Steps In The Legal Work of Buying Property, Property Guide, Furniture In Fashion
Buying property is a complex process not only when it comes to making the right decision, but also in terms of the legal work that needs to be taken care of. The legal process may be time-consuming and take up to several weeks, or, in some complicated cases, even longer. The entire legal process consists of 5 main steps:
· Enquiries made by conveyancer (in England and Wales) or solicitor (in Northern Ireland)
· Deposit payment arrangements
· Getting property insurance
· Exchange of contracts
· Completion
Before you and the seller of the property have the deal settled and before the final contract is signed, it is the task of the solicitor or conveyancer to make sure there are no legal disputes on the property, no issues regarding ownership rights or any other problems that might get in the way and hinder the process of transferring ownership rights or influence your decision to buy this property altogether. You need to be informed on further developments planned for this area, for example: if there`s going to be road construction in this particular area, other houses or shops being built, etc. To ensure there are no legal setbacks, the solicitor or conveyancer conducts two types of enquiries: local searches and enquiries to the seller.
The enquiries may take up to several weeks and while they are being made it is time to take care of the initial deposit. The initial deposit is usually paid by the buyer prior to final contract settlement and usually comprises 10% of the overall sum you will be paying the seller. If you are selling other property, you may use the deposit you get for that property, to pay for the initial deposit on your new property. The next step that needs to be taken is insuring your newly bought property. Your property insurance should start with the day you legally obtain property rights. It is possible to get counselling on this matter from you solicitor, conveyancer or mortgage lender.
After all the enquiries have been made with no legal problems detected, after you have received the surveyor report (and, if necessary, taken all the required action), after the payment of initial deposit has been arranged and the completion date has been set, it is time to exchange contracts with the seller of the property. By this time you should have also received the mortgage offer. Make sure the seller takes all the final meter readings (water, electricity and telephone) before the contract is signed. The contract exchange is conducted as follows: you put your signature to your copy of the contract and hand it over to the seller; he does the same and gives his copy to you. As soon as this is accomplished, you are legally bound by contract. At this stage you can still change your mind, but in this case you will lose your initial deposit.
It may usually take up to four weeks for the mortgage lender to release payment, and complete the purchase. By this time all the property documentation should be handed over to your solicitor or conveyancer. You should also decide on the time when the seller hand the keys over to you and leaves the property.
Related Articles
|
