...The Legal Process 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.
