You might consider several things before purchasing your new home, especially since COVID-19 and the subsequent changes to standard protocols.
To assist you, here are some helpful legal pointers for you to keep in mind when purchasing your new home.
1. What’s pre- exchange?
You make an offer to the seller and you entrust a solicitor to act for you in the purchase. The solicitor will request searches and carry out due diligence to highlight any issues relating to the property. Once both parties have approved the contract, you can instruct your solicitor to exchange contracts.
2. What happens at exchange?
When both parties are ready, you and the seller will each sign one part of the contract. This is then exchanged by the two firms of solicitors and you will pay a deposit to the seller (usually 10% of the purchase price). Once exchange of contracts has occurred, a legally binding agreement is created.
3. What’s completion?
The completion date is agreed as part of the exchange and is inserted in the contract. On ‘completion’ you will pay the seller the balance of the purchase price and provide your solicitors with required funds to pay SDLT and Land Registry fees. Following completion, the seller’s solicitors will send their signed transfer deed to your solicitor.
4. How do we sign documents in respect of COVID-19 norm?
On 4 May 2020, the Land Registry announced “Mercury signing” as a temporary method for the signing of deeds. The process involves capturing a signature page with a scanner or camera and emailing the image to your conveyancer. The signature must still be signed in pen and witnessed in person.
5. What does freehold mean?
Freehold means your ownership is not limited in time and you will be buying the property outright, including the land it’s built on.
6. What does leasehold mean?
Leasehold means you will be buying the right to live in the property for a period of years (often 99, 125 or 999 years). You will own the property for this period of time only however, you will usually able to apply for a new lease in the future (subject to a lump sum payment for the new lease).
7. What’s a title register?
It provides details about the property or land. There are three components. (A) “Property”: provides a description of the property; the date the property was first registered; and any rights it may benefit from; (B) “Proprietorship” states the name and address of the current owner; when they bought the property; how much was paid; and (C) Charges: lists mortgages and other rights or interests that may limit the use of the property.
Blog provided by Charles Russell Speechlys LLP