A STEP BY STEP GUIDE TO SELLING YOUR HOME

A STEP BY STEP GUIDE TO SELLING YOUR HOME

The legal process involved in selling a property can be frustrating especially if you don't understand the process and terminology involved. The following narrative is intended to act as a guide to assist you in the house selling process.

It is now compulsory for all home owners in England and Wales to commission a Home Information Pack (HIP) before being able to market their property for sale. It is a legal requirement that you have a HIP in place prior to placing your property on the market for sale. Failure to do so may lead to prosecution and a small fine.

You can commission your HIP through your estate agent or though an independent third party.

A Home Information Pack consists of 3 sections, the Legal section, Search section and the Energy Efficiency Report.

The relevant sections of the Home Information Pack will contain the following documentation:-

Legal Pack
• A Sale Statement - describing the property being sold.
• Evidence of Title - from the Land Registry or copies of the title deeds to the property.
• A property information questionnaire providing information in relation to the property.
Leasehold transactions may require additional documentation which could include:-
• Copy Lease.
• Details of the Landlord or Management Company.
Searches

A Local Authority Search will be required. A Local Authority Search will provide information as to whether or not roads have been adopted by the Local Authority; whether alterations have been made to the property and general information affecting the property of which the Local Authority are aware.

Water and Drainage Search. This search provides information as to whether the property has the benefit of foul drainage and surface water to a public sewer and whether adoption agreements have been entered into with the relevant Water Authority in this regard.

Energy Efficiency Report

The Energy Efficiency Report involves a Standard Assessment Procedure (SAP) which is a calculation of a building's energy efficiency. This is a government strategy to monitor and reduce greenhouse gas emissions, particularly carbon dioxide and to save energy consumption.

The Conveyancing Process

Once a purchaser has been found for your property, you will need to appoint a Conveyancer to act on your behalf. There are many advantages of choosing a Conveyancer prior to your purchaser being found as they will often prepare all of the legal documentation associated with the sale of your property prior to the property being sold. Many Conveyancers undertake this work on a “no sale no fee” basis. The advantage of undertaking this work early is in order to ensure that you are in a position to issue contract documentation to your purchaser as soon as the sale is agreed.

Once you have appointed a Conveyancer they will write to you enclosing their contact details and the Terms and Conditions under which they are instructed to act. In this letter your Conveyancer will ask you for the name and account number of your mortgage lender so that the cost of repaying your mortgage can be ascertained and your title deeds obtained immediately. Your Conveyancer will also request that you complete pre-contract enquiries in relation to the property which you are selling. This documentation will contain enquiries in relation to the premises, such as whether or not any extensions have been built at the premises, or whether or not there are any on-going neighbour disputes. The letter will also contain a Fixtures Fittings and Contents List which will need to be completed by you in relation to those items which you have agreed to leave at the property with your Buyer. Your Conveyancer will also request that you provide full details of any planning permissions, building regulation consents or guarantees which are available with the premises.

Once a Purchaser is found
Once the sale of your property has been successfully negotiated, your Estate Agent will forward what is known as a 'Memorandum of Sale' onto your Conveyancing Team. The Memorandum of Sale will confirm the full address of your property, the sale price agreed, the Buyer and the Sellers details and details of their respective legal teams. Upon receipt of the Memorandum of Sale your Conveyancer will request up to date copies of your title deeds from the Land Registry. These documents are known as 'Official Copies'. 90% of all property in England and Wales is now registered at the Land Registry. The Official Copies of your title deeds will show the up-to-date position including all relevant mortgages on your property as at the date of request. Following receipt of the Memorandum of Sale and the return of your pre contract enquiries, your legal team should be in a position to provide the following documentation to the Buyers Legal Team:
• Official Copies of the title deeds from the Land Registry
• Draft Contract documentation
• Answers to your pre-contract enquiries
• Fixtures Fittings & Contents List
• Planning permissions and other miscellaneous documentation and guarantees
• Home Information Pack
Signing documents
Once your Purchaser is in a position to proceed, i.e. they have received all relevant pre-contract documentation, their offer of mortgage and the results of their searches, your Conveyancer will write to you and request that you sign all relevant documentation.

The documents that you will need to sign will include a contract and a transfer document (which will transfer the property to your Purchasers on completion).

Exchange of Contracts
The contract is the document that will commit you to selling the property and commit the Buyer to buying the property. The contract will contain details of the Seller and the Buyer, the property and the purchase price. The purpose of exchanging contracts is to commit all parties to the property transaction. Its purpose is also to fix a completion date. The completion date is the date that the property transaction is finalised and the date that you will sell the premises and move house (if applicable). Please note that contracts are not exchanged by you simply signing the contract. More often than not a contract is exchanged by the Conveyancers acting for both parties talking to each other over the telephone and confirming that contracts are exchanged.

Post Exchange of Contracts
Following the successful exchange of contracts your Conveyancer will need to undertake the following work on your behalf:
• Obtain redemption figures for any mortgages on the premises.
• Prepare a Statement of Account which will show any balance due to you or from you prior to completion of your property transaction. The Statement of Account will contain full details of all monies expended and received throughout the course of your transaction, including your Estate Agent fees.
Completion
The completion date is the day that you will sell your property. The keys to your property should be deposited with your Estate Agent with strict instructions for them not to release the keys to your Purchaser until such time as they receive notification from your Conveyancer that they may do so. The keys will not be released to your Purchaser until such time as your Conveyancer has received the full purchase price from the Purchaser's legal representatives. On completion your Conveyancing Team will:
• Obtain the purchase monies from the Purchasers legal representatives.
• Notify the Estate Agents that they may release the keys.
• Send the title deeds through to the Purchasers legal representatives.
• Repay any mortgages on the property.
• Pay the Estate Agents fees on your behalf.
• Account to you for any balance due.
Post Completion
Work continues for approximately two months post completion whilst your Conveyancers await the discharge documentation from your mortgage lender. Once received this documentation is forwarded onto your Purchasers legal representatives and your Conveyancing Team may proceed to close their file of papers.

Further resources can be found at
Home moving Tips
Conveyancing solicitors uk