Getting advice
Buying a home is always an exciting prospect, but without the help of a solicitor it can also be a legal minefield. Your solicitor is qualified in all areas of property law and is there to help you avoid potential problems and to protect your interests at every step,from making an offer to getting the keys to the door.
Ideally you should contact your solicitor as soon as you think about buying a home.
Costs
Charges can vary between solicitors and will depend on the type and difficulty of the sale. Before you decide who to use, ask for an estimate of their fees.You should bear in mind that you may have to pay more at a city centre practice as costs are higher or for a more experienced solicitor, so the cheapest quote is not always your best option. Remember that you will also need to pay a variety of other expenses such as stamp duty, VAT, Land Registry fees and other search fees.
What your solicitor will need from you
Once you have chosen a solicitor, they will ask you for a variety of details and documents. These could include:
• some personal identification;
• the price of the property;
•any factors that may influence the exact time you want to buy the property (for example: to coincide with school holidays); and how you are planning to pay for the property.
They will also need to know whether:
•you have applied for a mortgage;
•you plan to carry out work on the property;
•you are buying with someone else;
•the seller is buying another property; and
•you have a property to sell.
Contacting the seller's solicitor
Your solicitor will then contact the seller's solicitor, who will in turn supply your solicitor with a draft contract and a copy of the title deeds to the property. With these will be a form listing the fittings and contents which will be included when you buy the property. You will need to check this list carefully.
Searches
Your solicitor will make various searches, including enquiries with the local authority. These can help to reveal any planning issues affecting the property,
such as road improvements and details of any planning permission granted on the property. Your solicitor may also carry out flooding, mining and contaminated land searches if necessary. If any of these searches show matters of concern, your solicitor will let you know.
Leasehold properties
If the property is leasehold (particularly common when buying a flat), there will be detailed lease terms and conditions. Your solicitor will need to check these
carefully and will also make enquiries with the seller's solicitor or the managing agents of the property about what service charges and management costs you will have to pay.
Survey advice
If you are applying for a mortgage, your mortgage lender will need an independent valuation of the property. Usually they will appoint their own surveyor to do this, but you will have to pay for it. Remember that this is a valuation and not a survey.You should consider appointing your own surveyor
(possibly the same person as the valuer) to carry out a survey on the property as it is up to you to satisfy yourself that the property is structurally sound before you buy it. If the survey reveals that building work is needed, you should tell your solicitor as this may allow you to renegotiate the price.
Mortgage deed and terms
Your mortgage lender will also need a mortgage deed. You should read the mortgage deed, offer letter and mortgage conditions very carefully. Your solicitor will explain them to you.
Signing the contract
Your solicitor will then report back to you on all the investigations he or she has made for you so far. If you are still happy to go ahead, your solicitor will finalise the terms of the contract and explain it to you. You then need to sign the contract and provide the deposit money - usually between 5% and 10% of the
purchase price.
Exchanging contracts
This is the crucial moment of the agreement between you and the seller. Your solicitor and the seller's solicitor exchange contracts so that you have the
contract the seller has signed and the seller has the contract you have signed. If you want to withdraw from buying the property after this stage, you may have to pay financial penalties. The solicitors will also set the date for completing the sale at this stage.
Final balance
Between exchanging contracts and completion, your solicitor will take the mortgage money from your lender and the rest of the money from you. This will
include costs, VAT, Land Registry fees and stamp duty (if any). At this stage your solicitor will carry out final searches and make arrangements with the seller's solicitor for paying off any existing mortgages on the property. Your solicitor will also prepare the transfer deed and send it to the seller's solicitor for signing.
Completion
This is the final stage in the conveyancing process when your solicitor hands over the money to the seller and the keys are released to you. Your solicitor will pay the stamp duty and Land Registry fees for you and register your ownership at the Land Registry. This registers the interest of your mortgage lender and
records you as the new legal owner of the property.
Related legal matters
Buying a property may introduce other related legal matters. For example:
• if you are buying a home with someone you are not married to,you may need to enter into a 'deed of trust' to set out what share of the property each person owns;
• if you do not have a will, you should consider making one;and
• if you do have a will, you may need to update it.
In all cases your solicitor can offer you legal advice as part of a complete professional service.
Contact
For advice on this matter please contact:-
David Nuttall BA (Hons) Tel: 0161 368 1559
E-mail: webmail@harrisontownend.co.uk
Authorised and regulated by the Financial Services Authority. Regulated by the Law Society. Nothing in this web site constitutes legal or investment advice or a recommendation by Harrison Townend & Ormeshers or any of it's employees. You should always seek independent financial advice before making any investment decisions.
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