A Simple Guide to Conveyancing

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A Simple Guide to Conveyancing

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A Simple Guide to Conveyancing

Welcome Buying your first home is very exciting and there is nothing like the feeling of getting the keys and opening your own front door! Our aim at First Time Buyer magazine is to make the journey to homeownership a simple one, which is very easy to understand and navigate.

One of the main things that often seems rather daunting and confusing is the conveyancing process.

Editor, Fir st

We hope this little book – A Simple Guide to Conveyancing will help you understand how it all works, answer your questions and understand what is involved in the legal side of buying your first home.

We are delighted that Lawcomm Solicitors, with its expert team, has sponsored this book.

We wish you every success when buying your first dream home.

Happy house hunting!

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Lynda Clark Time Buye r

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A Simple Guide to Conveyancing

Our sponsor Welcome to our guide prepared for readers of First Time Buyer magazine to help you through the process of buying your first home.

Buying a house can be a daunting process especially when it comes to the legal aspects. Buying a new build property has its own set of challenges, including different Government schemes, an array of financing options and often very tight deadlines.

Bill Dhariw al Managing Director, Lawcomm Solicitors

Lawcomm Solicitors have a dedicated, specialist team that deals exclusively with new build transactions with substantial experience helping first time buyers using the Help to Buy scheme, and existing home owners buying new build property.

Our years of experience in helping thousands of home buyers means we know exactly what needs to be done to meet the developer’s exchange deadlines and can anticipate problems that may cause delays.

If necessary, we can work closely with your mortgage broker and any estate agents to ensure a seamless process, with all legal work included in our competitive fixed fee.

A property purchase is a huge commitment and can be a time of stress and worry. We aim to cut through some of the legal jargon and break down the process for you into simple steps.

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A Simple Guide to Conveyancing

What type of property are you looking for?

Research the market carefully to see what type of property you can buy on your budget and if you are looking at both new and resale homes then get legal fee quotations for both types of property.

The first step on your property journey will be deciding on the type of property you wish to purchase. For many buyers this may depend on the availability of new or resale homes in your preferred location or eligibility criteria if you are using a shared ownership or shared equity scheme.

Fees will vary not only depending on the price of your home but also on the different work involved for each property type.

Get a range of estimates for all the options you are looking at so you can get a full picture of the likely legal costs to budget for.

If you are buying a resale home also look to budget for having a Homebuyer Report or structural survey carried out by an RICS registered surveyor. Your mortgage lender will do a basic valuation but a detailed survey will highlight issues such as damp, wiring issues and structural faults that could prove costly or dangerous in the future.

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A Simple Guide to Conveyancing

Affordable housing schemes Take time to research the schemes available and all the options before deciding on what scheme and what property is right for you

If you do not have the deposit or mortgage funding to buy a property on the open market there are a number of affordable housing schemes available that are specifically designed to get you on to the property ladder.

In the next section we discuss in more detail the two most common schemes, but a range of options are available.

sale under one of these types of schemes on an affordable basis.

A further percentage must usually also be offered for affordable rent.

Planning Policy now dictates, particularly with new build sites, that a certain percentage of the homes built must be offered for

There is a wealth of information available online about what types of scheme operate in your area and your local authority or local housing associations will also be able to help. Specialist publications such as First Time Buyer magazine can give you an idea of what is available and what schemes are up and coming and specialist financial advisers can look at your financial circumstances and advise on what scheme would best suit you.

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A Simple Guide to Conveyancing

Help to Buy scheme/ shared equity Help to Buy is the equity loan help for home buyers from Homes England which makes new build homes available not only to first time buyers but to all new build home buyers who might otherwise be unable to raise the necessary deposit but could afford a mortgage.

A FEW HELPFUL FACTS TO CONSIDER • You must provide a 5% cash deposit.

• You must take out a first charge mortgage with a qualifying lender.

• The maximum purchase price is £600,000.

• The property purchased must be your only residence.

• Help to Buy is not available to assist buy-to-let investors.

• You cannot rent out your existing home and buy a second home through Help to Buy.

Up to a maximum of 20% in England and up to 40% in London, of the purchase price can be lent to buyers through this Government equity loan scheme.

The scheme is still in place and currently set to run until 2021.

The Help to Buy loan will be paid directly to the developer on completion and Homes England will take a secured charge – a second mortgage – against your new home.

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A Simple Guide to Conveyancing

Shared ownership These schemes are offered by registered housing associations and local authorities.

You will buy a “share” of the property and pay rent on the remaining share.

Buy

You can buy further shares in the property at the market value of those shares at the time of purchase. Buying further shares is referred to as “staircasing”.

Rent

“standard” obligations on you as owner. For example, you will still have to:

As you buy further shares, the rent will be reduced proportionately to reflect the fact that the landlord’s interest in the property has reduced.

• c ontribute towards the costs incurred by the landlord in providing services • need to seek the landlord’s consent before making certain alterations • comply with regulations relating to the management of the estate of which the property forms part.

In most cases you will have the normal responsibilities of a full owner. This means, for example, that you as the leaseholder will be obliged to pay 100% of the outgoings relating to the property and keep the property in good and substantial repair and condition.

Should you wish to sell or remortgage the property you will need the consent of your housing association to do so.

The lease also contains other 11

A Simple Guide to Conveyancing

The difference between shared ownership and shared equity schemes ownership property (normally owned by a housing association), and you can only achieve 100% ownership by “staircasing” up to full ownership.

With shared equity you purchase all of a property and legally own all of the property. However, your deposit is reduced because you buy with a large equity loan that reduces the amount you have to borrow but is attached to your property and will need to be repaid at a later date.

You will pay rent on the part of your home you don’t own yet and will also be liable for maintenance and insurance charges. With some leasehold apartments sold under the shared ownership scheme you may also have to pay ground rent on top of the rent on the share you don’t own.

With shared equity there is generally a requirement to repay the equity loan within 25 years, or earlier if you sell your home. Shared equity is generally provided by house builders and shared ownership by housing associations, but there are some housing associations with allocations for the Help to Buy: Equity Loan scheme.

In contrast, shared ownership schemes are usually undertaken whereby you only own a specific share as a lease on a shared 12

A Simple Guide to Conveyancing

What is staircasing?

You should let the housing association know if you have carried out any improvements to your home as these will normally be discounted from any valuation to prevent you from paying for any improvements twice.

In a shared ownership lease, you will find reference to the provisions for “staircasing�. This is the procedure that allows you to purchase further shares in your home.

The price you pay for any further percentage share will be worked out based on a valuation carried out by the housing association, for which you will normally be expected to pay an upfront fee. This is not refundable if you decide you do not wish to or cannot afford to staircase.

You will need to contact your mortgage lender to confirm whether it will lend you the additional money required to buy a further share in your property. The additional amount it will lend you will often determine the amount of further share you can purchase.

You should also note that the housing association is entitled to refuse your request to staircase if your rent is in arrears or if it is currently taking action against you for a breach of your lease conditions.

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A Simple Guide to Conveyancing

Prepare for the homebuying process Once you have decided on the type of property you would like to purchase, it’s time to get your paperwork in order.

Sit down and work out both your purchase budget and current living expenses to make sure your goals are achievable. Gather your statements and wage slips together as you will have to prove your income and routine expenditure as part of the purchase process.

Get quotes for your solicitor’s fees and any insurance you will need and make sure you include these costs in your budgeting. This is a great time to review whether you need to take out life or other income protection insurance and to make sure you have a Will that sets out what will happen to your home if the worst should happen.

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A Simple Guide to Conveyancing

What identity documents will you need As part of the process, your solicitor, broker and developer or housing association will ask you to prove who you are. This applies to all buyers and anyone who is putting money towards your purchase too.

Take copies of your ID as you may have to send these to your mortgage broker, solicitor and housing association. You may need to produce the hard copies,

although most law firms can now run an electronic check based on copies. Try to ensure that you have both to hand and that you check each separate party’s requirements carefully.

You will need current photographic ID such as an in-date passport or photocard driving licence and that you have original paper copies of bank statements or utility bills that are less than three months old.

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A Simple Guide to Conveyancing

What is "source of funds" As part of UK Money Laundering Regulations you will have to provide evidence of how you came to have the funds you are putting towards your purchase.

under three months old • Evidence of the source of any lump sum deposits into your account such as money from a gift or inheritance

Your solicitor will advise on what proofs you will need as this will differ in every case, but as a general rule you will need as a starting point: • Your last three months’ payslips • Hard copy bank statements for your current and or savings accounts which should be

If your finances are more complicated or if you have obtained money from abroad then further proofs are likely to be required. Your mortgage broker and solicitor will be able to guide you on what proofs are required in your specific circumstances.

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A Simple Guide to Conveyancing

What if I am getting a gift? driving licence and that you have original paper copies of bank statements or utility bills that are less than three months old showing the gift money accumulating in their account and being transferred to you.

If you are getting a gift from a family member or friend to assist with your purchase then make sure you have documentary evidence to show where these funds are coming from.

The person giving you the gift will have to sign a declaration to confirm that they do not expect that money back and they will not have a legal interest in your home. Your mortgage lender will require this to confirm that if it had to repossess your property then this money will not have to be repaid.

Let your broker and solicitor know about the gifted money as soon as you can in the legal process and they will be able to guide you on what forms you will need the person giving you the gift to complete.

Make sure they are willing to co-operate with the process and to provide all proofs requested.

Also make sure anyone gifting you money has current photographic ID such as an in-date passport or photocard 17

A Simple Guide to Conveyancing

Instructing a solicitor and send a report to you, including the contract for you to sign and return.

• At this stage you have the opportunity to review the paperwork and raise any questions you have. Remember, we will not have visited the site or been involved in your initial conversations during the reservation process so it is important you check everything to confirm that it matches what you agreed.

Once you’ve reserved a property to buy, the process begins with the following steps: • The developer or housing association sends us a Reservation Form for the property.

• We send you our instruction pack – this contains a confirmation of our fee estimate and forms to collect all the information we need from you to get started.

• You complete and sign the pack and pay a deposit to cover the cost of searches and initial disbursements.

• We will notify the sales office/ agent that you have instructed us and request the legal paperwork for your property from the seller’s solicitor.

• We electronically check your identity.

• Once we receive the legal paperwork we will carry out property searches.

• We examine the paperwork from the developer’s solicitor 18

A Simple Guide to Conveyancing

Choosing your mortgage product You should consider a broad range of options and have an overview of all surrounding costs, such as mortgage arrangement fees, legal and insurance costs and rent and service charge costs (if you are buying an apartment) so you can fully review the available options and decide what is really affordable.

Take advice from a reputable mortgage broker or financial adviser and look at the range of product options. Don’t hesitate even at this stage to take their advice on all of the different options open to you.

If you are buying a property under a shared ownership or Help to Buy scheme then you are advised to seek out a broker who specialises in this type of scheme as they will have knowledge of the full range of products that are available.

Your solicitor will advise you on the legal terms of your mortgage but we do not offer any advice on the suitability of a particular mortgage product for you. Your broker or financial adviser will be able to guide you on the product that’s the right fit for you.

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A Simple Guide to Conveyancing

Extra costs to consider leasehold homes there are usually notice fees to pay to confirm your details to the landlord and/ or management company and administrative fees payable for items required to be sent to or obtained from them such as Deeds of Covenant or Land Registry certificates.

In the case of nearly every new build property, a fee is charged by the developer’s solicitors for preparing the transfer deed (for a house) or lease (for a flat).

Where properties are sold as part of a development it is essential for the obligations contained in these documents to be identical.

To ensure this happens, the developer’s solicitors will prepare them. Normally it is the buyer that must pay the associated legal fee. The amount charged is approximately £180-£240 (including VAT) but varies from one developer to another.

Any additional fees being charged by the landlord and/or management company should be advised to you as soon as your solicitors have checked the title paperwork to your property as these vary from property to property and between different landlords and property managers.

With both resale and new build

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A Simple Guide to Conveyancing

The legal process checklist Instruct Solicitors

Your solicitors will send you an initial pack which you will need to fill out and return with your identification and usually an initial payment on account for searches

Memorandum of Sale

The estate agent or housing association will send a Memorandum of Sale with details of the property, any terms or deadlines that have been agreed and their solicitors’ contact details.

Contract Pack

The seller’s solicitors will send your solicitors a Contract Pack which will include all the documents necessary to raise enquiries.

Searches

Included in the pack will be a plan of the property so your solicitors can order your searches.

Enquiries

These are legal questions your solicitors will raise about the property. You can also then let them know if you have any specific questions to raise.

Mortgage Offer

Your lender will send you a copy of your offer and a separate copy to your solicitors which will set out your mortgage terms and any matters they want your solicitors to confirm 21

A Simple Guide to Conveyancing

The legal process checklist Searches Received

Once all your searches are in, your solicitors will check these and report to you on the results

Title Report

When all the above has been done, your solicitors then send you an overall report on your property. This will include anything we feel you will need to know about the property before proceeding to exchange.

Final File Review

If you are happy with the report, all your questions have been answered, all signed documents are in and your deposit has been received, your solicitors will do a final file review to make sure we are ready to exchange.

Exchange

When all the above steps are satisfied you can formally exchange.

Completion

This is the final stage and the day that you will receive the keys and move into your new home.

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A Simple Guide to Conveyancing

Searches person cannot be “found” by the relevant authority after a “reasonable enquiry”, the owner or occupier of the land is liable.

Your Environmental Search would identify any potential land contamination together with other risks such as unstable ground conditions or flood risk.

The searches may reveal details about the area surrounding the site such as mobile phone masts, flood risk or rail developments, such as HS2, that may require specialist investigation or further searches to make sure you are aware of any matters that may impact the value of your home.

The sellers are under no obligation to disclose the information that would usually be contained in your searches.

It is up to your solicitors to carry out all relevant searches that are suitable for the type of property and the location in which you are buying and to properly investigate the results for you.

Your environmental search is also very important.

Under the Environmental Protection Act the person who caused, or knowingly permitted, the existence of the contamination is primarily liable but if that 23

A Simple Guide to Conveyancing

Enquiries Land Registry title to a development site is often a complex affair. The land under development may well be a mix of different parcels of land, each of which have different rights and obligations attached. Many of these will be historic or in case of land that has changed hands many times simply unknown.

Where matters affecting the title have not been fully revealed to the Land Registry or where there are older restrictions that may restrict development of the site, the developer may have put in place indemnity insurance

that the sellers have not done anything to the property that is not allowed under restrictions in the legal title or that required consent or certificates which they do not have.

Similarly, with a existing home the title needs to be thoroughly checked. The title will often also be subject to a number of prior transfers and deeds that all need reading through carefully.

In addition we need to check

We need to make sure all of the title information is checked, all certificates and documents have been provided and that any insurances offered are fully enforceable.

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A Simple Guide to Conveyancing

Plans We will carry out our checks with the Land Registry to make sure, as far as we can, that all of the land on the site belongs to the developer and the boundaries are correct. Please note, however, that we do not inspect the site.

When your conveyancer sends you your plans you need to check these very carefully as you are our eyes on the ground to tell us if something doesn’t look right.

You would think it would be a set conclusion that all the land included in the development belongs to the seller and that everything on the plans matches the layout of the site on the ground, but this is not always the case.

Land Registry boundaries are usually based on the latest versions of the Ordnance Survey and the older title deeds, not a physical inspection.

Development and plot plans are usually drawn up at the beginning of the development of a site before building has even commenced.

This means there can be variances between what the plans intend and the actual layout of the boundaries and roads and pathways on the site itself.

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A Simple Guide to Conveyancing

Service and estate charge arrangements satisfactory answer to who will be responsible, how will maintenance costs be dealt with and who will organise collecting the money for the work that needs doing. These arrangements all need to be in order to make sure you know who to contact if repairs need doing and how much you may be paying in the future towards the cost of the estate as a whole.

There will be areas on the site that are not being sold to individual buyers. This could be the communal areas in a block of flats or the roads and open areas on an estate of houses. There will also often be shared facilities and utility supply wires and pipes that someone needs to take care of in the future once the site is finished and the developer has moved on.

We need to make sure we have a

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A Simple Guide to Conveyancing

Management companies If your property is subject to service or maintenance charges then the charge will be estimated at the beginning of each financial year and you will be asked to make your contributions in advance based on that estimate. At the end of that accounting period a final account will be prepared. We should note that if there is any shortfall between the estimated maintenance charges and the actual expenditure, then the management company reserves the right to collect any shortfall from the property owners.

This is often referred to as a “balancing charge�.

of Transfer and Charge on the managing agents not the freeholders. This would usually attract an administration charge.

For us to be able to register you as the new owner of the property, a Certificate must often be issued by the Landlord or their Agent confirming that the terms of the Lease have been complied with.

An administrative fee is usually charged for issuing the required Certificate of Compliance.

You will often be required to pay some or all the year’s service charge in advance depending on whether this is collected on a monthly or annual basis.

Please also note that at completion we will serve Notices 27

A Simple Guide to Conveyancing

Common lease restrictions • Obligations not to obstruct or damage shared corridors and internal spaces • Restrictions on noise at certain times of day

Present property law in England and Wales effectively requires that flats be leasehold, although some leasehold flats are now sold with a share of the freehold, through participation in a residents’ management company.

You need to ensure you thoroughly read all the lease terms and, especially if you are buying a property with an older lease that may be in less modern language, that your solicitors fully explain all these to you in terms that you can fully understand.

All leases contain restrictions or a list of do’s and don’ts which are designed to protect the overall value of the property and to ensure in the case of a communal building that all the residents can use the facilities available and live together in relative harmony.

Your solicitors should set out all of these for you in detail as all leases are unique, but some common restrictions you may encounter include: • Restrictions on you making structural changes to the building • Restrictions on keeping pets • Obligations to keep your property in good repair 28

A Simple Guide to Conveyancing

Heat supply agreements If you are buying an apartment in a shared building then you may be asked to enter into a heat supply agreement.

There is a Heat Interface Unit (HIU) within each home – this looks a bit like a boiler and will usually be located in the utility cupboard.

Your experience of the heating and hot water you receive should be no different than if you had a combi boiler in your home.

The Heat Supply Company named in the Agreement is responsible for maintenance of the district heat network, up to and including the Heat Interface Unit (HIU) in each home.

New build developments have to comply with policies and standards set by the Government.

The Government’s current energy policy requires the introduction of heat networks in cities wherever feasible. This is in order to generate heat and power more efficiently, improve cities’ energy security and self-sufficiency, and reduce carbon dioxide emissions.

You will be responsible for the maintenance of the internal heating circuit – this includes the radiators or underfloor heating (as applicable), heating controls (thermostats, programmers, timers), the hot water taps and showers, and all the pipework that runs between the HIU and the radiators/taps/showers.

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A Simple Guide to Conveyancing

Stamp Duty Land Tax Stamp Duty Land Tax (or Land and Buildings Transaction Tax in Scotland and Land Transaction tax in Wales) is a lump sum tax that anyone buying a property or land costing more than a set amount has to pay.

The rate you’ll pay the tax at varies based on the price of the property and the type. The Inland Revenue has produced a calculator to work out your potential liability here. www.tax.service.gov.uk/calculatestamp-duty-land-tax/#/intro

out for a basic purpose using the Government calculator and your legal adviser will be able to confirm if there are any reliefs or options to defer available to you.

If you are buying a rental property or second home you will find yourself liable to pay Stamp Duty at a higher rate than if you own only one property and again you can estimate this using the Government calculator or ask your solicitors to provide you with a figure as part of the quotation process.

If you are buying a shared ownership property or are a first time buyer then you may be eligible for relief from or deferment of some of the tax you have to pay.

The Stamp Duty can be worked 30

A Simple Guide to Conveyancing

First Time Buyer Relief A first time buyer is someone who has never owned a freehold or leasehold interest in a dwelling before and who is purchasing their only or main residence.

Residential property anywhere in the world is counted when determining whether someone is a first time buyer. Where you are purchasing jointly with another person/s all parties would need to be first time buyers to qualify for the relief.

If you qualify as a first time buyer then you may be eligible for tax relief on your purchase.

• First time buyers paying £300,000 or less for a residential property will pay no SDLT. • First time buyers paying between £300,000 and £500,000 will pay SDLT at 5% on the amount of the purchase price more than £300,000.

• First time buyers purchasing property for more than £500,000 will not be entitled to any relief and will pay SDLT at the normal rates.

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Shared ownership Stamp Duty When you purchase a new shared ownership lease, the tax rules work differently to the rules that would apply if you were buying a freehold property or one with an existing lease. You have a choice about when and how you pay your tax and you need to consider this carefully depending on your individual circumstances.

Premium) but also on the amount of rent you are paying. As the level of rent you are paying for a shared ownership property is usually a lot higher, this can have a significant impact on the amount of tax you would pay.

Under the Stamp Duty Land Tax (SDLT) rules, you can choose to pay tax when you purchase the property at the rate it would be due if you were buying 100% of the property at full market value.

If the amount you are paying is under the threshold for SDLT, you can choose to defer paying tax until you buy further percentages of the property up to a 80% share.

Or you can choose to pay on the price you are paying (The 32

A Simple Guide to Conveyancing

Indemnity Insurance Policies For existing homes these policies can again cover a range of areas in respect of the property’s title or be used to cover matters for which consents or permissions were required (such as extension works for example) that have not been obtained.

Sometimes there will be potential issues with the title to the land which require specific insurance policies. In the case of a large site these are often dealt with by blanket policies that are put in place for the site as a whole and provide financial compensation in the event that the matter that has been insured against occurs.

Your solicitors should explain to you any insurance policies that are in place for the property which you are buying and whether the benefit of these policies will pass to you.

Common reasons for such policies include: • Missing or incomplete title documents that may give a third party rights over the land.

• Historic restrictions that would prevent the development of the land for housing.

• Mining rights being reserved under the land to extract particular minerals.

Each development site is unique and has its own history or previous use and ownership and there are a wide range of different policies available.

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A Simple Guide to Conveyancing

Building control & warranty to make sure it is the right type of warranty for your home and that all the conditions have been met to enable you to make a claim in the unfortunate event that issues arise in the future.

Your new home will come with a new home warranty. National House-Building Council (NHBC for short) are the most common, but there are a number of different schemes. We need to check the individual warranty provider’s terms and conditions

If you are buying under a shared ownership scheme, you are buying a part share in the property and so the guarantee will initially be entered into between the housing association and the warranty provider. They will retain all documentation for this, although you will have the benefit of it.

If you have any issues with the property that you believe may be covered under the warranty, then you should contact the housing association as a point of first contact and it will investigate the issues and, if needs be, make a claim under the warranty for you.

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A Simple Guide to Conveyancing

Handover This is a term that can cause confusion. Especially with shared ownership properties that are not being built by the housing associations themselves.

Be careful not to confuse your property’s handover date with the completion date if you are making arrangements, for example to hand in notice on your rented accommodation so you don’t get caught out if handover is delayed.

This is usually used to indicate when the property is finished and ready to occupy but if you are buying from a housing association then the property will first need to be inspected and checked over by the association before it accepts the property from the developer. In these cases you may find that the day that the property is to be handed over to the housing association is not the date you will complete your purchase.

This is because there are matters to be finished off by the developer or issues the housing association wants the developer to resolve before they take legal responsibility for the property.

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Snagging If there are matters of concern then the developer or housing association will usually agree to finish these off or put things right.

Make sure you make a full list of any issues you want dealt with and discuss this with them as soon as possible.

When you buy a new home you would hope to be more than happy with the finished product.

There may be, however, certain items that are not quite right or that need finishing off that you would like the developer to come back and put right for you. These things are known as “snagging items�.

Sometimes these are things that you may already know will not be finished (such as planting or landscaping works) and these sorts of outstanding items are covered under the term snagging too.

You should ensure that when you accept the keys to your new home the developer or housing association do an inspection with you. A checklist is a useful tool to take with you if they do not provide one. You need to check that any included appliances are working as well during this inspection.

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A Simple Guide to Conveyancing

Exchange of Contracts Once contracts have been agreed and signed by both parties, they are securely exchanged on a specific date (this is usually within 28 days of your initial reservation). At this point you and the developer are committed to the transaction.

This can either be a fixed date or “on notice”.

Completion “on notice”: this is when you must wait until the property is ready. Once ready, we will be given a notice period by the developer in which we send you our completion statement and request funds.

Fixed Completion date: this will happen if the property is ready to move in to. If this is the case, we will send you a completion statement (details of all costs involved including outstanding fees). If you have a mortgage, we will request the funds from your lender.

If you are in rented accommodation and contracts are exchanged “on notice” do not hand in the notice on your rented home until the formal notice period has been served and a completion date has been fixed with the developer or with the housing association.

At this stage you will also agree the timescale for completion.

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A Simple Guide to Conveyancing

Completion Checklist Ensure you have the total balance of funds available to cover the balance of your purchase price, and legal fees ready in your account.

If you are buying a freehold property, it is important that your buildings insurance is placed on risk immediately following exchange. If you are buying a shared ownership home this will not be necessary.

If you decide to use a removal company, it is essential that you secure your removal date and confirm the arrival time and final arrangements with your removal company including directions or postcode of your new property and any access issues.

Change your address details. You may consider having your post redirected for an initial period.

Make a list of contact details for the day so you have these easily to hand, ie solicitors, estate agent, developer or housing association.

Ensure your mobile is fully charged in readiness for the day of completion so you are contactable.

On the morning of completion, make a note of all meter readings at your new property once you arrive. Notify the relevant utility companies of your arrival and the date – at that date you become liable to cover the bill.

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Completion day If you are buying a resale home you will usually collect keys directly from the seller or the sale agent. You should carry out an inspection of the property and appliances to check that everything is as described and inform your solicitor promptly if there are any issues.

Once your new home is ready, an official handover of the property to you is arranged.

Keys, building log books and owner’s manuals are issued at this point and a defect reporting procedure agreed upon. Make sure that you are given copies of all the guarantees relating to the property, including all white goods (such as cookers, fridges and boilers), windows and flat roofs (if they have installer’s guarantees) and damp proofing and timber.

Again, as with a new build property, check you have been given all the keys and warranty and guarantee information and manuals you were expecting.

Make sure you read all the meters for the property and make a note of the current readings in case the seller has forgotten to do so.

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Your rights if you were to discover problems with your new build home THE CODE: WHAT TO EXPECT:

The Consumer Code for Home Builders is an industry-led code of conduct for builders. The aim of the Code is to ensure that all new build home buyers are treated fairly.

• to be treated fairly • to know what levels of service you can expect • to be given reliable information about your purchase and your rights • to know how to access resolution arrangements to deal with any complaints you may have

The Consumer Code applies to home buyers who, on or after 1 April 2010, bought a new or newly converted home built by a home builder registered and insured by one of the following home warranty bodies: • National House Building Council • Premier Guarantee • LABC Warranty

the initial purchaser of the home but also to any subsequent buyers of that home within the first two years of the initial purchase.

The Code’s pre-sale and handover requirements apply to homebuyers who are the first purchasers of that home.

If you fall into dispute with your developer or housing association and your property has one of these warranties then you may be eligible for assistance under the Code.

The Code’s after-sales service applies not only to anyone who was 40

A Simple Guide to Conveyancing

Glossary of terms Caveat Emptor: means “let the buyer beware”. It describes the fact that there is no positive obligation of disclosure by a seller to the buyer during the sale and purchase process about the property and it is for the buyer to ask the questions.

Chain: is the word to describe the buyers and sellers who are dependent upon one another in order for their sale and purchase to go through.

Charge: is a debt secured against your property. In most cases this will be a mortgage.

Chattels: is another name for the property furniture and contents.

Completion date: is the date when payment is made and the legal transfer of the property takes place. This is also the day you would usually collect your keys and you can move in.

Conveyancing: is the legal process of buying your home.

Covenants: are obligations and restrictions that are attached to the property that may limit your use and enjoyment of the property.

Deeds or Title Deeds: most land in England and Wales is registered at HM Land Registry and therefore legal ownership is evidenced by the electronic register.

Deposit: is the money paid by the seller’s solicitor to the buyer’s solicitor at exchange of contracts. It is typically

10% of the purchase price but can be a lesser amount if pre-agreed. It is also the amount that would be forfeited by the buyer to the seller should the buyer fail to complete.

Disbursements: are costs incurred by us during the sale or purchase process such as Land Registry fees which we pay to third parties as part of our legal work Contract Pack: this is the pack produced at the outset by the seller’s solicitors which includes a contract, a copy of the title to the property and the property information forms or site documents such as planning documentation.

Drainage search: is a check your solicitor will carry out to ensure your property is connected to mains water and sewers.

Environmental Search: it seeks to identify whether the land could be contaminated land and therefore liable for costs to clean up based on previous land use.

Exchange of contracts: is when your solicitors make the transaction legally binding and fix the completion date.

Fixtures and Fittings: refers to items that belong to the seller and are at the property. Fixtures typically are not easily removable items whereas fittings are moveable.

Freehold: means all the property

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within that area from the centre of the earth to the skies. Ownership is not limited in time unlike the other form of property “leasehold”.

Ground rent: is a yearly fee relating to leasehold properties. This is payable by the leaseholder to the freeholder.

Indemnity insurance policy: protects the buyer against any problems that may be experienced due to a defect in the legal title. It is available where the risk is low. Your solicitors can advise you whether this can/should be used in a particular circumstance.

HM Land Registry: is a Government organisation that deals with ownership of property and land in England and Wales and holds an electronic register of all land ownership.

Lease: The legal document for a leasehold property that sets out how long you will own the property and what conditions and rents your ownership will be subject to. These are complex documents and you will require specialist advice on this.

Leasehold: is the other form of property tenure and relates to the right to occupy an area of freehold land for a specified term which is then reducing and paying a nominal annual rent. For this reason the length of the lease is important for your solicitor to ascertain as it can have a significant effect upon the value of your property as it gets shorter.

Local authority searches: these

searches will reveal any council plans that may affect the property you wish to purchase.

Property Information Form: is a form a seller will complete. It lists questions regarding boundaries, services, guarantees and restrictions. If you are buying a newly built property this will usually be replaced with a property specification which will be provided on site Reservation fee: is typically found in the new homes market and is a sum paid before exchange of contracts to reserve the property for a period of time to give you exclusivity to buy. You should expect this to come off the purchase price.

Service charges: are payable to your landlord in respect of a leasehold property. The charge covers any repairs, maintenance or improvements made to the building or shared facilities or common spaces.

Stamp Duty Land Tax: also known as SDLT, is a tax payable to HMRC and is based on the purchase price of the property. Your solicitor will be able to advise the rates applicable to you.

Transfer deed: is legal document that transfers the ownership of the property from the seller to the buyer. If you buy with a partner this document also defines your shares in the property.

Transferor: means the seller.

Transferee: means the buyer.

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