OFFER TO COMPLETION S U P P O R T I N G YO U D U R I N G T H E S A L E O F YO U R P R O P E R T Y
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Offer to completion – Part Two
Part Two - Offer to completion
Congratulations on having a sale agreed for your property! In our first booklet we guided you through the process leading up to accepting an offer. Now we will take you from conveyancing through to completion. It’s at this stage that the solicitors take over and it is really important that you keep in close contact with them, and ensure that they are dealing with the transactions effectively and in a timely way. Delays at this stage are very frustrating for all concerned.
SALE AGREED – THE NOTICE OF SALE
If you haven’t already instructed solicitors, then we’ll need those details from you too.
Now the offer has been accepted, we will check the buyer’s personal and financial credentials, before issuing a Notice of Sale and circulating that to the parties and their solicitors. We also check their identity and seek proof of their means to proceed, and details of their legal representatives.
SURVEY
We inform buyers of these requirements at the earliest opportunity, but please be aware that it can sometimes take a little while for buyers to collate the original information that we need and get it to us.
This is often done concurrently with the start of the legal process, but some buyers like to have this done before that is done.
You should note that it is a legal requirement to take these steps, to satisfy anti-money-laundering regulations.
Part Two - Offer to completion
CO NG RAT UL A T I ON S!
Once all this is in place, we’ll circulate a Notice of Sale which sets out the agreed terms. T his is sent to the parties and to the solicitors acting for them.
Once a sale price has been agreed, the buyer may have a survey of your property, to review its’ physical condition and be advised on the value.
If issues arise on the survey, the buyer may wish to renegotiate the agreed deal. If that occurs we will be on hand to advise you on the way forward.
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Part Two - Offer to completion
THE LEGAL PROCESS (CONVEYANCING) What is conveyancing? It’s the word for the legal process of transferring ownership of land. Your solicitor begins by obtaining the Title Information from the Land Registry or the person who holds your unregistered deeds (this can been done earlier if you appoint a solicitor at the start).
Exchange of contracts can sometimes be delayed because there is often a “chain” of buyers and sellers and everyone in the chain has to be ready to allow it to happen.
You will be asked to complete a Property Information Form and Fixtures, Fittings & Contents Form. These provide general information about your property and an inventory of the fixtures and fittings included in the sale price. Your solicitor will then prepare a contract stating the terms of the deal. They send this to the buyer’s conveyancer with up to date details of title and these forms. The buyer’s conveyancer then
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undertakes the work we refer to below. Your solicitor will liaise with you on any enquiries raised by the buyer and respond to them. Exchange is the physical exchange of the contract, so that the buyer gets the seller’s part and vice versa; it is done by the conveyancers agreeing on the phone that exchange is effected and the contracts follow in the post. Prior to reaching exchange of contracts, a date for completion – or moving date – is fixed. The buyer pays a deposit on exchange of contracts (usually 10%). Your solicitor will hold the deposit until completion, but it can be used in connection with any related purchase,. At the point of exchange, the transaction is legally binding.
These include: -
happening from the selling side, the buyer’s conveyancer is concurrently looking after things for the buyer.
After exchange, your solicitor will deal with any further questions raised by the buyer’s conveyancer and approve the Transfer deed, which you then sign. They will also seek a loan repayment figure from your lender - if you have a mortgage - and ask you to check that it’s right.
The buyer will normally begin by getting your property surveyed to reassure themselves that it is in good condition and that they are paying a reasonable price. If they are buying your property with a mortgage, then the lender will also commission a valuation to establish the value of the property for lending purposes.
On the completion date, your solicitor receives the balance of the sale price, pays off any loans and, after payment of any estate agency and legal fees, will account to you for the net proceeds.
The buyer’s solicitor checks the legal title to ensure there is nothing which affects the value of the property, the buyer’s proposed use for it, or their ability to raise finance on it .. or to sell it in They will also forward the Transfer and any title deeds to the future. They will also conduct “searches and enquiries”. - made buyer’s conveyancer and send a written mortgage release form to with various authorities to make sure that there are no other your lender by which the mortgage is formally released from circumstances that could affect the property in the same way. the property. That concludes the sale conveyancing. It is important to be aware, while the above is
a “Local Search”; this is a questionnaire which is sent to the local authority in whose area your property is situated. The local authority usually has responsibility for road maintenance, planning and building control, road building or alteration and a register of the existence of any environmental conditions that might affect the property. a “Drainage and Water Search”; this is an enquiry sent to the water and sewage utility company for the locality; it specifies whether the property has a mains water supply and whether the foul drainage is connected to a public sewer;
Part Two - Offer to completion
If you have a “chain” of buyers and sellers, contracts can only be exchanged once everyone in the chain is ready..
a “Coal Mining Search”; an enquiry sent to the Coal Authority to establish whether the property is in an area affected by coal mining operations present or past; an “Environmental search”; an enquiry of a specialist information company to see whether the property is near to, or affected by any adverse environmental factors. Whilst these checks are going on, a buyer who is buying with a loan (“mortgage”) will be applying for his mortgage and once that has been approved, the buyer receives a mortgage offer which sets out the terms of the loan. The buyer’s solicitor then has a responsibility to the lender to provide a report confirming that the title to the property is in order and that there is nothing that would stop a lender making its loan. From this point the process moves to exchange and completion as detailed above.
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Part Two - Offer to completion
AN IMPORTANT NOTE ABOUT SOLICITORS Please contact your solicitors as soon as we have agreed the sale, so that they can start work straight away. This is the point at which you will benefit the most from having appointed your solicitors at the start of the selling process as much of this pre work will have already been completed, thus speeding up the process hugely. Your solicitors will require signed terms and conditions from you and they will send you standard forms to complete - the Seller’s Property Information Form and Fixtures Fittings and Contents Form. Please complete and return these as soon as you can, so that the transaction can get underway. You’ll also need to make available any supporting paperwork such as planning consents and building regulation completion certificates for any alterations, guarantees for work done, installations carried out, compliance paperwork for any new boiler or stove installations, and electrical work carried out. You should talk to them about the timetable and likely exchange and completion dates. Responding swiftly to requests from them for information will help keep the legal process on track. Be sure to follow them up on progress with the transaction as they are in control of the timing of events. Remember who’s paying their fees!
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Also, because we are able to speak to all parties, we are active in resolving any issues or questions that arise which can be better resolved by direct communication. Please bear in mind that the longer the chain of properties involved in your sale, the slower progress can be.
EXCHANGE & COMPLETION
Part Two - Offer to completion
Our role from this point on is to monitor progress.
Exchange of contracts will take place once the buyer’s solicitors have satisfied themselves on the legal aspects and a date has been agreed for completion. As the transaction progresses, check in with your solicitor so that you have time to make arrangements as the moving date gets closer.
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Part Two - Offer to completion
COUNT DOWN TO MOVING The end is in sight, but many people say that the countdown to the actual move can be one of the most stressful stages of the process. Based on our many years of supporting customers we suggest that following the points below may help make the process easier.
FOUR WEEKS BEFORE COMPLETION DATE Decide whether you need a professional moving firm or not. If you’re thinking of moving yourself, look into the costs involved – several journeys over long distances can quickly add up. It may well be worth hiring the professionals. We recommend choosing a removal company that is a member of BAR – the British Association of Removers. The BAR Head Office telephone number is: 01923 699 480 and their website is bar.co.uk. Choose a removal company that is reliable and will help make the transition as smooth as possible. • • • • • •
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Get a binding quote from the removal company, including details of the expected number of hours the job will take. Hire removal boxes or tea chests if they are not supplied by the removal company and stock up on boxes, string, labels etc. Take the opportunity to declutter: sort out your cupboards and sell unused items, or give them to a charity shop. Draw up a plan of where you want furniture to go in the new house. Book a hotel if you think you’ll need one during the move. Arrange for a friend or relative to help look after your children on moving day and book pets into kennels/catteries or arrange for friends/relatives to look after them during the move. Redirect your mail: a form can be obtained from your local post office.
Notify your children’s old and new schools of leaving/arrival dates. Register with or log into www.iammoving.com to start updating address change details, plus stop/start dates for services such as gas and electricity.
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Inland Revenue (HMRC)
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National Savings and Premium Bonds
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Pensions
ONE TO TWO WEEKS BEFORE MOVING
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Insurers – motor, contents, life, travel
Arrange the professional disconnection of gas cookers and any other appliances that you are taking with you.
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DVLA (for driving licence)
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TV Licence
Cancel deliveries of paper, milk, etc. Pay off any outstanding accounts.
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Phone/mobile/internet
Put all your documents and valuables in a single safe place.
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Local council (for old and new address)
Log into www.iammoving.com to notify the following organisations/providers with your moving details:
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Charities and clubs
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Magazine subscriptions
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Bank
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Credit/store card
Inform your stockbroker and/or companies in which you own shares or are a director.
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Other financial companies eg loans
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Utility providers, e.g. electricity, gas, water
Part Two - Offer to completion
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Inform your existing doctor, dentist, optician (and private medical care provider) and research new ones close to where you’re moving.
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Part Two - Offer to completion
THE FINAL COUNTDOWN THREE DAYS BEFORE MOVING •
Take down fitted items that are going with you – shelves, light fixtures, mirrors, etc.
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Confirm that the estate agent has the keys available to release to you, subject to solicitor’s confirmation.
TWO DAYS BEFORE MOVING
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Pack a bag with a change of clothes, essential toiletries and a ‘survival kit’ for the other end.
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Gather light bulbs, fuses, tools, toilet roll, battery lanterns or torches, cash and phone chargers
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Empty, defrost and dry out your fridge/freezer if you’re planning to put it in storage for any length of time. Leave the doors slightly ajar.
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Make sure there will be enough space for removal vans at both addresses.
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Prepare food and drink for moving day and don’t forget some plates, cups, cutlery, a sharp knife and the kettle!
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Fully charge your mobile phone.
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Get a good night’s sleep.
SALE AGREED
MOVING DAY! •
Give the removal team a full tour of the house.
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Strip the beds and keep the linen handy, so you can pull it out for the first night in the new house.
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Once the van is loaded, walk around with a member of the removal team to check you have got everything you want in the van.
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Lock all windows and doors before handing over the keys.
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Take the meter readings in your old and new homes.
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Unpack carefully in your new home, check for loss or damage and report it immediately.
Part Two - Offer to completion
ONE DAY BEFORE MOVING
SURVEY
CONVEYANCING
It remains only for us to
THANK YOU Thank you once again for choosing Fine & Country to sell your property, and for trusting us with the sale of your valuable asset. We hope that these guides have proven to be both informative and useful in guiding you through the process, and we wish you the best of luck with your future plans.
EXCHANGE & COMPLETION
MOVE 11
Offer to completion – Part Two
DISCLAIMER The information in this booklet is intended as a general background guide to the processes in home moving. It is not intended to be a substittute for appropriate professional advice. You should take specialist legal and financial advice when you are involved in a home move. Fine & Country North Cumbria do not accept any liability for any losses arising from reliance upon the information in this booklet.
Fine & Country North Cumbria 50 Warwick Road, Carlisle CA1 1DN | Tel: +44 (0)1228 583109 1 Little Dockray, Penrith CA11 7HL | Tel: +44 (0)1768 869007 cumbria@fineandcountry.com www.fineandcountry.com/uk/north-cumbria