Buying a house is a tricky undertaking that requires one to be very cautious. Many home buyers rely on conveyancers to help them navigate the lengthy and complicated conveyancing process. This article will discuss the different steps of conveyancing that you will have to go through when buying a house.
Pre-Exchange of Contracts
During this phase, your conveyancer will contact the solicitor of the seller to get a draft contract. The draft contract contains details such as the price of the property, details of fixtures or fittings and information on the title deed. Solicitors from both sides will also agree on what information to include in the contract. For instance, they will decide on the deposit amount for the house. You should ask for a copy of this contract and review it to ensure that all the details you wanted are included. It is during this phase that you are allowed to raise your objections. Your conveyancer should also determine whether the owner of the property is legally allowed to sell the house. At this point, your conveyancer will have conducted a survey of the house to determine whether there are flaws or any alarming problems such as a leaking roof, mold and poor water supply. It is at this stage that a final contract, which is agreeable to both sides, will be created.
Before you exchange contracts, your may be required to secure a buildings insurance policy. This is because after you exchange contracts, you will be responsible for the house, and it is important to insure it from both expected and unexpected occurrences. Many lenders require borrowers to get building insurance before they can finance them to buy a house or property.
Exchange of Contracts
During this phase, you should provide a deposit for the house. You will have to pay a deposit of up to 10% of the property's worth. The exchange of contracts creates a legally binding relationship between you and the seller/owner of the property. It is during this time that the date for completing the transfer is set.
After you have exchanged contracts, the seller is legally required to sell their property to you, and they cannot accept other offers.
Before completion, your conveyancer will draft a transfer deed. This is a document that states that the ownership of the house has been transferred to you. The transfer deed is sent to the seller so that he/she may append his/her signature. Your conveyancer also ensures that sale is properly registered and the house is not in mortgage arrears. On the final day, your conveyancer will present the remaining balance to the seller. At this point, you will get the title deed to the house and are at liberty to move in whenever you please.Share
29 December 2015
My name is Jeanette Kennan. I have been a high school legal studies teacher for many years. As such, I am fascinated by legal cases I come across in the media. Family and friends often consult me about minor matters related to the law and although no expert, I can often point them in the right direction. It occurred to me that there may be other people out there who are not aware of basic legal issues. After all, you probably don't think about legal matters related to death, accidents or crimes until you find yourself in a crisis situation. This blog is designed to give you some introductory information about a range of legal topics. Hopefully, it will help you to be prepared and informed should a legal concern arise. I really appreciate you breaking in to my humble little site. Please enjoy.