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You will need to instruct a solicitor to act on
your behalf for the sale of your existing property, and
the purchase of your new one.
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You don’t need to
instruct the same solicitor to act for both sale and
purchase, but many people choose to do so.
Legal &
Conveyancing fees can vary tremendously and will
largely depend on the type and value of home being
purchased |
In addition to the
standard procedures, your solicitor can check anything
you specifically raise and will present questions on
your behalf. The standard legal process is described
below.
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1. Letters to sellers solicitor
requesting draft contract. |
As soon as a client confirms instructions the solicitor
will write to the seller's solicitor requesting a draft
contract, replies to standard pre-contract enquiries, a
fixtures and fittings list and title documentation. When
dealing with a leasehold property your solicitor will
also require a copy of the lease and service charge and
buildings insurance information.
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2. Local authority search,
environmental search, drainage search. |
On receipt of search fees from the client your solicitor
will normally carry out on-line searches. Different
local authorities and other search providers work at
different speeds. Your solicitor should specify an
estimated return time and keep you updated for each
search. The
local authority search,
environmental search
and
drainage search
are
all normally completed within 2 weeks.
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3. Draft contract and
supporting papers received. |
Once the draft contract and other documents arrive the
solicitor will go through them to find out if everything
is in order. It is unusual for everything to arrive
simultaneously and it may take the seller's solicitor a
little while to provide your solicitor with everything.
Depending on the information received there may be other
issues and requests for the sellers solicitor to
address. Supporting documentation may include guarantees
for work or appliances, building regulation certificates
or indemnity insurance policies.
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4. Additional enquiries
made. |
Often the information we receive may not be detailed
enough or may prompt further questions. If further
information is needed the solicitor should request it as
quickly as possible This stage can be very interactive
and you should raise any concerns or questions relating
to the property. Also be aware that it is at this stage
where legal costs can spiral depending on the issues
associated with the property and the queries you have.
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5. Local search returned. |
The results of the local search may prompt for the need
for additional enquiries e.g. the need for copy planning
permissions for future developments, roads etc.
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6. Search information and
outstanding enquiries received. |
Once this information is satisfactory your solicitor
should send an approved contract to the seller's
solicitor.
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7. Mortgage offer received
from lender. |
As well as acting for the buyer your solicitor will
normally act for the Lender if the buyer is taking a
mortgage. Your solicitor needs to be sure that the
property is financially sound with regard to the
mortgage and may highlight any major problems with the
property to the lender. Before exchange of contracts
your solicitor must have correct instructions from the
Lender and confirmation that funds will be available for
completion.
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8. Client asked to sign
contract. |
Your solicitor will need to report to you on all of the
information received and to explain the terms of the
mortgage offer. If you’re happy to proceed your
solicitor will then ask the you to sign the contract.
Your solicitor now holds the signed contract ready for
exchange.
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9. Deposit received, or to
be obtained from sale. |
A deposit of of between 5% and 10% of the purchase price
must be paid by the buyer to the seller's solicitors on
exchange of contracts. If the buyer is selling a
property themselves the deposit paid to them by their
buyers can sometimes be used (and so on down the chain).
If its not possible to use the buyers deposit or if you
have no house to sell , your solicitor will request a
building society cheque or bankers draft.
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10. Sellers solicitor informed
ready to exchange. |
When your solicitor has a signed contract, mortgage
instructions and all search reports, they will inform
the seller's solicitor that you are ready to exchange. A
completion date will be agreed once the seller and all
other parties in the chain are ready to exchange.
Once contracts have been exchanged the two parties
involved are legally committed to buy/sell the property
in question. Failure to do so at this stage will result
in the party at fault being in breach of contract.
Completion specifies the moving date and the end of the
purchase transaction. The completion date is the date on
which the seller must vacate the property, and the date
the buyer must pay for the property. Normally this
occurs between 12 and 1 p.m. on the day of completion,
and penalties may arise under the contract if completion
does not take place by 2 p.m.
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