What is the process for purchase?
Agree a price, give deposit, then what?
Asked on May 8 2011,
General in London |
When you have an offer accepted, you are at the stage known as sale agreed. Contracts have not yet been exchanged so you do not yet legally own the property. This is where your solicitor gets involved to check out all the legal aspects of the sale. When you appoint a solicitor, think about the importance of appointing a recommended one. Your solicitor has the power the speed the process and it has the power to slow it down. This is also when you (or your mortgage advisor) will go ahead with your formal mortgage application, to check that your lender’s willing to lend on that specific property.
Mortgage (if applicable)
Before your mortgage lender makes you an offer, they’ll need a mortgage valuation to check that you’re not borrowing more money than the property is actually worth. Buying a home is a massive investment, so you might also want a homebuyer survey or building survey. This provides a far more detailed assessment of the condition of the property.
Once your mortgage lender is happy, they’ll send your mortgage offer, including details of the terms, to you and to your solicitor.
Exchange of Contracts:
The formal exchange of contracts agrees the terms of the sale and makes them legally binding on both you and the seller. Before the formal exchange, you’ll need to finalise and sign your mortgage documents, send your deposit to the seller’s solicitor and sign your contract.
Once the exchange has happened, you can look forward to the completion date when the money gets transferred, and the property legally changes hands. This is normally four weeks later, but you can choose to exchange and complete on the same day if you need to.
On or just before the day of completion, your solicitor will pay what you owe to the seller’s solicitor. Once you’ve had the call to confirm that the money has been transferred, the transfer document and title deeds will be yours. You can pick up the keys.
Hope this helps.
Vanet Property Asset Management
Answered on May 16 2011,
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