Terms of Engagement

USEFUL INFORMATION & FAQS 

(to be read in conjuction with our Terms of Engagement)

USEFUL INFORMATION & FAQS

Outline of a typical transaction

· The seller must find a buyer. The seller’s solicitor obtains the title deeds and prepares a contract which is submitted to the buyer’s solicitor. 

· The buyer’s solicitor will examine the draft contract and supporting documentation to ensure it meets the buyer’s requirements and perhaps more importantly, those of any lender. 

· The buyer’s solicitor makes a number of searches and enquiries with the object of finding out all he can about the property and the buyer signs the contract.

· If the buyer is taking a mortgage the buyer must arrange this and obtain a satisfactory mortgage offer prior to exchange of contracts 

· Both parties then enter into a formal contract to buy/sell the property.  This fixes the completion date and the purchase price and if either the buyer or the seller wish to withdraw from the contract or delays completion the party at fault will be subject to contractual penalties e.g if the buyer withdraws they would lose their deposit.

· The buyer’s solicitor prepares the purchase deed.

· The final stage is completion. This is completion of the terms of the contract. The buyer pays for the property and the seller hands over the keys and the deeds for the property. 

· After completion the transaction is registered at the Land Registry. At busy times the Land Registry may take many weeks to register your transaction. Where clients have purchased a property we forward to clients a copy of the updated Register Entries when the Land Registry have completed the transaction registration. In view of dematerialisation it is often the case that the deeds of a property are held only in electronic form or a as a pdf i.e. they may not be any paper deeds. 

Answers to Frequently asked questions when buying and/or selling a house

“How long does the whole process take?”

An average uncomplicated case may take eight weeks or longer from issue of contract documentation and issue of formal offer of mortgage. However, as no two properties are the same, this may vary from several weeks to several months. 

“What are conveyancing searches?”

Searches are submitted to find information about the property. A plan is required to submit searches. Results disclose information about the property which may materially affect the value of the property; make the property un-saleable; affect your willingness to proceed; etc.

Searches submitted as standard are Local Search and Coal Report. Please advise us in writing if additional searches are required and we shall inform you of the cost of the additional search (payment will be required from you to enable us to order the search).

Local Search – reveals information held by the Council about the subject property being bought e.g. new roads, planning history. If you are concerned about possible development in the surrounding area you should make your own additional  enquiries with the local planning authority.

Coal Report – reveals whether or not the property is built on a coal mining shaft and other information.

We advise that the following additional further searches should be obtained:

Environmental Disclosure Report - reveals information about historical land contamination and other information. We recommend that an Environmental Disclosure Search with Insurance for possible land “clean up” costs is obtained.

Chancel Report – submitted to enquire if a property is required to contribute towards repairs to the chancel of the local parish church. Such liability is enforceable in the County Court and may apply to properties falling within a Church of England parish which has a vicar or had a vicarage and has a church dating from the medieval period or earlier.

Flood Report – reveals information about flooding; flood risk assessment; coastal erosion etc

Drainage Search – reveals whether the property is connected to mains drainage and to the mains water supply and includes a plan showing the routes of connections pipes etc.

“Should I have a survey”

Yes – the property is sold as seen. As the general rule in Conveyancing is "let the buyer beware" it is very important that you are fully satisfied as to the condition of the property before you sign the contract documentation. When buying a property you should not rely only on a mortgage valuation. A mortgage valuation is not a survey report and is for the “lender’s mortgage purposes only”.  Often, a mortgage valuation is based on a limited inspection of the property and, sometimes, only a ‘desktop’ report is prepared without a physical inspection.  We advise that you have a Home Buyers Survey and Valuation Report or building survey of the property carried out by a suitably qualified surveyor and have the services (e.g. gas supply, electrical supply, drains and central heating system etc) inspected by qualified engineers or relevant expert(s). We further recommend that prior to exchange of contracts that you obtain reports and estimates for any matters disclosed/revealed by your surveyor(s) or expert(s). Please supply a copy of the mortgage valuation and/or building survey as soon as possible. Please bear in mind that trees can have an effect on foundations and drainage systems. If trees are in close proximity to the property we advise that you should obtain the expert opinion of the Tree Surgeon/Structural Surveyor for advice regarding this.

“What is planning permission and/or building regulations approval indemnity insurance”

The effect of such a policy is to protect you against enforcement action being taken by the Local Authority in certain circumstances. It does not provide cover for any structural defect in the property. Cover can also be withdrawn with some policies in the event that enforcement action is taken consequent upon discovery of infringement as a result of inspections for new alterations. It must be remembered also that a prior approach to the Local Council may disqualify a subsequent application for this type of indemnity insurance.

“When should I contact you for an update?”

We aim to keep clients informed of developments. Weekly updates should be adequate. Please note that contacting us on a daily basis or more frequently will increase the time taken to deal with your transaction. We give an estimate at the outset of the transaction. This is calculated on the basis of receiving a reasonable number of emails/visits/telephone calls from or on behalf of you. We shall notify you if we consider that the number of emails/visits/telephone calls exceed those we have based our estimate on e.g. where overly anxious clients frequently contacting us or where clients try to get too involved in the Conveyancing process in the mistaken belief that contacting us on a daily basis will help to speed the transaction up. It simply doesn’t and will inevitable lead to delays and additional charges. Additional email/telephone call/visit will be charged for at a rate of £200.00 plus VAT per hour or part thereof.

“What are enquiries before contract?”

The buyer’s lawyer makes a number of enquiries regarding the legal title of the property to ensure that all the requirements of the Lender are met and to ensure that no problems will occur on a re-sale.

“I can’t find my ground rent receipt, what should I do?”

If you are unable to produce a receipt in respect of the last demand for ground rent an allowance will be made on completion in respect of unpaid ground rent (maximum six years). In addition, absent landlord insurance may be required which will cost you a further, approximately £100.00 to £300.00. Such monies will be deducted from the proceeds of sale on completion. We recommend that you contact the ground rent collector (who may make a charge) and obtain a receipt. Our charges for obtaining a receipt on your behalf are £100.00 plus VAT.

“What is Good Leasehold Title Insurance and/or Absent Landlord Insurance?”

Following amendments to the UK Finance Lender’s Handbook in 1999 many of the properties in this area are no longer considered acceptable security for a mortgage e.g. Leasehold Properties and properties where the ground rent collector is absent. In such cases indemnity insurance may be required to proceed. The cost varies from approximately £50.00 to £250.00 upwards depending on the sale price and other variables. If indemnity insurance is arranged we charge £75 + VAT in respect of arranging each indemnity policy.

“What is indemnity insurance?”

Indemnity insurance is commonly used during conveyancing transactions to cover some sort of legal defect which can't be resolved swiftly or at all. This will be accepted by the buyer's conveyancer when the buyer is otherwise satisfied with the property and wants to protect themselves and any mortgage lender against future problems.  The indemnity policy doesn't remedy the defect – it simply provides financial compensation in the event of the defect causing a loss.

“What is the difference between ‘Joint Tenants’ and ‘Tenants in Common’?”

Briefly, when two or more people own property there are two ways the property may be held;

Joint Tenants – means that on death the remaining owner(s) will own the property. Also the property cannot be left to a third party under a Will.

Tenants in Common – means the owners can hold the property in equal or unequal shares and on the death of a co-owner his, her or their share will pass to his next of kin, or, under the provisions of any Will he or she has made.

“Do you advise on Tax Implications?”

No, we advise you to consult a qualified accountant for advice regarding the possible tax consequences of a proposed transaction.

“When will my first mortgage payment be?”

Please contact your Bank/Building Society to enquire when and how much the first payment will be.

“Who arranges a completion date?”

This is arranged by negotiation between clients/estate agents/solicitors. However there is no point trying to arrange a completion date until all the lawyers in the chain have confirmed that they are in a position to proceed.

“What does exchange of contracts mean?”

This is when a legal relationship is created between the seller and buyer, often referred to as the “point of no return” i.e. it is not easy to change your mind. Until exchange of contracts either party can withdraw from the transaction without penalty. Therefore we can only exchange contracts when we consider that the title of the property is satisfactory. It is reaching this point which takes the longest. However we cannot proceed at the expense of the necessary paperwork which must be in place and you will have to be patient. Prior to exchange of contracts either party may withdraw from the transaction without penalty. Following exchange a legal relationship has been created and parties who withdraw face severe financial penalties.

“What does completion mean?”

Completion means completion of the terms of the Contract i.e. the day when the buyer pays for the property, the seller vacates the property and keys change hands. As this requires a bank transfer of funds this must be a working day e.g not a Saturday or a Sunday.

“How long is there between exchange and completion?”

We recommend a period of ten working days between exchange of contracts and completion otherwise this will incur additional work in trying to comply with a possibly unrealistic completion date for which we reserve the right to charge for. Similarly further charges may also be made for additional work following last minute cancellation of completion e.g. re-arranging completion; returning mortgage funds; obtaining further redemption statements. This will be a minimum of £100.00 plus VAT plus each associated bank transfer fee of £40 + VAT per property.

“Do I see you on the day of completion?”

Normally all outstanding points will have been dealt with and it will not be necessary to attend our offices on the day of completion.

“When and what time do I get the keys?”

On completion the exact time depends on when the property is vacated and the time the telegraphic transfer of money takes place – therefore do not expect to receive the keys prior to 3pm on the day of completion!!!! Electronic transfer of funds between Banks may take several hours to be processed by a Bank and is beyond our control

“When do I hand the keys over?”

Do not hand over keys until we say it is safe to do so.

“When do I cancel my mortgage payment?”

After completion, not before.

“When do I receive the sale proceeds?”

As soon as practically possible following completion.  This is usually on the day of completion however there may be occasion when payment is made in the day(s) following completion. Sale proceeds are issued by bank transfer to clients

“Where do I get the keys from?”

Usually from the Estate Agent or direct from the seller. Make arrangements at least two or three days prior to completion.

“What happens to deeds after completion?”

If you are having a mortgage, the lender may want to hold these as security for the loan. However some pre-registration deeds may not be required by the lender and you will be asked to collect them from our office following completion. These maybe required when you sell the property. Keep them safe. We do not store deeds on behalf of clients.

“HTB ISA” and “LIFETIME ISA” administration charges. 

We charge £50 + VAT in respect of processing each HTB ISA or LIFETIME ISA.

“What is an “EPC?” – please visit -

https://www.gov.uk/buy-sell-your-home/energy-performance-certificates

“How do I change my address at the Land Registry” Please visit –

https://help.landregistry.gov.uk/app/contactus_change_of_address

“I have recently married. How do I change my name at the Land Registry?” 

Please visit - 

https://help.landregistry.gov.uk/app/contactus_change_of_name

DOs and DON’Ts

· Do be patient 

· Do not pay money direct to the person selling the property. This will cause complications with regard to your mortgage.

· Don’t hand the keys over for your house unless we say it is safe to do so.

· Don’t try to arrange a completion date without confirmation from us that we are in a position to proceed.

· Do give us at least 10 working days notice of a proposed completion date subsequent to us confirming that all outstanding matters have been dealt with. Failure to do so means that we will be required to arrange an “expedited completion”. This will incur additional charges of upto £250 plus VAT per property.

· If you are in rented accommodation DO NOT give notice to quit to your landlord unless we have stated it is safe to do so otherwise YOU may be making yourself homeless.

· Do contact the seller of the property to discuss keys, telephone numbers, burglar alarm codes, gas suppliers, electricity suppliers.

· Do read all of your mortgage offer and ensure that you have complied with all requirements.

· If you are buying DO arrange for your Buildings Insurance to commence on exchange of contracts. We are often required to supply Buildings Insurance Details to your lender prior to completion. Therefore ensure that these meet all the requirements of your lender and supply this information to us at least two weeks prior to completion otherwise delays may occur. If you are selling ensure your Buildings Insurance remains in force up to and including the date of completion.

Other points to note

The person dealing with your transaction is also dealing with other complicated matters which require their full attention and will not always be available when you contact us. Therefore, if unavailable, another member of staff will try to deal with your enquiry. If this is not possible the person dealing with your transaction or a member of staff will contact you to deal with your enquiry, usually on the same working day or within a working day or two.

Please do not contact us on a hourly basis (or more frequently) as this will only cause delays as we will be taken off work we are currently dealing with to answer your enquiry. 

Please remember, once we are in a position to proceed we will contact you. As there may be several individuals in a chain, a completion date must be agreed by all parties. There is no point trying to impose a completion date on another party. 

The Solicitor or Licensed Conveyancer of another party (e.g. of your buyer or seller) is professionally barred from speaking to you and you should not contact them.

Please note that this Firm as a whole is dealing with your transaction and every attempt will be made by our company to keep you informed as necessary as to progress being made.

We care about our staff and will not tolerate verbal abuse or harassment of our staff. Please note that our staff have been authorised to end telephone calls if they are verbally abused or if they feel threatened. 

We always act in the best interests of our clients. There may be occasion where you instruct us to proceed in a manner which in our professional opinion is not in your best interests and in those circumstances we will make you aware of this and it may become necessary for us to inform you that we will no longer be able to act for you and ask you to seek alternative representation. 

FRAUD & PHISHING

Property Alert is an award winning free property monitoring service aimed at anyone who feels a registered property could be at risk from fraud. We advise and recommend that our clients take advantage of this scheme and visit - https://propertyalert.landregistry.gov.uk/

Once you have signed up to the service, you will receive email alerts when certain activity occurs on your monitored properties, allowing you to take action if necessary. 

WARNING

`Phishing’ is a modern-day fraud technique where criminals disguise themselves in e-mails as a trustworthy person, such as a solicitor, in an attempt to acquire sensitive information, such as bank details, or to divert money to their own account rather than to the solicitor’s account.

As reported recently on television and in the media, clients buying and selling properties and other solicitor’s clients have been targeted by criminals. Therefore, we are pro-actively taking steps to protect our clients from possible attacks and at the same time keeping our clients informed of these procedures.

Our bank details are shown below. We have no current intention to change our bank, but, if in the future we do decide to change our bank, we will notify you by post. We will never notify you of a change in bank details by e-mail.

Virgin Money UK, Rochdale 

Account Number: 24883033 

Sort Code: 05 07 22 

Any email coming from a member of our team, at Adam Ledger Property Lawyers Limited will end with @adamledger.co.uk. 

If you receive a request from an email address which ends differently to this (even if it is only one letter different e.g. @adamlegder.co.uk or @adamledgers.co.uk) or you have suspicions as to the authenticity of the email, then please contact us by phone and we will confirm our client account bank details over the phone. Nevertheless, we will never inform you of changes to our bank details by e-mail.Before transferring funds to us, please call our firm to confirm our bank details.