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  Conveyancing Guide - combined Sale and Purchase

When it comes to buying and selling your own home, ignorance is NOT bliss. It can be a stressful time, and not knowing what happens next only adds to the worry. To help with this we always make a point of keeping you informed throughout the transaction. This guide should help some more by giving you an overview of the main steps in a sale and purchase.

If you click on any of the "Jargon" words (in pink) an explanation of what they mean will pop-up.

Important - see the note at the bottom of the page about the effect of tying in your sale and purchase


On your Sale:-

Step1This will vary according to whether we prepared your Home Information Pack (or HIP) or not. If we didn't prepare the HIP for you then you'll need to know how we can see a copy of the HIP. If we have prepared the HIP then we'll have the necessary information ourselves. We will firstly need to get the information together for sending to the buyers solicitors. They'll need to know how to access the HIP themselves (this will contain a copy of the Title Deeds and the local authority and water searches, and the Property Information Questionnaire). In addition we'll need to draw up and send to them a Contract; a Property Information Form; and a Fixtures, Fittings and Contents Form. (and if it is leasehold an Additional Property Information Form)

Step2 The Property Information Form, and Fixtures, Fittings and Contents Form, are filled out by you, the seller (and don't confuse it with the Property Information Questionnaire!). They are questions about the property that you should be able to answer quite easily. However, if you are unsure about any of the questions then you should contact us.

Step3 We'd normally be able to instantly get a copy of the Title deeds from the Land Registry. In the unlikely event that we can't then if you have a mortgage, the Title deeds may be held by your bank or building society; if you don't have a mortgage then you should know where the deeds are kept. However we obtain a copy of the deeds we need to let the buyer's solicitors have a copy. This is to prove to them that you own the property, and to show them any rights of way or other conditions that exist.

Step4 Once we have the title deeds we can also prepare the Contract. This sets out the main terms of what has been agreed - your names, the buyers' names, a description of the property and the price. You will now have to wait until the buyer is ready to proceed.

Step5 Once the buyer and the seller are ready, a Completion Date (the 'moving date') is agreed. We will then exchange contracts (this simply means swapping the contract signed by the seller for one signed by the buyers - together with a deposit provided by the buyers). After contracts are exchanged the contract is binding and neither party can withdraw without incurring massive expense.

Step6 On the day of completion we receive the balance of the sale price, in return for which we will hand over the title deeds to the property. We will use the money to repay the mortgage the seller had on the property and secondly to pay the costs of sale - the Estate Agent's account and our own fees. If there is money left over then this will be sent to you on the day of completion, unless you are using this money on an onward purchase.



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On your Purchase:-

Step1We will firstly contact the seller's solicitors and ask for details of how we can get hold of the Home Information Pack (or HIP). This contains the local authority and water searches. If the property is in a mining area we'll have to request a mining search as well. Searches are simply a list of questions about the property that are sent to the local council, the water authority and the Coal Authority. When we get a copy of the searches from the HIP we'll have to make sure that the searches are OK for us to use (they have a shelf life of around 6 months and we'll need to make sure they haven't 'expired'. If they have run out then we'll need to request fresh searches). The HIP will also contain a copy of the title deeds. We'll also request the Sellers solicitor to let us have a contract, and questionnaires filled out by the seller.

Step2The only other thing we will need before we can proceed is a copy of your mortgage offer (if applicable). Once we have all of the relevant documents, we will ask you to sign the contract. If you are just buying then we will ask you to for a deposit as well (you will be told how much is needed), but if you are buying and selling then this will generally not be needed.

Step 3We will go through all the above documents with you (either in the office or by preparing a plain english report for you to read at your leisure) and explain any problems there may be with the property. Once you are satisfied that there are no major problems, then you are ready to exchange contracts.

Step4Once the buyer and the seller are ready, a Completion Date (the "moving date") is agreed. We then exchange contracts (this means swapping the contract signed by the seller for one signed by the buyers - together with a deposit provided by the buyers). Once contracts are exchanged the contract is binding and neither party can withdraw without incurring massive expense.

Step 5 On the Completion Date, we hand over to the seller's solicitor the remainder of the purchase money and in return receive the transfer document and the title deeds.

Step 6 We must then within twenty-eight days arrange for the payment of stamp duty (if appropriate) and, within two months of the completion date, apply to register the buyer's ownership at the Land Registry.


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Important Note - Tying in your sale and Purchase

Because you are tying the two transactions in together, there are a number of additional problems. There's nothing different legally, it's just that you have the problem of different sets of people with different priorities. As an example you may be selling to a private buyer, and buying from a builder.

Your buyer may want to delay it until he is ready to go, or until the school holidays, or until the end of his financial year. The builder on the other hand will generally be pushing you from the word go to get the purchase completed as soon as possible - the sooner the money goes into his bank account, the sooner he stops paying interest on an overdraft. You are the piggy in the middle, and can easily be pushed one way and then the other by each side.

There's no easy solution to any of this, as it depends on the personalities involved. As a general rule we would advise our clients to communicate directly to the other party, because it encourages people to be more considerate - when you have a legal adviser or Estate agent acting as a go-between, people can sometimes feel divorced from the consequences of their demands - in such circumstances it's very easy for everyone to get irate, and risk losing the sale or purchase.

This obviously depends upon the personalities involved - there are some people that it may be best not to talk to! Most importantly, if you do agree something directly with the other party, then make sure your solicitor knows about it as soon as possible - it may not be possible or legal!

Problems will often occur when completion dates are being set - now you have a number of people involved some form of compromise is usually inevitable.

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