out anything which could affect the
value of the property. |
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It could include plans for new roads. |
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The search also checks planning consents and which mains services
are connected to the property. |
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The local authority charges for this. |
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Detailed plans of the exact location of a property and a record
of ownership is filed with the Land Registry and each owner
has a certified copy. |
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If there is a property, it also registers a lender's interest
as mortgagee. |
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To ensure that the seller has made no changes to the rights
affecting the property a final check will be made when you have
exchange contracts. |
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You are contractually obliged to buy the property once contracts
are exchanged. |
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Your solicitor holds your deposit which you pay at the time
of exchange. |
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You will agree when the sale is to be completed and if this
is not honoured then penalties can be imposed. |
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The contracts are only exchanged when your solicitor has received
satisfactory replies to their questions. |
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Often your sale or purchase will be dependent on others buying
and selling properties - and that is called a chain. |
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If this is the case the solicitors must coordinate transactions
so that completion of your sale and purchase take place on the
same day. |
Buildings insurance:
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Buildings insurance must be effective from the day of exchange
of contracts. |
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Otherwise you could be jointly liable with the previous owners
for any damage caused to the property after that date. |
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Once contracts are exchanged, you are expected to complete
the purchase even if the property is damaged. |
Life and mortgage payment protection cover:
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If the purchaser dies, life cover will pay for the sale, safeguarding
dependents. |
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Make sure you also have protection for accident, sickness
and unemployment from the point of exchange of contracts. |
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Enhanced cover - at a price - comes from income protection
or critical illness insurance. |
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This is the official record at the Land Registry that you
are the new owner. |
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Your solicitor prepares the document before completion. |
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When the Transfer Deed is completed it is sent to the seller's
solicitor. |
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The process of completion involves handing over: keys, Land
Registry certificate, and Transfer Deed. |
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Your lender holds the documents, as security against the loan. |
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In return your solicitor is sent the 'mortgage' funds by the
lender to pay for the sale. |
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The law requires that the Transfer Deed is officially stamped.
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The Government imposes a tax - stamp duty - on all properties
over £60,000. |
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This tax is paid by your solicitor and added to your bill.
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The stamped deed is then sent to the Land Registry to confirm
the new owner. |
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It also registers the lender's interest as the mortgagee. |
Moving house is always a stressful time, even when things go smoothly.
Here are a few tips for what to do if a problem does arise.
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If you find a serious fault which was not known at the time
of purchase, you first need to check the scope of the survey
you commissioned. |
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A lender's survey simply verifies the loan for the lender-
you cannot rely on it to find serious structural problems. This
is why many purchasers, particularly of older properties, prefer
to pay for a more expensive independent survey. |
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If you fee your surveyor should have found the fault, then
raise the matter with the surveyor's firm concerned. They will
have an internal complaints procedure. |
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Your surveyor will be a member of the Royal Institute of Chartered
Surveyors, so you can also involve their arbitration scheme.
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If the worse happens and structural faults arise after you
have bought your home - consult the Citizens Advice Bureau or
a lawyer and sue. |
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You may have a complaint over service, charges or financial
loss. |
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Consult the complaints procedure provided by the Supervision
of Solicitors, the Law Society itself or the Council for Licensed
Conveyancers. |
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Make sure you use one registered with the British Association
of Removers. |
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Ensure you are fully insured - either through their insurance
or your own. |
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Before commissioning one, check they are in the voluntary
Ombudsmen of Estate Agents scheme. Not everyone is but it helps. |
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As a seller, remember to ask family and friends about their
experience of local agents - do this before you sign any contract.
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Read any contract thoroughly before signing. |
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The 1991 Property Misdescriptions Act is designed to stop
incorrect or misleading descriptions. |
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New homes are guaranteed for 10 years under schemes run by
the National Building Council or Zurich assurance (01252 522000). |
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They also offer an arbitration service to stop disputes escalating. |
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You don't have to use an agent but you'll probably find selling
your home easier if you do. |
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Just remember that the agent is working for the seller and
is paid a fee based on the price you pay. |
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They are legally obliged to give an accurate description of
the property. |
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False or misleading information is a criminal offence and
you can report them to your local trading standards office. |
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If you are selling, check your contract carefully - particularly
any liabilities if you introduce a buyer direct. |
Useful links
Selling your home
First time buyers
In-depth mortgage guide
Property news
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