The legal process.
Continuing on from our previous blog………..
Once an offer has been accepted it will be forwarded to the solicitor who will carry out the legal work, also referred to as conveyancing. Before your solicitor starts the process they will need to carry out ID checks to comply with current money laundering legislation. They will then request the titles from you or the lender. As this can take time then we recommend that you choose your solicitor and approach them as soon as you have decided who is to market the property.
The official offer will then be forwarded to the conveyancing solicitor with details of what has been agreed so they can respond to the purchasers offer formally. Both parties solicitors will then correspond back and forth and this correspondence is referred to as missives. This sorts out the details regarding any issues raised in the title ie access to the property may be over a neighbours land. The solicitor will need to make the buyer aware and have their agreement as to any conditions that may affect their use of the property. If there have been any improvements within the last 10 years the purchasers will also want to see any planning consents and warranted plans. If these are not available then title insurance may be suggested.
Once both parties have agreed all the details then missives are concluded and at this point neither party can retract from the deal without penalties. As a result missives are unlikely to be concluded until funding is in place for the purchase and as this is often not finalised until near the entry date it is no longer unusual for missives to be concluded very near the date of entry. Your solicitor will then request details of what is outstanding from your lender so that they can deduct this amount and their invoice together with any amounts due for the marketing, if appropriate, from the sale proceeds. Often solicitors will accept a cheque from the purchaser’s solicitor which will take time to clear and therefore we recommend that clients specifically request that sale proceeds are remitted to their bank by BACS which costs around £25. This will make sure you have the funds as quickly as possible. You should already have ensured that your solicitor has a set of keys that can be given to the purchasers on the agreed date or alternatively keys may be uplifted from the marketing agent but this can only be done once the sellers solicitor has confirmed that they may be released.
Monthly Property Clinic
If you would like any further information then please give Pauline a ring or drop into our clinic on the last Friday afternoon of each month.