19 January, 2018

Kingfields Solicitors

 

 

Frequently Asked Questions.

The FAQ page is split into 4 sections. Please choose the section relative to you.


Questions relating to purchase transaction

Is a survey necessary?

The old phrase "the buyer be aware" applies to a house purchase. If there is found to be anything wrong with the property after exchange of contracts then the seller will not be liable and the buyer will have to pay for any necessary repairs.

If you are obtaining a mortgage then the mortgage company will arrange a valuation of the property. It is not advisable to merely rely on the valuation report alone because the condition of the property is not considered in detail. However it is often possible for an extra fee to arrange for the same valuer to carry out a more detailed inspection called "Home Buyers Report" or even a structural survey, if the property is very old and needs expenses for repairs and alterations.

From June 2007, the seller will be required to provide a Home Information Pack which will contain the Home Condition Report which assesses the condition of the property and how energy efficient the property is.

When do I have to pay the deposit?

Prior to exchange of contracts, we will send you a Report on Title on the Property. If all your enquiries have been answered and you are happy to proceed with the transaction, we would at this stage ask you to transfer to us the 10% deposit funds required for us to exchange contracts. A deposit is paid over to the seller's solicitors on exchange of contracts as a down payment on the property

Very often a reduced deposit is agreed, for instance, where you are obtaining a 95% mortgage the deposit payable on exchange would be 5% of the price.

Where you are selling and buying simultaneously, very often the deposit being paid by the purchaser of your existing property can be utilised as the deposit payable on your purchase transaction.

Why do we need a Local Authority Search?

The Local Authority Search is a comprehensive list of questions relating to the property that are put to the Local Council. The Local Search will flag up issues such as whether the property will soon have a motorway running through the back of the garden, whether there is pending liability for repair of a private road and the planning history of the property. The Local Search will not cover, certain matters such as it does not reveal whether or not there are any proposed developments or other matters affecting any adjoining building or of course any matters arising after the date of the search. Only limited information is given about drainage. Therefore if you have any concerns about potential matters in the area, which might affect the property then you should make direct enquiries at the Local Authority.