RESIDENTIAL CONVEYANCING FAQS
Residential Conveyancing Questions - Moving Home Questions
Here you will find the answers to the most commonly asked conveyancing questions. Please feel free to contact us using the information below if you would like more information.
What will it cost me to move house?
It is important that you get a clear picture of the likely costs to you of moving house. When we provide you with a quotation we will set out exactly how much you have to pay for our services, and will separately details the other costs you will incur, such as local search fees, stamp duty etc
We have set out below the disbursements (expenses paid on your behalf by ourselves) involved in a typical freehold sale at £100,000.00 and freehold purchase at £150,000.00. We would be happy to provide you with a written estimate of our costs and the disbursements involved in your own particular circumstances.
What is the difference between exchange of contracts and completion?
Most people's aim is to ensure that they sell their current home and complete the purchase of a new home at the same time. When you see a property that you wish to buy, you will make an "offer". When somebody wishes to buy your house, they will make an offer. You will both then instruct solicitors to prepare the appropriate contracts and to carry out such searches as are necessary. You may wish to have a survey on the property that you are buying and the buyer of your property will almost certainly require a survey. When both parties have reached a point where they are ready to commit to the purchase, you are ready to "exchange contracts". We will then have to ensure that all of the other people in the "chain" are ready to go at the same time. When all the people in the "chain" are ready to go, the parties "exchange" contracts. This literally means swapping identical documents (called contracts!) and where you are purchasing, paying a deposit, usually 5% or 10%. Once contracts have been exchanged, you are committed to the deal. If you pull out of your proposed purchase, you will undoubtedly lose your deposit and may be sued for compensation. If you try to pull out of your sale, you could be forced to complete the deal.
Completion is almost the last stage of the process. It is when you are required to pay the balance of the purchase price (and receive the purchase price when you are selling). Between exchange and completion, there are a number of tasks that have to be completed, including obtaining from your lender (if you need a mortgage) the money to enable you to complete, and some final searches as well as preparation of the Transfer document.
Do I need a survey?
If you are getting a mortgage on the property that you are buying, your lender will almost certainly require a mortgage valuation. Whilst this is conducted by a survey, it is not necessarily a "full survey". All that your lender is concerned to find out is that the property is worth what they are lending, i.e. that their loan is "secure". It is often possible for you to pay an additional fee to the same surveyor and request that he prepare a "Home Buyer's Report" or a full survey. You should take advice as to which would be most appropriate. A house purchase is likely to be the biggest investment that you ever make. Could you afford the cost of a new roof two weeks after you have moved in?
What happens if I haven't got 10% of the purchase price to exchange contracts?
You should remember, as in our typical example referred to earlier, you will receive 10% of the purchase price from the person buying your house. You will only have to find the balance. It may well be possible to negotiate with the other party to accept what you receive as a deposit as a full deposit on the property that you are purchasing. Parties are now a lot more flexible in respect of deposits than they used to be.
Why have I had to prove my identity before I can buy a house?
Solicitors, in common with many other businesses (banks, building societies, accountants etc) are required by law to verify the identities of all clients. Failure to do so CAN result in this firm's "money laundering reporting officer" facing criminal prosection. The requirement was introduced by the Proceeds of Crime Act 2002 and the Money Laundering Regulations made thereunder and it is intended to ensure that we do not become unwitting parties to the attempts to "launder" dirty money (ie the proceeds of crime).
We usually seek to verify our clients' identity by a search of an electronic database. This simply confirms that you exist and live where you say you do. Sometimes, for a variety of reasons or no reason at all, you may not verify. In that case, we have to ask to see you (and copy) some form of "photo ID" (passport, driving licence) and other documents to confirm your address (bank statements, utility bills etc). It's nothing personal! It is however a legal requirement.
How long will it take?
It is impossible to give any realistic guidance as to how long it will take to buy and sell a house. If you are involved in a lengthy "chain", it will almost certainly take longer to get all the parties ready to a point where they can exchange contracts. Exchange of contracts must be done in order so that you do not over commit yourself to buying somewhere (on an agreed date) before you have agreed to sell your first property (and thereby getting your hands on the sale proceeds!).
It may be that one party is not in a particular hurry (perhaps they are waiting for a house to be built). It may be that one Building Society is being particularly slow in issuing a mortgage offer or it may be that one of the parties in the chain is having difficulty in getting their finance arranged. There can be any number of different problems, many of which will not be the fault of your solicitor.
Can I choose the completion date?
As with all business transactions, decisions such as this must be reached between the parties. You cannot dictate a particular date. If you are too inflexible, you could well find the other party pulling out of the deal.
Do I need a Home Information Pack (HIP)?
As at September 2007 a Home Information Pack is required if you are attempting to sell a property with three or more bedrooms. A Home Information Pack contains information to assist buyers such as an Energy Assessment Report and searches. We can assist in obtaining a HIP should you so wish.
Would You Like A Free Quotation?
For a free quotation please call us on 01243 786 668 or complete our on line quotation form.