Selling your property is a slightly more straightforward procedure as compared to the home buying process. Sellers should bear a few matters in mind before they get ready to put their property on the market:
Make sure you are presenting your home in the best possible light – click here for some tips on what you can do.
Putting the Property on the Market
Most sellers market their property through an estate agent, however, it is becoming increasingly common for sellers to explore other ways to sell their property, for example, via the internet. Whichever method you choose, check the costs position so you are fully aware of the amount you will have to pay out once the sale goes through.
Accepting an Offer on the Property
Once you accept an offer on the property you should take it off the market. However, you should note that you are not legally obliged to sell the property to the Buyer until a formal exchange of contracts has taken place.
Instructing a Conveyancing Solicitor
You should instruct a Conveyancing Solicitor once the offer is made on the property.
Outstanding Mortgage on the Property
If you have any arrears then try and clear them once you start the conveyancing process. If you cannot then you or your conveyancer should notify the lender that the property is to be sold and the arrears and any associated legal costs will be settled out of the sale proceeds.
It is also a good idea to request a redemption statement from your lender which will tell you how much there is left to pay on the mortgage. It will also tell you of any penalty charges you may be liable to pay.
Commission an EPC
You must commission an EPC when you market your property and it must be produced within 28 days of the property going on the market. Contact Fridaysmove today for an EPC quote.
Completing your Property Information forms
Your conveyancer will provide you with a seller’s property information form, fixtures fittings and contents form and a seller’s leasehold information form (if the property is leasehold) for you to complete. These documents will form the pre-contract package and will be sent to the Buyer’s Solicitor or Conveyancer along with the Draft Contract and Title Deeds.
Getting your Documents Signed
The Contract must be signed before exchange of contracts takes place. Your conveyancer will carry out a formal exchange by telephone and your part of the contract will then be sent to the buyer’s conveyancer. The Buyer’s solicitor will send your conveyancer their client’s part of the contract together with the agreed deposit.
The Transfer is a very important legal document. It transfers the legal ownership of the property from the Seller to the Buyer. It must be signed by the Seller.
Once the Buyer’s conveyancer has reviewed the pre-contract package they may raise further enquiries with your conveyancer for you to address. You should answer any such enquiries accurately bearing in mind that any false information you give can lead to a misrepresentation claim against you.
The deposit is sent to the seller’s conveyancer on the day contracts are exchanged. Depending on how long a gap there is between exchange and completion, it is usually sent in the form of a cheque. It is NOT paid to the Seller until after completion has taken place. It is held by the Seller’s conveyancer in their client account and can only be released on completion. If completion does not take place due to the seller’s fault, the deposit is returned to the Buyer. If the Buyer defaults then they may forfeit their deposit.
Leasehold Properties – Service Charges and Ground Rent
Try to clear any arrears on the service charge and ground rent accounts with the Landlord or Managing Agents. If arrears are not cleared an undertaking will need to be given by the Conveyancer to clear the arrears on completion. You should keep hold of statements and receipts of the most recent payments.
Your conveyancer should provide you with a completion statement showing the amount due to you, after exchange of contracts. This will take include your conveyancer's fees, the amount left to pay on your mortgage and any apportioned ground rent or service charge due to the Landlord.
Practical Advice for Completion
- Notify utility companies that you are moving
- Book a removal Company
- Clear the garden and property of rubbish, where agreed
- Carry out any agreed repairs
- Make arrangements regarding the collection of keys by the Buyer
- Clear the property of fixtures and fittings that are not to be left at the property