Monthly Archives: June 2016

Conveyancing pre contract Inquiries

Conveyancing Pre contract Enquiries (UK)

When buying or selling the property, there is a list of points and other conveyancing pre contract enquiries that your solicitor will discuss with the other party.  A good amount of information resides in draft contracts which exchange between the solicitors. This includes terms of the transfer and include documents like Energy Performance Certificates and Property Information forms. However, it is important to have a series of enquiries lined up, unique to the property, so that you can make an informed decision before making a deal.

Analyze the local Market

It is always important first to be aware of the general market trends in the area.  Find out how much the properties nearby have been selling for, and the percentage of the original asking price that they sold at.  Also, check the asking prices of the local properties for sale, keeping in mind that if they have not sold for a few months, the asking price may be set too high.  This will help you come up with a general idea of how much to ask or offer, although things like interior renovations can cause fluctuations in properties that may appear similar. This is important for conveyancing pre contract enquiries.

When it comes time to make specific enquiries about a property you wish to buy, try to talk to the owners directly, rather than their solicitor. You will be able to get more personal information from their experiences, and they will also likely give you more honest answers, as they do not have the training that their solicitor does in speaking about a property. Try to get into their heads and understand why they are selling. You may ask them how long they lived there, and how long the previous owners did as well. Ask about pests, structural problems such as leaks and insulation, and whether the house is affected by any weather phenomena – is the house on a floodplain for example?

Direct contact with the Seller

You can even strike up a conversation with the neighbours to get some unbiased opinions on the area and possibly even about the property you are looking to buy.  Also, be sure to get receipts for anything with an existing warranty, or anything that has changed recently.

In some cases, it may be a good idea to have a professional survey done to the house and property.  This is sometimes necessary if the building is old or unusual, as the surveyors can uncover problems that the first owners potentially didn’t know about, or tried to cover up. At least you will not be bothered by other enquiries later. In some areas, properties are affected by other things such as historical sites and common land, mining areas, pipelines, noise abatement zones, and various other possibilities.  You can even get fined if your property is in a conservation area, and therefore require special approval before making any adjustments or changes at all.  Your solicitor can help you find this information, which could end up being a deal breaker on a property.

The most important thing is to imagine yourself using the property as you would once you’ve purchased it.  What direction does it face, will there be any sunlight? Do the taps work? Is the garage big enough? Is the yard too big? Be realistic and honestly ask yourself if you are satisfied before moving forwards with a deal.

Conveyancing Hidden Costs

Conveyancing Hidden Costs: Before Hiring A Conveyancer

Decisions regarding real estate can often require lots of time, responsibility, and money.  There are a lot of conveyancing hidden costs and fees that wouldn’t immediately come to mind when one thinks about buying or selling a piece of property, and the process can sometimes be stressful.  Here is a list of some possible hidden costs that everyone should keep in the back of their mind while conveyancing so that they do not take anyone by surprise.

Mortgage costs

First, there’s the mortgage down payment and interest payments to think about.  Although it is possible to get loans, it is better to make a 5-10% down payment if possible.  Interest costs can get out of hand over time, so it is important to think carefully when looking at mortgage options.  Second, Stamp Duty, which is a tax taken on real estate transactions.  The tax is waved on properties up to £60,000, But between £60,000 to £250,000, you have to pay 1% of the purchase price. On properties, £250,000 to £500,000 is it 3%, and it is 4% for properties valued above £500,000. It is imperative that the conveyancing hidden costs be revealed early on in the conveyancing transaction before you take further steps.

On top of this, there is the Valuation, which is essentially a check by the Lender to ensure that the property is what it claims to be, without being overvalued.  Then you must find Insurance for the property, which is often provided by the Lender, but it is important that you shop around to find the best insurance rate possible.

Property Costs

It is important to remember that after the property changes hands, the costs of water, sewage, gas, electricity, and strata levies will also have to be paid, so it is important to research into this beforehand so that you are not stuck with costs you did not expect.  Before proceeding with any negotiations, many solicitors include a primary survey of the house and property to look for any problems. This survey can be up to £300 and includes in the cost of a Homebuyers Report, or a similar name to this.

Again we see more of conveyancing hidden costs that you can prepare for if you understand the process.

This is often something people are surprised by, but it is better than dealing with the “cost” of potentially having massive structural damage or something of the like to have to deal with after making the purchase. Some people even opt for a more in-depth survey which can cost up to £800 but is often necessary if the property is old or unique in some way.

Sometimes people charge extra for Fittings and Appliances in the house, and this is something which you can discuss beforehand.  This can often be used as a technique to bring the cost of the house down and avoid the Stamp Duty tax.  This would all have to be discussed by the buyer and seller if it is deemed to be of value.

Spontaneous Costs

Finally, there are the small, but necessary costs that will arise eventually in the conveyancing process.  These include things like moving costs, storage space, redirecting the post, new locks, professional cleaning, painting, and this list could go on, but the important fact is that there will always be unpredictable costs that arise.  By being careful and planning well, you can reduce the number of unexpected costs or conveyancing hidden costs that you have to deal with, but there will always be a few here and there, and that is just part of the process.

conveyancing search fees

Significance of the Conveyancing Search Fees

Conveyancing is a process of transferring property from existing owner to the new owner after the owner has paid the purchased amount. However, apart from the purchase price, the buyer needs to pay other fees as well, and that are known as the Conveyancing fees. A solicitor is mostly appointed for the conveyancing process. However, among all the fees conveyancing search fees are considered crucial and significant for the buyer and the solicitor as well. These fees are to verify various obligations from the legal and planning point of view. These costs are managed by the solicitor on behalf of the buyer, and thus, it is vital to know and understand about this.

How conveyancing search fees can influence the conveyancing

Conveyance fees as a whole are the entire expense for the transfer of property. This includes the fee for the solicitors and many other fees associated with it. Land Registration, Stamp Duty, and other Disbursement fees are also part of it along with the conveyance search fees. One needs to get the clarification from the various authorities with definite search regarding the property and any issue with that can increase the time required for the conveyancing process. It can drastically delay and increase the fees of the conveyance as a whole and hence should be dealt very appropriately.

What are Conveyancing Search Fees?

Many kinds of search fees are altogether termed as the conveyancing search fees. Here are some of the relevant search fees that need to be paid for the conveyance process.

Bankruptcy Search

The property should not have any bankruptcy history. Also, the mortgage taken must be cleared before the conveyance process starts. As per the rules and regulations, the solicitor must search the history of the bankruptcy and financial details from respective authorities well in advance. Any issue with the outstanding amount may lead to legal trouble for the buyer.

Local Authority Search 

Local Authority must be contacted by the solicitor to verify that all the outstanding taxes, insurances and all other dues are paid off. This is a very important search before the property is to be transferred. The solicitor must verify that there is no outstanding remaining for the property.

Land Registry Office Copies

Land Registration is one of the most significant aspects of any property, and the copies of the registration must be obtained before the process of conveyance starts. The solicitor must confirm to get the land registry office copies.

Environmental Search

The environment is considered as one of the most priority in the modern era, and every property has to follow the guidelines that do not violate the environment policies. The solicitor must verify that the property does not violate any environmental policies.

Drainage Search

Drainage is part of one of search conveyance as well and should be cleared by the authorities.

All the searches are basically to clear the house for the conveyance process. The Search Fees are fixed or depend on upon the purchase amount of the property.