Enquiries
made by the solicitor or, in England and Wales, licensed
conveyancer
Once you have instructed the solicitor or, in England
and Wales, a conveyancer, the seller’s solicitor
or the licensed conveyancer draws up a contract which
will eventually be signed by you and the seller.
However,
before the contract can be signed, your solicitor or
licensed conveyancer must make sure that there are no
problems with the ownership of the property, rights
of way, access, or future developments in the area that
might affect the property.
This
is called ‘making enquiries and searches’.
The solicitor or licensed conveyancer makes the enquiries
and searches as follows:-
·
local searches. These are enquiries made to
the local authority (or in Northern Ireland, the appropriate
government department) about any matters which affect
the property which involve the local authority, such
as whether there is a compulsory purchase order on the
property.
Local
searches also include questions about any proposed changes
or development in the area that might affect the property
such as roads, housing, shops. During the local search,
the local Land Charges Register (Registry of Deeds in
Northern Ireland) is also checked. This gives information
about any matter which affects the property such as
tree preservation orders, if it is a listed building
or in a conservation area; and
·
enquiries made to the seller by the solicitor or, in
England and Wales, a licensed conveyancer.
These are a set of standard questions about the property,
boundaries, neighbour disputes and fixtures and fittings
that will remain in the property. There may also be
additional questions that the solicitor or licensed
conveyancer thinks are necessary, such as the transferability
of guarantees for any work done on the house, for example,
a damp proof course; and from the Land Registry.
Arranging to pay the 10% deposit
Whilst the solicitor or, in England and Wales, a licensed
conveyancer is making the enquiries, you should sort
out how you will pay the deposit that has to be made
when the contracts are exchanged.
This
deposit is usually 10% of the price of the home. However,
it is sometimes possible to come to an agreement to
pay a smaller deposit. If you are also selling a house
it is usually possible to put the 10% deposit on the
property being sold towards the deposit on the property
you are buying.
If you are unable to provide the 10% deposit it is possible
to use a ‘deposit guarantee scheme’. Your
solicitor or licensed conveyancer can arrange this with
an insurance company.
If
raising the deposit may be a problem, you should discuss
the options with your solicitor or licensed conveyancer.
Alternatively, you could consider borrowing the money
for the deposit from elsewhere, for example, from relatives
or a bridging loan from a bank. However, the amount
of interest you will have to pay for a bridging loan
will be high and you should check how much this arrangement
will cost.
Insuring the property
You should make sure that buildings insurance is arranged
from the date of exchange, because once contracts have
been exchanged you are responsible for the property.
You may be able to get information on buildings insurance
from your mortgage lender, solicitor or, in England
and Wales, a licensed conveyancer.
Exchange of contracts
The final contract between you and the seller is prepared
when:-
· the solicitor (or licensed conveyancer) and
you are satisfied with the final outcome of all the
enquiries
· any surveyor’s report has been received
and any necessary action taken
· the formal mortgage offer has been received
· arrangements about the payment of the 10% deposit
have been made
· the date of completion has been agreed.
You and the seller each have a copy of the final contract
which you must sign. These signed contracts are then
exchanged. At exchange of contracts both you and the
seller are legally bound by the contract and the sale
of the house has to go ahead. If you drop out, you will
lose your deposit.
You should make arrangements for the supply of gas,
electricity and telephone service and make sure that
the seller is arranging for final meter readings to
be made.
Completion
Completion of the purchase usually takes place about
four weeks after exchange of contracts, although it
can be earlier. On the day agreed for completion:-
· the mortgage lender releases the money
· the deeds to the property are handed over to
your solicitor or licensed conveyancer
· the seller must hand over the keys and leave
the property by an agreed time.
The
solicitor or licensed conveyancer (in England and Wales
only) will usually send their account to you on, or
soon after, the completion date.
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