| You've found your dream home, and had your offer | | | | clear any potential problems before you proceed to |
| accepted, what happens next? As purchasing a house | | | | complete. |
| is likely to be the biggest investment you'll ever make, it | | | | It should be the motto of any property solicitor that a |
| is important to ensure that the right legal processes | | | | home is bought to be sold. If all necessary enquires are |
| are followed in order that you can move in at the | | | | made before you are the legal owner (and providing |
| earliest opportunity and with as little problems as | | | | you do not create any potential problems during your |
| possible. | | | | ownership) the sale of the same property should be |
| 1. Preliminary Matters | | | | relatively straightforward. |
| Once you have instructed a solicitor to act on your | | | | 4. Mortgage Offer |
| behalf, Law Society and Governmental obligations | | | | During the above process your offer of mortgage |
| mean that there are certain identity procedures that | | | | may be produced by your lender. A copy will be sent |
| must be followed before your legal advisor can start | | | | to your home address and a duplicate will be provided |
| work on your transaction. Therefore please do not be | | | | to your solicitor. The latter will also enclose specialised |
| offended as your solicitor will ask you to provide proof | | | | documentation in order for your legal representative to |
| of your identity to their office. Normally production of | | | | request mortgage funds, secure your agreement to |
| your original (and in date) passport, driving license and | | | | the mortgage and to provide documentation back to |
| at least one utility bill or bank statement dated within | | | | the lenders offices once registration of the property |
| the last three months showing you current residential | | | | has been completed at HM Land Registry. |
| address should suffice. Further documentation may be | | | | Your offer of mortgage may also enclose a valuation |
| required depending on instructions received by the | | | | surveyors report. If not, you may have instructed your |
| solicitor from your mortgage provider (if indeed you | | | | own independent report through a surveyors office. In |
| are obtaining mortgage finance in order to purchase). | | | | either case it is advisable for you to provide this report |
| 2. Initial Paperwork | | | | to your solicitor. Although they will not be able to |
| At the beginning of the purchase transaction the main | | | | provide you with a professional opinion on the reports, |
| focus is to ensure that all parties involved in the matter | | | | it may help them in identifying further issues for |
| are aware of one anthers involvement. This is normally | | | | investigation with either the Estate Agents or the |
| covered by the production of the selling Estate Agents | | | | Seller's Solicitors. |
| Memorandum of Sale. This shows all parties names, | | | | 5. Signing the Contract |
| addresses and contact numbers (including Buyer, Seller | | | | Once all inquiries have been answered, all searches |
| and their personal legal representatives). If no estate | | | | and financial arrangements are in place, your solicitor |
| agent is involved then it is best to obtain this | | | | will invite you to attend their office with a view to |
| information directly from the Seller to pass to your | | | | signing contract documentation. The appointment will |
| solicitor. | | | | cover the solicitors full investigation of title, reference to |
| Once all contact details are finalised the Seller's solicitor | | | | any technical inquiries posed to the Seller's solicitors, |
| should provide a contract package to your legal | | | | the search results and mortgage offer (if applicable). |
| advisor for consideration. | | | | If you are happy to proceed with the transaction, you |
| The documentation contained within such contract | | | | may sign the contract. At this stage the agreement is |
| package is as follows - draft contract for approval | | | | not binding. |
| (normally in duplicate), HM Land Registry entries and | | | | If you are buying jointly with your partner or others, |
| official plan of the Title for the property concerned and | | | | consideration should also be given at this stage as to |
| Property Information Form and Fittings and Contents | | | | how the property should be held between you. There |
| Form completed by the Sellers. | | | | are two options in English Law - Joint Tenants and |
| For properties held on a Leasehold tenure then | | | | Tenants in Common. Your legal advisor will guide you |
| additional documentation by way of copy Lease, | | | | as to which option will suit your current circumstances. |
| Leasehold Information Form and Management | | | | 6. Exchange of Contracts |
| Company details (for the communal areas of the | | | | When all parties in the chain are ready to proceed to |
| estate) should also be produced. | | | | exchange your solicitor will ask you to agree / propose |
| In some circumstances a Home Information Pack (HIP) | | | | a date for completion. This will be the date when you |
| may be available for review by your solicitor. If that is | | | | get to move in to your new house. The date is |
| the case then the Seller's Estate Agent or legal | | | | finalised by negotiation will all other buyer's and seller's |
| advisor should pass this directly to them. You may | | | | involved in the chain. |
| have even been provided with a copy of this | | | | You should then provide your deposit to your solicitor |
| document yourself. | | | | (in situations where you have a related sale it is |
| 3. Investigation of Title | | | | common for the deposit offered on this transaction to |
| It is then down to your solicitor to start to raise | | | | be used on your onward purchase). |
| technical inquiries concerning the title and physical state | | | | You solicitor will then finalise exchange of contracts |
| of the property you are hoping to buy to the Seller's | | | | with the Seller's solicitors on your behalf. Now you are |
| solicitor on your behalf. Many of the inquiries raised are | | | | in a legally binding contract to purchase the property. |
| so technical in nature that for your solicitor to properly | | | | 7. Preparing for Completion |
| explain them you would require a lengthy history lesson | | | | Once you know the completion day, you can begin to |
| in Property Law. Therefore please do not be | | | | book removal firms, inform utility companies and other |
| concerned if you solicitor states that inquiries have | | | | interest parties of your change of address. |
| been made - without specifically listing them to you. | | | | 8. Completion Day |
| At this stage additional inquiries should also be made to | | | | On completion day, your solicitor will forward the full |
| the Local, Drainage, Environmental and Chancel Check | | | | amount of the purchase price to the Seller's solicitors |
| authorities. Again your solicitor will make all such | | | | by way of bank transfer. Once received, you have |
| applications on your behalf. The fees for such | | | | completed the transaction and you will be the proud |
| searches should be provided to your legal advisor | | | | owner of your new home! |
| once you are satisfied you are willing to proceed. This | | | | Your solicitor will ring to advise when all matters are |
| is normally after receiving a satisfactory survey or | | | | finalised and when you are able to collect the keys to |
| confirmation that mortgage funding can be achieved. | | | | your house. |
| Please be aware that the searches fees cannot be | | | | 9. Post Completion |
| retrieved once applied for. Therefore, if you decide to | | | | Once completion has taken place, your solicitor will pay |
| withdraw from the purchase transaction at this stage | | | | the necessary Stamp Duty Land Tax to HM Revenue |
| your search fees will be lost. From the results of such | | | | and Customs and will inform HM Land Registry of the |
| searches, your solicitor may be required to make | | | | change in ownership. When registration has been |
| further inquiries of the Seller's legal advisors to obtain | | | | completed, the Land Registry will produce a formal |
| information or documentation relevant to the property | | | | copy of your title showing your details as the |
| (such as planning consents for extension and | | | | registered proprietor (and if applicable, give brief details |
| alterations). | | | | of your mortgage provider). Your solicitor will forward |
| It is important to recognise that the above process is | | | | a copy of the update title to you for your future |
| absolutely necessary to ensure that there are no | | | | reference. |
| underlying problems that would prevent the purchase | | | | Buying a home can be stressful, especially if you are |
| of your property. If any problems are discovered | | | | also selling at the same time. Knowing the steps in the |
| (which sometimes cannot be resolved,) your solicitor | | | | legal process will help you to understand what's |
| may advise you to withdraw your offer to buy. | | | | required in an effort to reduce the strain for you and |
| However, this is a last resort. Every effort is made to | | | | your family. |