. . . Moving Home - The Legal Process For England
& Wales Continued
Once all these enquiries and searches are complete and
satisfactory, the “purchasers” conveyancer will ensure that
financial arrangements, such as the mortgage offer, are in place so that the
purchase price can be paid on completion, with the date proposed inserted in
the draft contract. At this stage, the deposit, normally 10% of the purchase
price, is forwarded to the “sellers” solicitor. If the mortgage
advance is more than 90%, the balance is normally sent. The purchaser signs the
contract which is sent with the deposit.
The “sellers” solicitor will ensure his client is
ready to be committed. If so, a contract in identical terms is signed and
exchanged with the purchaser. Both parties are now legally bound and neither
can back out, without consent of the other, as there would be a breach of
contract.
The next step is for the “sellers” solicitor to send
proof of ownership of the property, normally the lease or title deeds. The
“purchasers” conveyancer will check ownership and that it may be
transferred to the “purchaser” in terms of the contract, ensuring
there is no undisclosed mortgage and the seller is not bankrupt. S/he will then
prepare a Transfer Deed or Conveyance, to transfer ownership to the purchaser,
signed by the purchaser and sent to the “sellers” solicitor for
signature by the seller and return. Normally, prior to completion, the
purchaser will receive a statement of account from his conveyancer setting out
the financial position, taking into account any pre-contract deposit paid to
the estate agent and the deposit paid on exchange. On the day agreed for
completion, the balance of the purchase price is paid to the
“sellers” solicitor, normally electronically. The keys will then be
released to the purchaser who becomes liable for the Council Tax and all other
outgoings from that date.
Even with the best preparation, there are delays inherent in the
system which ensures that each side has the bargain they agreed, without any
hidden liability surfacing after completion. Selling normally entails another
purchase at the same time. Conversely, your purchaser, unless a first time
buyer, is trying to sell and cannot exchange until his own property has been
sold to provide the purchase money and/or a mortgage has been obtained. Apart
from delays in searches and enquiries, being involved in a chain of
transactions means you can only move at the speed of the slowest link in the
chain. We will do everything we can to smooth out the delays that inevitably
occur. Your solicitor/conveyancer will do their utmost to keep you informed of
progress. But always ask them the reason for delay; they are there to help and
keep you fully informed.
