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Property transactions explained
- 1. Buying or Selling a House or Flat in England or Wales! I know, I know, I know - it is a process that makes even the most even tempered person HOPPING MAD!!!
- 2. What are the lawyer¡¯s up to you ask? Have they died? Everything takes so long. Nobody seems to know what is happening. Nobody seems to be in control.
- 3. Why can¡¯t buying or selling a property be as simple as going to the Supermarket?
- 4. or buying a car?
- 5. ¡¡¡¡ or even a can of beans?
- 6. well ¡¡... The simple fact is that unlike cars or tins of beans a house or flat is fixed and immovable and subject to many different rights and obligations that may go back many years. When you buy a property you are buying a bit of Planet Earth.
- 7. I mean with a car ¡¡¡¡.. Having driven it out of the showroom you do not expect to find that lots of other people having a right to use it as well.
- 8. and with a tin of beans ¡¡¡¡. You do not expect to find that it has been built or altered in a way that is in breach of the law and can render you liable to fines or even prison.
- 9. but all of these situations are possible with land and property The house or flat could have tenants or other persons with a right of abode ¨C it could be subject to a mortgage ¨C it could have been built or altered without the correct planning permission or building regulation approval. Remember this is somewhere either you or someone else is going to live.
- 10. also it usually costs a lot of money ¡¡¡¡¡. Property purchase is usually the most expensive transaction you will ever be involved in. In many cases the money to buy is lent to you by a third party ¨C usually an institutional lender like a Bank or Building Society.
- 11. They might seem friendly but ¡¡.. Banks or Building Societies lend money to people to buy property and their loans are protected by a mortgage secured on the property. This means that if you do not keep up the payments they will sell the property over your head and you will be evicted ¨C however, if when they come to sell they do not get back all their money they will be very angry.
- 12. Not just with you but with your lawyer. If they cannot get the money from you they will seek to recover it from your lawyer if they find he has made even the smallest mistake in the conveyancing process. If the lawyer¡¯s professional indemnity policy is not sufficient the lawyer may become personally liable.
- 13. So your lawyer must be very careful! This is what takes up all the time. You see ¡¡
- 14. He must carefully study all the deeds and documents of title He must make sure that the person selling it to you has the right to do so, that the property is not subject to any mortgages or secured loans that no-one has told you about and you will have a good and marketable title if or when you come to sell.
- 15. He must make a search of the local council ¡ This is to ensure there are no problems with planning or listed building consents and building regulation controls. That there are no plans to build a road through the property or permit noisy or unpleasant industries to set up nearby.
- 16. He must make sure the property is not subject to any strange rights or obligations. No rights of way, chancel repair obligations, flooding issues or pollution problems.
- 17. Only when all that has been checked and verified is it possible to complete the sale and purchase. Hooray! You can move in!
- 18. So your lawyer is there to keep you out of the ¡¡ To do this well and hold your hand through what, even if it all goes smoothly, can still be a very testing time you need someone special.
- 20. Me! ? Morgan & Rowe ? Bespoke Legal Services ¨C I am here to help: ? Telephone: 0845 544 0736 ? Email: simon@morganandrowe.com I have been conveying properties in England and Wales for over 15 years and have acted quite literally for both Dukes and Dustmen. I offer a fixed fee service and for that fee you get me ¨C available (within reason!) at any time ¨C my experience and my help and advice to get you through what can be a very difficult process.