National Conveyancing Week
National Conveyancing Week runs from Monday 20th March to Friday 24th March, and focuses on shining a positive light on the work of conveyancers. Much of the work done by those in this profession goes unseen and can be complex, leading to misunderstandings about what is involved. A lot goes into selling a property, but these experts do it each and every day, despite the challenges faced!
In this article, we will outline eight crucial legal issues when buying a house in England and Wales to help you navigate the process with confidence. We also explore eight important issues that have to be considered when selling your home in England and Wales. Many of these issues are legal considerations that your solicitor will take care of as part of their standard processes.
Eight things to remember when buying a house
Buying a house is one of the most significant investments that most people make in their lifetime. Whether you are a first-time buyer or an experienced property investor, the process of buying a house can be daunting and complex. In addition to finding the perfect home, there are numerous legal considerations that you need to keep in mind when purchasing a property, but that is where your solicitor comes in. As experts in conveyancing, they will know the property market inside out and the processes involved in buying your dream property.
If you are buying a house in England and Wales, there are several important legal aspects that must happen to ensure a smooth and successful transaction.
1 - Conveyancing
Conveyancing is the name of the legal process of transferring the ownership of a property. You should engage with a solicitor to handle the legal aspects of the transaction, as it can be complex, and there are clear procedures that need to be followed.
2 - Property searches
Your solicitor will carry out a range of property searches to check if there are any potential issues with the property which could affect your use or enjoyment of the property. These could identify, for example, whether the property is listed, subject to a tree preservation order or whether there are highways or planning decisions that could affect the property. Once these searches have taken place, the solicitor will report back to you about any issues they found, or if there is any cause for concern.
3 - Stamp duty
Stamp duty is a tax that you need to pay when you buy a property over a certain price. The rules and rates for stamp duty vary depending on the value of the property and other factors.
4 - Exchange of contracts
Your solicitor will have negotiated the terms of the contact with the seller. The transaction is the point at which the buyer becomes legally committed to buying the property and the seller is legally committed to sell it. Your solicitor will explain the terms of the contract to you and the implications of the exchange of contracts.
5 - Completion
At completion, the purchase price, taking into account any deposit paid at exchange of contracts, is paid to the seller and the buyer becomes the owner of the property. Your solicitor will tell you when this has happened and you will be able to collect the keys from the estate agent.
6 - Property ownership
There are two types of property ownership in England and Wales: freehold and leasehold. Your solicitor will carry out a search of the Land Registry to find out whether the property you are buying is owned on a freehold or leasehold basis. Your solicitor will explain the implications of this to you and any obligations that you might have to fulfil if you buy the property.
7 - Mortgage
If you need to take out a mortgage, it is important to understand the terms and conditions of the mortgage agreement. Mortgage advisors and solicitors often work together, helping protect your interests and offer the best financial options for you.
8 - Property insurance
It is important to arrange adequate insurance coverage for the property, both before and after completion. Your solicitor will help you to identify what types of insurance you might need and when you might need them.
Eight things to remember when selling a house
Conveyancing can be a long and stressful process, but the work of conveyancers helps to reduce this significantly by taking on many of the more complex tasks. Selling a house can be daunting, and many legal considerations need to be taken into account to ensure a smooth and successful sale, such as providing an Energy Performance Certificate and completing Property Information Forms. It is also important to consider issues such as property boundaries, Capital Gains Tax, and the conveyancing process itself. Understanding what each of these issues includes can help you understand the work of your conveyancer.
1 - Conveyancing
The conveyancing process involves transferring legal ownership of the property from the seller to the buyer. It is essential to work with a qualified solicitor or conveyancer who can handle the legal aspects of the sale, including the drafting and review of contracts, the transfer of funds, and the registration of ownership with the Land Registry.
2 - Energy Performance Certificate (EPC)
An EPC is required when selling a residential property in England and Wales. The EPC rates the energy efficiency of the property on a scale from A to G, with A being the most energy-efficient. The certificate is valid for 10 years and must be provided to the buyer before the sale is completed.
3 - Capital Gains Tax
Subject to certain conditions, you do not need to pay Capital Gains Tax when you sell your home. If you sell a property that isn’t your home, or you live abroad, you may need to pay Capital Gains tax. A specialist tax advisor can help you understand whether any tax might be payable.
4 - Property Information Forms
When selling a residential property, the seller is required to complete a Property Information Form and a Fittings and Contents Form - so your conveyancer will make sure this is complete by sending you all the relevant paperwork, and help you complete it.
The Property Information Form provides the buyer with details about the property, such as any disputes or complaints with neighbours, building work or renovations, and any guarantees or warranties that are still valid. The Fittings and Contents Form lists all the items that are included in the sale, such as appliances or light fixtures.
5 - Property Boundaries
It is important to ensure that the property boundaries are clearly defined and any disputes with neighbours over the boundaries are resolved before completing the sale. This can be done by checking the title deeds, commissioning a survey, or consulting with a solicitor.
6 - Estate Agent's Fees
If you are using an estate agent to sell your property, you will need to pay their fees, which are typically a percentage of the sale price. It is important to shop around and compare fees from different agents to ensure you are getting a fair price.
7 - Repairs and Renovations
It is important to consider any repairs or renovations that may be required before putting your property on the market. Addressing these issues before the sale can help to increase the property's value and make it more appealing to potential buyers.
8 - Timing
The timing of your sale can have a significant impact on the price you receive and the speed of the sale. Factors such as the time of year, market conditions, and the state of the economy can all impact the sale price. It is important to consider these factors when deciding when to put your property on the market, and to be prepared for the possibility that the sale may take longer than expected.
This article aims to supply general information, but it is not intended to constitute advice. Every effort is made to ensure that the law referred to is correct at the date of publication and to avoid any statement which may mislead. However, no duty of care is assumed to any person and no liability is accepted for any omission or inaccuracy. Always seek our specific advice.
