Tell me what to expect when buying a property….

Buying a property is a huge decision and whether you are a first time buyer or a familiar with the process, no two purchases are ever the same.  Let us help you through it. We cannot include everything for every transaction but this guide gives you the main points.

There are certain procedures which you will have to go through so that your conveyancer has complied with statutory and regulatory  obligations (the boring stuff) enabling them to get on with the job at hand. The top tip is to deal with the form-filling early on to prevent delays later on.  Some information is part of Anti-Money Laundering policy and is compulsory for anyone investing a substantial amount of money.

Expect to be asked for :-

Your administrative , financial and contact details.

Your photo and address identification.

Evidence of where any monies you are putting into the purchase is coming from.

Details of any estate agent involved.

Confirmation of whether you are buying the property jointly, we will ask you how you want to hold the property- joint tenants or tenants in common. We will explain the difference!

What happens next?

When we have your Seller’s solicitor’s details, we will request from them  a draft contract for approval. With the draft contract we should receive details of Fittings and Contents (what is being left at the property), Property Information Form (a general form covering for example alterations and utilities), copies of the title documents, lease (where appropriate) and any planning /building regulation consents.

And the next stage?

Time for us to check the paperwork and ask any questions we need to.  We also apply for searches; usually a personal regulated search, drainage search and environmental search but there may be others depending on the situation of the property.  We also approve the contract having checked the details and draft the Land Registry Transfer document which will eventually be the document the Land Registry will use to transfer ownership to you. To keep you up to date, we may send you a copy of our questions, copy of the Fittings and Contents List and a copy of the Title Plan- check them carefully!

What can I be doing in the meantime?

If you are financing the property via a mortgage, you will no doubt be sorting this out and considering amongst other things buildings insurance and life insurance options.  If you deal with the required paperwork promptly you can be hopeful that your mortgage offer will be issued promptly. Do make sure your mortgage adviser knows our details as usually  your chosen Lender will opt to instruct the same solicitor as you to save time and on administration. Happily we are on most Lender Panels, so make sure where we are acting for you, the Lender has our details early on.

Time also to make sure you are able to transmit deposit monies (usually ten per cent of the purchase price) to Kew Law LLP’s client account on short notice.  Beware the notice periods imposed by banks for drawing down on funds. Also make sure you have given us full details of where the money has come from before sending any funds through so that we can comply with Anti-Money Laundering legislation.  If your funds are being gifted, monies should come via yourselves, however we will have asked for details from the person gifting as well as yourselves. We will also need to make sure your Lender is happy with everything.

When do I sign? I want to move in!!!

Once we have satisfactory results to our searches and answers to our questions and your mortgage offer, it is time for us to report to you with the contract papers and results of our investigations with a request that( providing you are happy) you sign on the dotted line and for your deposit.   Bank details will have been provided on our headed paper and reconfirmed to you. We will also ask you for instructions on when you would like to complete – moving day! If you read on, you will see there is plenty to do between exchange of contracts and completion , so you need to allow enough time.

I have signed and sent everything back- what now?

Once you have sent your deposit and returned your signed contracts we will now try to secure your purchase by exchanging contracts with your Seller’s solicitors.  Exchange of contracts is when your purchase becomes legally binding. It will take place via a telephone call between solicitors who will confirm the price, deposit amount and completion (moving) date.  This call must take place to make things binding (signing does not do this). Exchange of contracts will only take place once the Buyer and Seller (and any one else in the chain) is ready. If someone in the chain is not ready everybody has to wait…..You should not commit to either removal charges (or any other financial costs) or giving notice on your property until exchange of contracts unless you are willing to take the risk that date you hope for or expect does not happen.  All matters are subject to exchange of contracts, meaning anyone can pull out up to that point without penalty (apart from costs personally incurred eg legal and survey fees to that point)

Hurrah- we have exchanged – what should I do whilst waiting for my completion day?

Make sure you have any removals booked, your buildings insurance is placed on risk and that it meets any requirements set by your Lender (if you have one).  You will need to make sure that you have ready for transmission any remaining monies required to cover your legal costs including Stamp Duty Land Tax which will be required in cleared  form prior to your moving day. We would also suggest that you consider inspecting the property shortly before completion to ensure nothing untoward has happened eg squatters have moved in!

In the meantime, we will be requesting drawdown on any mortgage money, preparing your final account and carrying out pre-completion searches.

My completion day is here- how will I know I can pick up the keys?

We will either ring you to confirm money has changed hands, or feel free to ring us at lunch time if you have not heard by then . Estate Agents usually hand over the keys where they are involved in a transaction or other arrangements may be made (eg  the Seller handing over keys if there are no Estate Agents). Keys will not be released until the Seller’s Solicitors have confirmed that monies have been safely received and legal completion has taken place. Legally the Sellers do not have to vacate until lunchtime, commonly between 1pm and 2pm depending on what is agreed in the contract.

Will I receive something to confirm I own the property and what about Stamp Duty and Land Registration?

While you are hopefully enjoying your new home, we will be finalising the legal formalities .  This usually consists of submitting your Stamp Duty Land Tax Return and paying the Stamp Duty Land Tax.  We will also apply to the Land Registry to formalise your ownership of the property and any mortgage. If you are buying a flat (leasehold property) we will probably need to write to the Freeholder and/or Management Company too.

Once we have had your confirmation of registered ownership and have received any awaited acknowledgments, we will write to you with a copy of your title to the property and to confirm we are closing your file.

The End