Buying property can involve a major financial outlay – and it can also mean dealing with the complexities of real estate law. For a property transaction to be legally binding and final, it will need to satisfy a number of criteria. So, how can would-be buyers approach the market with confidence? Let’s run through the process.
Understanding the Legalities of Property Transactions
The good news is that the vast majority of property transactions follow the same basic formula.
The conveyancing process begins when an offer on a property is accepted by the seller. You’ll need to first examine a draft contract, along with a number of forms completed by the seller. Your solicitor should check the length of the lease on your behalf.
It’s typically a good idea to have a property surveyed before you exchange contracts. Your solicitor will then conduct ‘searches’ to ensure that there are no other complicating factors that might get in the way of the transaction. If there’s a mortgage involved, then you’ll need to ensure that the property provides enough security for the loan. This is done through what’s called a mortgage valuation.
Once you have building insurance in place, you’ll be able to sign and exchange contracts. While it is possible to pull out after this stage, you’ll typically incur a financial penalty for doing so. On the other hand, the seller is forbidden from accepting a different offer, which means you won’t be gazumped.
Avoiding Common Pitfalls in Real Estate Deals
Most difficulties arising during the conveyancing process tend to stem from a handful of common sources. If the title to the property is unclear, then it might be disputed. A miscommunication between you and your solicitor might also result in your transaction running into problems. A failure to properly budget for the transaction can also lead to problems. Make sure that you account for the additional costs imposed by conveyancing solicitors, removal vans, and stamp duty.
The Role of Real Estate Lawyers in Transactions
Generally, the more experience and knowledge of the terms involved you have, the better your chances. This is why it’s a good idea to seek out quality legal advice from experts who specialise in real estate. Do your research, and don’t settle for the one recommended by the estate agent.
A good legal team will help you to get the best deal, and make sure that you’re on the right side of the law. They’re duty-bound to protect your interests as the buyer – and they might even have insights that allow you to avoid additional stress along the way.
Ensuring a Smooth Transition
Once the transaction is final and legally binding, you’ll still have the practical challenge of settling into the new home to contend with. Make sure that you’ve arranged your removal ahead of time, and that you’ve contacted all the relevant utility companies about your change of address.
