How do I choose an agent and do I go for a smaller independent or a big corporate? The corporates often offer the comfort of a household name and associated back up. The independents offer established local knowledge and flexibility. It is wise to speak with at least a couple of agents and probably from both sectors. You will know very shortly who you will be able to work best with but be sure they are members of a recognised professional body.
How can I be sure that the agents valuation is realistic? Valuation is an art and therefore the price can only be seen as a guide. Ask your agent to back up their valuation with comparable sales, do not be tempted to go with the highest price and do your research. The land registry now allows swift access to sale prices.
How many times is seemed reasonable to view a property before offering on it? Often people know the property is right as soon as they see it. However it is prudent to view it twice and preferably at a different time of day. If the 2nd viewing is as good or better than the 1st it is likely you have found the right place.
What is defective title insurance? It is not uncommon for issues to arise on properties that cannot be resolved, for example where the owner of a piece of land that gives access to a property cannot be traced, the title therefore becomes defective. In this case it may be possible to insure against the risk of owner suddenly appearing and refusing to let people in to the property.
Can I keep my dog in a flat? In many cases simply no. Ask to see the head lease and this will confirm whether animals can be kept in the building. If no, approach the freeholders or the management company as they may make exceptions.
How can I be sure that the landlord will return my deposit when I leave my rented flat? Firstly you must be sure that the property is left in clean and good condition. A reasonable tenancy agreement should be clear as to the terms on which the deposit is held. Before handing over your deposit be sure who will be holding it. In most cases it is better the agent holds it as stake holder but be sure they are members of a voluntary body such ARLA.
I am buying a new flat with ground rent arrears, why is it so important that these are settled before my going ahead as I am willing to negotiate the difference directly with the owner? The ground rent figure may appear nominal but a refusal to accept or invoice ground rent by the freeholder is a way that they can formally object to a breach in the lease. Therefore there could be far more complicated issues than just a bill to settle.
With estate agents terms are there just the two types sole agency and multiple agent? As a rule sole agency involves instructing just one agent to act for you but does not incur a fee if you sell it privately, multiple is the same but you can instruct as many as you like and only pay the selling agent. There is sole selling rights where you pay the agent whether they sell it or not, usually reserved for large or complex transactions.
Why am I able to exchange contracts on a brand new property from a developer in 2 or 3 weeks but a re-sale usually takes at least twice as long? The developers have all the necessary information ready for your solicitors before you start and are able to answer any questions themselves. Delays can occur particularly with leasehold property where there is a need to confirm the previous charges and alike with the management company, as a brand new property has no history.
On exchange of contracts a deposit has to be paid, how much is this for and how does it work in relation to a property chain? The buyer at the bottom of the chain is expected to put down a 10% deposit on exchange of contracts. In most cases their seller can then use that money, top up the balance as necessary to place a 10% deposit on their purchase and so up the chain it goes. It is sometimes the case that a negotiated reduced deposit of say 5% is agreed but the liability is usually held at 10%.
Who is responsible for the up keep and security of a property once the contracts have exchanged? The seller still owns the property until the sale completes and therefore has responsibility and full enjoyment of it, however the buyer must insure it upon exchange of contracts, as they are now committed to purchase the property.
My solicitor is experiencing delays in getting management information on my new flat, I know the building well and have told them to proceed anyway, but they are refusing to. As their client, surely they must do as I tell them? To an extent yes, however assuming you are getting a mortgage on the property the solicitor also acts for the mortgage company so will be bound by them also.
My agent is insisting on seeing a copy of my passport and a utility bill proving I live in my property before he is willing to market it for sale. I am unwilling to release such information, why does he need it? The introduction of new money laundering regulations ensure that the agent must know your identity and the guidelines recommend a passport or photographic driving licence as a minimum requirement. No agent will market a property without these.
Just prior to exchanging contracts on the sale of my property my solicitor informed me that she had a ‘release’ on my purchase. What did she mean by this? If a number of properties are involved in a chain it is impractical to get all the solicitors on the phone together to exchange contracts. Therefore a release is offered, this means that for an agreed period of time the solicitor will guarantee to exchange contracts when asked. Thus you will not sell a property with the risk of being unable to buy the new one.
What is a retention on a purchase? In some cases, especially leasehold properties, it is not practical to get all information regarding outstanding debts prior to selling or buying. The solicitors will withhold an agreed sum of money back to cover any unforeseen debts which will be settled from the retention. Any spare will be returned to the seller.
What are the stamp duty rates and when are they paid? The buyer will pay stamp duty on completion of a purchase usually via the solicitors on any purchase over £120,000 under that no duty is paid. In some cases this has been extended to £150,000 in ‘disadvantaged areas’.
£120,001 to £250,000 the duty is at 1%
£250,001 to £500,000 the duty is at 3%
£500,001 + 4%.
Note that the full duty is paid ie. at £250,001 the duty is 3% of the whole price.
