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This Guide is intended to explain the typical steps
involved in buying a property. The Guide is free to everyone, not
just customers of Remaxpropertywealth.net. After reading it, you should
have enough knowledge to handle your purchase with confidence.
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| Your questions answered: |
What service can I expect from an estate agent?
The estate agent is paid by the Vendor, so they act for them not
the purchaser. He is not obliged to highlight negative aspects of
the property to you. The agent will show you suitable property and
put any offers to their vendor clients. |
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What costs do I need to
consider?
There are a number of costs to be taken into account when buying
property. Typically these are: -
- Solicitor's fees
(including stamp duty, local authority searches, etc)
- Part payments on council tax, ground rents, service charges
- About 10% deposit
- Property insurance and house contents insurance
- Mortgage (indemnity premium and arrangement fees - usually can
be added to mortgage)
- Surveyor's fees
- Removal firm
- Services
(any utilities that need to be reconnected, mail redirection)
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I'm a first time buyer,
what's the process involved?
Roughly these are the steps
involved in buying property:-
- You find a property
- You get a mortgage and appoint a solicitor
- The mortgage company will carry out their valuation on the property
- You instruct a surveyor to do a home buyers report or full survey
- The Vendors Solicitor supplies draft contract, title deeds on
the property to your Solicitor
- Your solicitor arranges for local search and raises any queries
with the Vendor's solicitor.
- Once your solicitor is satisfied you can proceed to signing
contracts and agreeing a completion date.
- You provide the Vendor with the deposit
- Signed contracts are sent to you from Vendor
- Contracts are exchanged and you arrange insurance for the property
- Completion takes place on agreed date
- Your solicitor pays remainder of purchase price to Vendor's
solicitor
- Vendors solicitor confirms that sale is complete and arranges
for keys to be handed over.
- You move in!
Top tips for home buyers
Keep registering with estate agents.
Sometimes agents don't get back to you or send details. It can seem
like they're not interested and you wonder if they want to sell
houses! This is a misleading perception - they're just busy and
someone else might have beat you to the post. Estate agents are
not obliged to call you when your ideal property comes in. So it
pays to call and visit regularly.
Appoint a solicitor before you find a property.
This will avoid delay once you've found a property and want to proceed
to survey. It also shows the purchaser/estate agent you're serious
about buying.
Find out the history of property you're interested in. E.G.
How long it has been on the market, if any offers have fallen through
etc. This'll highlight any possible problems - for example did the
purchaser find a problem at survey stage.
Offers should always be subject to survey.
Make an initial offer of around 10% less than the purchase price
and be prepared to go upwards. You may meet somewhere in the middle.
However, in a market where demand is high properties usually achieve
their asking price and you run the risk of loosing it.
Establish solicitor's costs up front.
Legal costs can mount up so establish what it could cost best and
worst case. That way you can budget.
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What survey will I need?
If you wish to appoint a Surveyor to prepare a report on the condition
of the property then this should be done when your offer has been
agreed. Normally, three types of Report are available, depending on
the extent of information you require. You should ask your solicitor
which type of survey is appropriate for the property you're buying.
Mortgage Valuation Report - This one is carried out by the
mortgage company to determine that they are prepared to lend you
money to buy the property. Often their valuation can be up to 15%
lower than the asking price - this is because they are always more
cautious. It does not mean that the property will not sell for the
asking price. It's not advisable to rely on a mortgage valuation
- the mortgage company has no legal obligation to you. So you should
arrange either a Home Buyers or Full Structural Survey.
Home Buyer's Report - This is the survey which most people
arrange. This was made available by The Royal Institution of Chartered
Surveyors in the 1980's to bridge the gap between the basic Mortgage
Valuation Report and Full Structural Survey.
Full Structural or Building Survey Report - This survey
can be a very detailed report depending on what agreed with the
surveyor. It goes a few steps further than the Home Buyers report
and is often recommended for property that is particularly old.
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How should I choose a solicitor?
It is important to appoint a Solicitor who will deal with the
sale of your property promptly. The cheapest might not be the one
who looks after your interest best. It is essential the Solicitor
is geared to handling residential sales, can be readily contacted
and can deal with your work speedily. In our experience, it is in
your interest to appoint a Solicitor who is fairly local.
What's involved in the Solicitor's role?
You may want to get your solicitor involved as soon as you make
an offer (which should be made subject to survey). Your solicitor
can then advise what steps to take if there are any problems with
the survey.
When the buying processes starts and the Vendor's Solicitor has
obtained the property title deeds etc from the Vendor's Building
Society or Bank, they will prepare the contract of sale. Your Solicitor
will then examine the papers and raise any queries based on the
title deeds, and related matters about the property.
When your Solicitor is in receipt of all replies to enquiries,
a satisfactory local search, a copy of a mortgage offer, a signed
contract and a deposit cheque, they can then proceed to exchange
of contracts.
The deposit cheque is normally for a sum of 10% of the purchase
value of the property. You therefore need this sum in order for
you to progress to exchange. Exchange means the transaction is legally
binding.
Completion is normally 28 days from the date of exchange. On completion
your Solicitor hands over the remainder of the purchase money to
the Vendor's Solicitor.
At completion, not before that exact time, you can move into your
new home. Keys will be handed over by the Vendor or estate agent.
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| What do I need to arrange at exchange of
contracts?
Arrange removals- The British Association
of Removers (est. over 100 years) can give you a list of removal
firms in your area. BAR vet and inspect these firms and can therefore
testify to their reliability. As services offered and prices differ
between BAR members, BAR recommend that you contact 3 of their members
to match the one most appropriate to your needs. BAR can be contacted
on telephone 0181 861 3331.
Obviously, also see if a friend or neighbour can recommend a removal
firm. Get more than one quotation and don't base your decision on
price alone.
Arrange insurance - Buildings & Contents -
You will
need to arrange insurance for your property usually when contracts
have been exchanged. Your solicitor will be able to advise.
Services, Maintenance Contracts and Council Tax -
It is
important, in order to avoid unnecessary costs/avoid disconnection,
that you notify the service authorities (gas, water, telephone,
electricity) of the date that you will be moving from your property.
Also you'll need to notify the service authorities in the area you
are moving to of your move in date.
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Where can I get more
advice and information?
Governing bodies/organisations serving their respective sectors
should be able to help you with queries. They should also be able
to give you a list of their member service providers. These member
service providers commonly agree to adhere to professional standards
laid down by the organisation and compliance is usually checked.
This provides clients with assurance of professional service standards,
protection and recourse where relevant. If you feel you have received
an unsatisfactory service, these organisations should be able to
advise you on complaint procedures.
Removals
British Association of Removers -
279 Grays Inn Road, London, WC2 8SY
Tel: 020 7837 3088
www.bar.co.uk
Estate agency
Selling bodies ~
The Estate Agents Ombudsman Scheme (OEA) - The OEA Scheme
provides an independent service for dealing with disputes between
agencies that subscribe as members and consumers who are actual
or potential buyers/sellers of residential property in the UK. The
Ombudsman is independent of the member agencies. He undertakes to
offer a free, fair and speedy review of complaints falling within
his terms of reference. Complaints will be considered by the Ombudsman
where the consumer believes that the member agency has: treated
them unfairly; been guilty of maladministration (incl. inefficiency
or undue delay) that has caused losing money or suffering inconvenience;
not conformed to the OEA Code of Practice; infringed their legal
rights.
The OEA cannot act against an agent who is not a member of its
Scheme. Further information is available from the Ombudsman for
Estate Agents, Beckett House, 4 Bridge Street, Salisbury, Wiltshire,
SP1 2LX. Tel: 01722 333306 Fax: 01722 332296.
National Association of Estate Agents (NAEA) - Members are
individuals practising within their field - a company cannot be
a member. Members are bound by the NAEA's rules of conduct, which
have been drawn up to protect public interest and are backed by
a formal disciplinary procedure. Members are competent in estate
agency law, practice and ethics. The NAEA offers a mediation service.
www.naea.co.uk
Legal/conveyancing
The Law Society - The Law Society is the professional body for
solicitors in England and Wales. The body sets standards that underpin
the profession's reputation. Their publications 'The Solicitors
Regional Directory' and 'Directory of Solicitors' gives details
on solicitor firms. www.lawsoc.org.uk
Surveyors
The Royal Institution of Chartered Surveyors (RICS) - Members are
bound by strict rules of conduct on matters such as client confidentiality
and conflict of interest. Members advising clients must hold professional
indemnity insurance and follow regulations governing the handling
of client's money. Continual updating of skills is compulsory for
practising members. www.rics.org
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Disclaimer
This buying guide is provided by estate agent
remaxpropertywealth.net.
Readers should take any advice at their own risk.
remaxpropertywealth.net
accept no responsibility for any action taken, or loss occurring
as a result of any advice/information in their guides. This guide
does not cover the Scottish estate agency system. |
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