Moving home can be one of the most stressful things you do, and there are many things to consider before reaching the day of completion. This article aims to highlight 5 things you may not be aware of and to help prepare you for a smooth transaction.
1. Gather your documentation
If you have ever had any work, alterations, tests or services done at your property, you are likely to be asked to provide documentation in relation to the same. Depending on what work or services have been done, you could be asked for any of the following:
- FENSA certificate for replacement windows or doors
- Electrical installation certificate
- Boiler installation certificate
- Gas Safe certificate
- HETAS certificate
- CORGI certificate
- Building Regulation approval
- Planning permission
- Invoices
- Guarantees
Please note that this list is not exhaustive and there may be other documents you are asked for.
You will be given a Property Information Form by your solicitor or conveyancer to complete and return at the beginning of the transaction. It would be helpful to provide any documentation you have when you return the completed Property Information Form so that your solicitor or conveyancer can forward this to the buyer’s solicitor or conveyancer straight away.
2. Be prepared to provide indemnity insurance
Indemnity insurance policies are obtained to protect the buyer when certain information is missing or elements of the Title have been breached by previous owners of the property. Below are a couple of examples of when an indemnity insurance policy may be obtained:
- When a boiler is installed, this requires building regulations and a Building Regulations Compliance Certificate should be provided on completion of the installation. If such certificate has been misplaced, the buyer’s solicitor will ask you to provide an indemnity insurance policy. The policy will protect the buyer in the event that enforcement action is ever brought against them by the Local Authority.
- Some properties are subject to ‘restrictive covenants’. These are legal obligations that bind the property and of which must be adhered to during ownership. An example of a restrictive covenant could be ‘not to erect any building at the property without the prior written consent of the Vendor’. If a conservatory had been added to the property and there is no evidence of consent in relation to the same, this could be seen as a breach of covenant. The buyer’s solicitor is therefore likely to require an indemnity policy to protect the buyer in the event that the person with the benefit of the covenant chooses to enforce it.
Indemnity policies are a form of protection for a buyer and vary in price depending on the policy and the value of the property. They are a one-off payment and last in perpetuity. If you agree to cover the cost of an indemnity policy, this is usually deducted from the final sale proceeds that will be sent to you on completion.
3. Do you have occupiers aged 17 years or older?
If there is anyone who occupies the property (i.e. lives there without any legal or beneficial interest) and is aged 17 years or older, they will need to sign an Occupier’s Consent contained within the Contract. This is to ensure that the occupier will vacate the property on or before completion.
4. Receiving enquiries from your buyer’s solicitor
It is standard practice for a buyer’s solicitor or conveyancer to raise enquiries about the property and documentation provided by the seller and their solicitor or conveyancer. You may feel that some of the enquiries are unnecessary or that you simply don’t know the answer, and it is sometimes a misconception that enquiries are the result of the buyer being difficult or wanting to pull out of the transaction. But it is important to remember that a lot of the enquiries are being asked from a legal perspective and part of the solicitor or conveyancer’s due diligence. Don’t worry if you don’t have the answers, just let your solicitor or conveyancer know and they will talk you through the next steps.
5. Delays from a buyer’s perspective
You may get to a point where you feel you have done everything you need to do and that you are waiting on the buyer to be ready. This can feel frustrating but below are some reasons why the buyer may not be ready to proceed to a completion at the same time you are:
- They await search results. Searches reveal lots of different information about the property and surrounding area and the buyer is entitled to obtain them before committing to the purchase.
- They have a mortgage and their lender requires a certain number of days to request funds.
- There is a chain where multiple sales and purchases are dependent on each other. Each transaction in the chain may be at a different stage at different times.
These 5 things are relevant to any sale transaction but please note that no transaction is identical to the other. In addition to these considerations, there could be many reasons why there are unexpected delays with your property sale.
If you have already instructed us to act for you on a property sale and are concerned about the time things are taking, please get in touch with your solicitor or conveyancer by email or by telephone call. They should be able to advise you on what stage of the process we are at – we are more than happy to help!
If you have received an offer on your property and are looking to instruct our team, please visit our online conveyancing calculator by clicking here to receive a free quote or alternatively please email web@swinburnemaddison.co.uk.
This article is for general information only. It does not and is not intended to constitute legal or professional advice. The law may have changed since this article was published and we would always recommend that you seek specific advice on any particular legal issue.
