Kitsons Solicitors

FAQs - Property

• Q.

  What is an energy performance certificate?

  A.

  An energy performance certificate is commissioned by the seller from an accredited Energy Assessor. The Assessor will need visit the property that will be marketed for sale in order to collect data such as the date, construction and location of the house and relevant fittings (heating systems, insulation or double glazing, for example).

• Q.

  I am selling my house, do I need a Home Information Pack?

  A.

  The duty to have a HIP has been suspended from 21 May 2010. This means homes put on the market on or after that date will no longer need a HIP. However, you will need to have commissioned, but not necessarily received an Energy Performance Certificate (EPC) before marketing can start.

  This means that a seller or a person acting on their behalf must have instructed an accredited Energy Assessor to carry out an energy performance assessment.

  Please speak to a member of the property team to commissionn an EPC.

• Q.

  What actually happens on completion and is there anything I should do?

  A.

  Completion normally takes place approximately two to three weeks after exchange of contracts, but quite often sooner. Depending upon the source of funding for the purchase, it can even take place on the same day as exchange of contracts, but this is rare where there is a chain of transactions.

  On the completion day, the buyer's solicitors will pay the amount outstanding on the purchase to the seller's solicitors. In return for which the seller's solicitors will hand over the title deeds for the relevant property.

  Once the money has been paid, the buyer is normally entitled to receive the keys of the property and can move in as soon as they are ready. Normally, sellers move out during the course of the morning of completion and buyers move in at lunchtime/early afternoon with the keys changing hands sometime between say, 12 noon and 2.30pm. Precise arrangements need to be agreed. In each case and usually the seller leaves the keys with the relevant estate agent for collection by the buyer or the keys can be handed over directly. If there is a chain of transactions, there can be delays on the completion day because of the number of bank transfers that need to take place and it is therefore best to check this on the morning of completion to see how things are progressing. Naturally we will do all that we can to minimise any difficulties and to ensure that your move goes as smoothly as possible.

  You should inform the suppliers of gas, electricity, water and telephone as well as the local council in respect of your council tax of the change of ownership. You will then be able to settle any outstanding liabilities or receive refunds in case of advanced payments made.

  If you are selling a property, we will discharge any mortgages that you may have, as well as pay your estate agents' commission account, which we would normally send to you before-hand for approval. In the event that there are surplus funds, then we will remit these to you normally on the day of completion; either by cheque or directly to your bank or building society as you direct.

• Q.

  What kinds of survey are available to me?

  A.

  There are basically two types of survey, as follows -

  A Home Buyers Survey and Valuation - The RICS Home Buyer Service is a standard format and is designed specifically as an economy service. It is intended only for particular types of home such as houses, flats and bungalows which are conventional in type and construction, apparently in reasonable condition. It focuses on essentials, such as defects and problems which are urgent or significant and thus have an effect on the value of the property. Minor items of disrepair, therefore, might not be reported at all.

  The Home Buyers Service is priced mid range, more expensive than a Mortgage Valuation but less expensive than a building survey.

  A Building Survey - A building survey is suitable for all residential properties and provides a full picture of their construction and condition. It is likely to be needed if the property is, for example, of unusual construction, is dilapidated or has been extensively altered, or, where a major conversion or renovation is planned. It is usually tailored to the client's individual requirements. A Building Survey is more comprehensive than a Home Buyer Report and includes extensive technical information on construction and materials, as well as details of the whole range of defects, major to minor.

  A valuation is only provided as an extra, by agreement.

  In addition to the above there is also a Valuation Inspection. A valuation is not a survey, it is a Property Inspection undertaken for the sole purpose of deciding on the amount of the terms of any loan. Buyers can expect to pay for a valuation to be carried out and they are usually given a copy of the report. However, the extent of the inspection is very limited when compared to a survey and no potential buyer should rely solely on the information provided by a mortgage valuation when deciding whether or not to buy a particular property.

• Q.

  There are many legal phrases I do not understand, can you explain these.

  A.

  Whilst we try to adopt a policy of plain English, there are inevitably certain legal and formal terms which cannot be avoided. Below are some definitions of such terms (in alphabetical order) that you may come across when you are moving house.

  Agreement for Sale - A written and signed contract for the purchase and sale of property or land.
  Banker's Draft- A cheque drawn by a bank. Please note a Banker's Draft still needs to be paid through the 'clearing system' just like any other cheque. It is not strictly 'cleared funds', although it is true to say that it is usually treated as the equivalent of cash.
  Building Regulation Approval - All building work in England and Wales is required to comply with the standards set out in the Building Regulations, even if the work that is done does not require planning permission. The Local Authority is responsible for inspecting and issuing any necessary Building Regulation Approvals or consents, although the NHBC normally inspects any new house, which is being built, with the benefit of an NHBC Guarantee. If work has been done on a property that would normally require Building Regulation Consent, but there is no evidence of it, you should think carefully before going ahead with any purchase.
  Completion Date - The date that the contract takes effect and ownership of the property passes from the seller to the buyer. This is also usually the day when the seller is obliged to move out of the property and the buyer moves in.
  Completion Statement - This is a list of all the financial transactions that we have dealt with on your behalf. It will give details of all the monies that we have paid to others (eg to redeem a mortgage of pay Land Registry fees, etc.) and will also show whether there is a balance of money from the transaction to be paid to you, or whether there is a shortfall that you will need to make up before we can complete the transaction.
  Conveyance - The formal document that transfers freehold land or property from the seller to the buyer.
  Covenant - An agreement contained in a contract or a deed where someone agrees to do, or not to do something.
  Disbursement - Fees that must be paid to third parties such as the Local Authority, in respect of searches and the Land Registry. We will normally make these payments on your behalf and recover them from you. This can be done either as a payment on account (before the payments are made) or out of the sale proceeds of the property
  Easement - The right to use a piece of land that you do not own. An example would be where you have a right of way over a path or driveway that is owned by a neighbour.
  Exchange of Contracts - Contracts must formally change hands in order to make them legally binding. Both the seller and buyer's solicitors will send a copy of their client's signed contract to the other side. This can be done in person or by post, but in practice this is normally done via the telephone.
  Fixtures and Fittings - Fixtures are items on a building or land that have become part of the building or land and are therefore included in the sale. Generally they are items that are physically fixed to the building such as shelves or fitted wardrobes. Fittings are items that are not attached to the building or land and are not subject to the sale, unless specifically included. For example; carpets and curtains.
  Joint and Several - Where two or more people agree to be jointly and severally liable, they are agreeing that each person, for example, is liable for the repayment of the whole of the debt and not just a proportion of it.
  Joint Tenant - The property is jointly owned so that all of the owners have an equal interest in the property. If one of the owners dies then the survivors will automatically own the whole of the property. NOTE: See also 'Tenants in Common' below.
  Party Wall - The wall between two properties that both owners have rights and responsibility for.
  Planning Permission - Permission granted by a Local Authority to carry out improvements or developments on a property eg, to build an extension.
  Searches - We normally submit searches to the Local Authority, Water Authority and a number of other organisations. This is so that we can find out everything possible about the property that you are buying. There may be additional searches we need to make depending upon the locality of the property, for example, Tin mining searches. We will advise you fully of this at the outset of your transaction.
  Service Charge - A payment made by a tenant to a landlord or his agent for repairs or maintenance to a property. This will invariably be encountered on the sale of a leasehold property.
  Stamp Duty Land Tax - A tax payable to the Government on the completion of a purchase of property or land. The amount of duty depends on the purchase price of the property. However, there are certain reliefs that can apply to a variety of transactions.
  Tenants in Common - Each owner owns a precise and specified share of the property and each is able to leave their share of the property, by will, to whomever they choose. If you own the property as 'Tenants in Common', you must be specific about the proportions of ownership, ie; do you wish to own the property in equal shares or is one person to own a greater proportion than the other? For example; person A is to own 75% and person B is to own 25%. NOTE See also 'Joint Tenants' above.
  Transfer Deed - The document that transfers title from one owner to another.

• Q.

  When will I need to make any payments

  A.

  If you are selling your property, we may require you to let us have a small payment on account to obtain what are called 'Official Copy Entries' and any other documents from the Land Registry. Usually, when you are selling, there are no other such payments, except when you are selling a leasehold property where there may be a fee payable to the freeholder, or their managing agent who has provided replies to a Management Information Questionnaire that we may be obliged to send. We would advise you of this fee when known.

  If you are buying, then we shall need to receive (from you) the monies required to carry out the various searches necessary. These will vary slightly from matter to matter and can also be determined by a geographical location of the property. We will provide you with full details at the outset of the relevant transaction.

  With regards to your purchase, you will need to pay a deposit (part payment of the purchase price) to the seller's solicitors, when contracts are exchanged. This will normally be anything between five or ten percent of the purchase price and we will request these funds from you when required but please note that sufficient time normally has to be allowed for any deposit cheques to clear at our bankers.

  If you are selling a property at the same time as buying, it is normally possible to 'pass on' the deposit received from your sale. Again we will discuss this with you fully if applicable.

  Upon completion of any purchase, you will need to provide us with any balance monies that are required to complete the transaction. We would normally provide you with a completion statement (ahead of the relevant completion date) so that you can make payment to us, allowing sufficient time for any cheques to clear.

• Q.

  How long will my property transaction take?

  A.

  Most property practitioners would estimate between six and ten weeks from beginning to end. However, this time scale is governed by a number of factors, in particular the number of properties involved in the 'chain'. Generally, the longer the 'chain', the longer the whole process is likely to take, as the 'chain' can only proceed as quickly as the slowest. We will, of course, do all that we can to ensure your transaction proceeds as quickly as is possible. However, there are many matters over which we have no or very limited control, such as other people's financial arrangements.