Home Buying And Selling Conveyancing
Conveyancing is a legal process that covers the transfer of ownership of a residential or commercial property from one individual to the next. The legal process commences with the services of either a licensed conveyancer or a conveyancing solicitor.
Home buying and selling conveyancing process comprises three stages namely:
- Pre-Exchanging Contracts
- Exchange of Contracts
Pre-Exchange Contracts Phase
The phase centers around the change of details between the solicitors representing the buyer and the lawyer representing the seller.
The legal aid acting on behalf of the buying party gets a draft contract. He later sends it to the purchaser. The draft outlines:
- The seller’s details
- The property price
- The fitting included in the property
- The seller’s title deed details
The conveyancer representing the buyer will confirm terms indicated in the contract form and make an application to the Local Authority. The application is of the necessary searches. The searches include; where the building sits.
The Water Authority and Land Registry are places searches take place. The solicitor also makes numerous inquiries with the solicitor from the selling side. Some of the inquiries include:
- If there are on-going disputes concerning the property on sale?
- Will send a mortgage deed to the buyer for signing
- The signing renders the contract binding as opposed to a mortgage agreement “In Principle.”
The trading parties arrive at a completion date. They deliberate when the buyer is at liberty to move to the property.
The property purchaser is legally bound to the property when contracts change hands. The point the shopper pays a non-refundable deposit. In most cases, the amount is ten percent of the property value.
Until this point, the buying party or the selling party may attempt to negotiate the purchase price, the date of completion, and various agreements. He/she can pull away from the transaction without any obligation of compensating the other party.
The solicitor acting on the behest of the buyer will work on a transfer document and send the paperwork to the buying part for signing. The deed transfers the legal ownership of the house/home from the seller to the buyer. Upon agreement, the deed is then signed by the two trading parties.
Conveyancing solicitor is acting on behalf of the shopper, will conclude mortgage arrangements, and prepare the money for transfer to the vendor after the completion. The time when Land Registry Fees is present.
The solicitor pays the Stamp Duty that is the Land Tax on buying property that is worth more than an amount of a hundred and twenty- five thousand pounds as of December 2014.
On the day of completion, the shopper’s legal representative will send the monies owes to the vendor’s lawyer. Transfer deeds and title deeds together with the property keys will go to the new owner.
Gazumping and Gazundering
Gazumping is an action that happens when the buying party places an offer on the property. The proposal goes through. However he/she loses to another shopper who bids a higher offer.
This action takes place after the acceptance of an offer. But contracts exchange is yet to take place.
Gazundering: an action when the shopper takes down the offer to buy the property before exchanging contracts. The seller has no option other than accepting the lower price if he/she wishes to go on with the sale.
A buyer can lower Gazumping risk by undertaking the following actions:
- Retaining serves of a real estate agency with policies against Gazumping
- Demands that the property is take off the market
- Take Insurance Against Gazumping
Draft pre-contract deposit agreement: the draft binds the selling and buying parties to pay 1.5% of the price of the property. Should any of the trading parties’ exit the process, the remaining party takes both deposits.
You can also come up with a “Lockout Agreement”. It prevents the seller from selling the home/house to another buyer so long as you change the contracts within a set period.
A vendor can minimize Gazundering risks by creating great rapport with the buying party. Truthful relationship ensures that there is no room for a Gazundering takes place by making sure contracts change hands fast.