Agreement/contract
The contract document contains standard conditions that have been approved by the Law Society that set out the terms of the legal relationship between seller and buyer and includes the price, the extent of the property being transacted and the completion date.
The contract is prepared in duplicate, one part is signed by the seller(s) and one part is signed by the buyer(s). The contract does not become legally binding on the parties until contracts are exchanged.
Buildings insurance policy
Buildings insurance must be in place from exchange. This can be arranged through your lender (if you have one) or you can arrange it yourself. If your purchase is with mortgage finance, you must arrange buildings insurance in accordance with the detailed requirements of your lender as described in your mortgage offer.
Drainage and water search
This search requires that the provider of water and sewer services to the property answers a number of standard questions regarding the services supplied including annual charge and location of pipes.
Environmental and plan search
The environmental search result examines the past and current uses of the area in which the property is situated and reveals any potential contamination or pollution issues, which as a buyer you could in certain circumstances be responsible for the cost of cleaning up.
Fittings and contents list
A copy of this will be supplied by the seller and will be sent to you. Please report any discrepancies from the situation as described by the agent or the seller to us immediately. It will be too late after exchange to amend the list. You must also take time to check that any electrical or mechanical fittings being left in the property are in good working order.
Life assurance policies
Life cover ensures that in the event of your death, a sum of money is available from which your mortgage can be repaid. If you need to take out this type of insurance because you have dependants, you should ensure that cover is ‘on risk’ before we exchange contracts.
Please note there is no legal requirement for this to be obtained and we do not need to see a copy of it.
Local authority search
A Local Search will have been carried out before you exchange contracts on your purchase, if you are purchasing with a mortgage. The Local Search is an enquiry made of the Local Authority.
It provides information about planning, highways, tree preservation orders, special designated areas e.g. smoke centres and other matters involving the local authority. The search is only against the property you plan to buy. It will not show, for example, planning permission granted for neighbouring land. If you wish us to search against other adjoining land, please let us know.
Mortgage offer
Your mortgage offer and our mortgage instructions are usually sent out by the lender simultaneously. The offer may include conditions relating to the interest rate being charged or to works which must be carried out to the property. The offer will be subject to the lender’s standard terms and conditions (in small print).
Lenders often make deductions from mortgage monies to cover their admin or fund transfer fees. Please remember that we can only exchange contracts on your behalf if we have valid mortgage instructions from your lender. Otherwise, you could be committed to buying a property without the funds to do so.
Other searches
Depending upon the area in which the property you are purchasing is situated, there may be other searches to be made, for example, coal mining searches, commons registration searches, etc. We will advise you if there is a need for these as the transaction progresses.
Property information form
This document is completed by the seller and provides some practical information about the property and includes details about occupiers, guarantees issued in respect of the property, planning matters, services etc. If any of the information causes you concern or conflicts with your own personal knowledge of the property, you should let us know.
Requisitions on Title
This is the Law Society’s standard set of pre-completion questions. It is used prior to completion to deal with administrative completion arrangements such as where keys can be collected and where completion monies are to be sent.
Stamp Duty and Land Tax Return
One of the documents you will be asked to sign is a Stamp Duty Transaction Return which we submit to HM Revenue & Customs on completion. If your purchase attracts payment of Stamp Duty Land Tax we will send payment at the same time. This needs to be submitted as soon as completion takes place to avoid a late payment penalty.
Transfer deed
This is a formal land registry document which transfers property from seller to buyer on completion. It also records how multiple buyers will hold the property between them. It needs to be agreed by both parties and then signed by the seller and in most cases, the buyer, before completion can take place. Signatures are to be witnessed by an independent adult witness who should also sign the document.
Survey
Regardless of whether or not you require mortgage finance to purchase, it is up to you to satisfy yourself as to the condition of the property before exchange of contracts as it will be almost impossible and costly to rectify any problems after exchange and/or completion has taken place.
If you decide to go ahead with a survey of the property we recommend that it is carried out as early as possible as any matters highlighted will require further investigation and any negotiations will need to be dealt with before contracts can be exchanged. A survey will provide expert advice on the condition of your property – whether you plan to live in it, rent it out or sell it. Surveyors should conduct an in-depth visual inspection of the property. Their report will provide an expert account of the property’s condition and should highlight any areas of concern.
Different firms provide different types of survey. You should always discuss your requirements with your surveyor who will be able to advise you further.
