A guide to buying property
A helpful guide to buying property
Buying a property can be a very stressful, worrying and time-consuming experience, regardless of whether you are a first-time buyer or have moved many times. The most common complaint that we receive from our new clients about other conveyancers and solicitors is that they were not able to find out what was happening with their transaction. It was always subject to mysterious delays and, if they contacted their conveyancer to ask why, they were given a variety of reasons ranging from waiting for search results and phone calls to needing signed documents or a fax from the other party’s solicitors. There was never any explanation of why these were needed or what they were used for and this caused an enormous amount of frustration as our clients felt that their former conveyancers were simply not doing what they were supposed to.
The reason for this entirely understandable frustration is that their conveyancer simply never took the time to fully explain how the process works. We believe that if you understand exactly what is happening at each stage then you have a better understanding of the reasons for delays. That’s why we always make sure that you are completely happy and fully understand the reasons behind any delay. We find that, if you know why a delay is happening and exactly what we are doing to resolve it, then you can be more confident and relaxed about the progress of your transaction.
We have decided to write this guide to further this process. We hope that you find this guide invaluable, whether or not you are a client of ours. Please tell any friends, family or colleagues who are thinking of moving about this guide and we can help make their transaction less stressful. As always, if you have any questions, comments or suggestions please feel free to contact us. We welcome your feedback and hope to talk to you soon.
First Steps
As soon as you start thinking about buying a house there are many things that you need to consider. There are the obvious things such as where you want to buy, how much you want to spend, and the type of house you’re looking for. But there are other things that, if dealt with now, can save a lot of time later in the transaction.
Choosing a solicitor
Other steps
If you will be using a mortgage to complete your purchase then arranging this is one of the very first things that you need to do. The sooner that the mortgage is arranged the better. This means that if there are any problems with the offer they can be sorted out in plenty of time. Sometimes lenders can make fairly restrictive and time-consuming requirements in their offer and the sooner that you, and the solicitor, are aware of these, the easier they are to resolve. We would strongly recommend that you arrange a mortgage as soon as you find a property to buy.
It is also important to remember that your solicitor is not a financial advisor and will not be able to advise on whether your mortgage is suitable, affordable or appropriate for you. The only areas that your solicitor can advise on are the legal aspects of your mortgage.
Be aware that your solicitor also acts for your mortgage lender. In practice this usually doesn’t cause any problems. They can arise however when there is a conflict between what is best for you and best for your lender. This can cause what is known as “a conflict of interest”. The most common example seen is when the client gives us some information that the lender should know but asks us not to tell the lender. For example the client may intend to let the property following completion but not tell the lender. In this situation it is clearly in the client’s best interest for the lender not to be told, but it is also clearly in the lender's best interest to be told. We have a duty to act in both parties' best interests, but in this case our client's and lender's best interests directly conflict. In this kind of situation we will, in all likelihood, immediately stop acting for both clients. We will not be able to tell the lender why, as we still have a duty of confidentiality to the client, but the likely effect is that the lender will know that there is a problem and withdraw the mortgage offer.
Stages in the transaction
First things first
Once you have received your estimates from the solicitors you contacted, and have chosen the one you think is best, there are a number of things you need to do straight away. The solicitors will want to get your written instructions as soon as possible and will usually have sent you a client instruction form with the estimate. Complete this as soon as you have decided which firm to use and return the form as soon as possible.
There are some things that the firm will ask you for straightaway and if these are sent with the form it will save time. The two most important things are proof of identity and a cheque for any disbursements that are required upfront.
Proof of identity will usually be a passport and two utility bills or bank statements for each client. These can be mailed or dropped into the firm’s office. Be aware though that the solicitor will need to see the originals and take copies for their own records. The solicitor might progress the transaction without proof of ID but will not be able to exchange contracts without having this on file. This can cause delays so it is very important that this is dealt with early in the transaction.
The contract package
While you have been doing all this, the solicitors acting for the seller of the property will have been preparing a contract package, consisting of a draft contract, property information forms and any other relevant information and documentation such as leases and planning consents. It is worth bearing in mind that this is a very common time for delays to occur, as your solicitors can do nothing until this package is received. They should chase the seller’s solicitors for this on a regular basis and should be able to tell you the reason for any delay. Sellers can be very slow at returning forms and there is little that either set of solicitors can do to speed this up. It may be worth contacting the estate agents and asking them to chase this as well, as they can sometime find alternative ways to speed things up.
In the case of properties with three or more bedrooms then the seller will be required to produce a Home Information Pack (HIP).
Once the contract package has been received your solicitor will provide you wish a copy of all the relevant documents for your own information. We would strongly recommend that you look through all the paperwork provided, even if you don’t entirely understand it. If there is anything that you are not sure about or that raises any concerns then it is vital that you raise this with your solicitor and ask for further information. While your solicitor will report to you on any issues at the end of transaction, it is very important to remember that, while your solicitor might not consider something to be an issue, you may see it very differently. Besides if there is a problem, then it is much better to deal with it at the beginning than the end of the transaction when your solicitor reports to you.
