conveyancing information

conveyancing information

Merriman Waine & Co Solicitors Web Site

Our Views as to Legal Work for house sale and purchase

	We recognise that for many people the sale or purchase of a home represents the largest financial commitment that they are ever likely to make
	We understand that these transactions can be very stressful!
	We appreciate the need to communicate with our clients and other parties
	We believe that legal work requires skill and training and that clients are entitled to expect that their legal work is carried out in a professional manner by a Solicitors Practice who are well experienced in conveyancing work
	We believe that clients benefit from the personal attention skill and experience that only a local family solicitor can give

Stages of Legal procedure in House Sale and Purchase Transaction (in summary)

	If you are selling, you should contact us at the outset in order that we can arrange for the preparation of the HIPS package *(see below)
	When the sale has been agreed the Estate Agents (if Agents are appointed) will send Notification of Sale to both parties and their Solicitors
	The Seller's Solicitor will obtain the Deeds of the Property, prepare the Draft Contract and send this to the Buyer's Solicitor
	The Buyer's Solicitor will carefully examine the various documents, carry out all necessary pre-contract searches and raise Enquiries as necessary with the Seller's Solicitor
	When the above steps have been completed and the Contract is approved and the Buyer has received his Mortgage Offer Contracts can (subject to any dependant transaction) be exchanged and a Completion Date is then inserted in the Contract
	The Buyer's Solicitor will then prepare the Land Registry Transfer for approval by the Seller's Solicitor and will raise legal enquiries called "Requisitions on Title". The Buyer's Solicitor will also make final pre-completion searches with the Land Registry and Land Charges Registry and make arrangements for funds to be available from the Lender
	On Completion the Buyer's Solicitor will arrange for the purchase monies to be paid over to the Seller's Solicitor, usually by Bank Transfer (CHAPS), and when received the keys will be released (normally via the Estate Agents) and the Deeds will be sent to the Buyer's Solicitor

Note: The above is a very brief summary of the procedures. Conveyancing is a complex subject and for more information on any particular aspect of a transaction please contact us

*HIPS Although generally considered by Solicitors Agents and Buyers to be of little or no value, we are unfortunately stuck with HIPS. However, in order to provide the best possible service for our clients, we have made arrangements with a HIPS producer who is able to provide the Packs quickly and efficiently at a very competitive cost. This is working very well.

Stamp Duty Land Tax

Stamp Duty Land Tax is a Government Tax which is imposed upon various kinds of legal transactions. This Tax replaced the previous Stamp Duty provisions as from December 2003. Unfortunately the new Tax involves the completion of a lengthy and rather complicated form and there are severe penalties for delay in dealing with this. Although the form represents a Tax return by the Buyer if required we can deal with the completion of the form

Current Stamp Duty Land Tax Rates on House Purchase

Amount			%
0	-	125,000	0
125,001	-	250,000	1
250,001	-	500,000	3
500,001 and over			4
Note: For new leases different scales apply - ask us for details

Note: In certain areas there are exemptions for transactions under £160,000. Ask us for details if you are not sure about the area where you are buying. Sadly Pewsey is not one of these areas!

Different provisions apply for Commercial Property. There is an exempt band for transactions up to £150,000

Land Registry

The Government Land Registry covers all parts of England and Wales. All purchases mortgages and most other land transactions must be registered at the Land Registry

Current Land Registry Fees for purchases (as from 13 October 2003)

Value or amount			Fee
0	-	50,000	40
50,001	-	80,000	60
80,001	-	100,000	100
100,001	-	200,000	150
200,001	-	500,000	220
500,001	-	1,000,000	420
1,000,001 and over			700

Note: Different fee scales apply for re-mortgages of Registered Land and certain other transactions

Unregistered Land

Years ago, before the establishment of the Government Land Registry, when property was bought and sold the transactions were recorded on documents known as Deeds. Following the setting up of the Land Registry various parts of the country were over a period of time designated Compulsory Registration Areas, the effect of this being that when property in that Area was sold it was a legal requirement that the Title be registered at the Land Registry. In 1990 the remaining areas of England and Wales not previously included became Compulsory Registration Areas, and now as properties change hands, an increasingly large part of the Country is Registered Land. The Land Registry is fully computerised and provides a quick efficient and reliable service to solicitors. However, unregistered properties still exist in a significant number and solicitors are often involved in additional and more complex legal work when dealing with unregistered properties. As Wiltshire was one of the last parts of the country to become a Compulsory Registration Area we are very experienced in dealing with the problems that sometimes occur when dealing with Unregistered Land.

Note: With effect from 13 October 2004 the Land Registry no longer issues paper documents of Title (ie. the Deeds) which previously were known as Land Certificates or Charge Certificates, depending upon whether there was a mortgage. It is always possible to obtain a copy of the Land Registry Documents upon payment of a small Land Registry Fee. Ask us if you need advice on this.

Searches is another word for enquiries where relating to a Government department or other Public body. There are various kinds of Searches:

	Local Authority Searches - these searches are to find out if there are any planning or other adverse matters registered against the Property
	Land Registry - these searches enable us to check the Land Registry Title to see if any changes have been made
	Land Charges Registry Searches - these searches tell us if there are any adverse registrations against an owner of a property for example the existence of a second mortgage or bankruptcy
	Company Searches - these searches are sometimes needed when dealing with a Limited Company and tell us certain information which is recorded at Companies House
	Mining Searches - necessary for a property is situated in an area where mining has been carried out in the past
	Environmental Searches - these searches tell us whether there is a risk of land being contaminated
	Drainage Search - this search gives information as to the route of mains drainage and water services in the vicinity of the property. This helps us check to see whether all necessary legal rights exist for these services.

Note: Searches are costly and not all searches are required for every transaction. From our experience and local knowledge, we are able to advise you which searches of these searches are appropriate so as to avoid you incurring unnecessary expense. Some searches are now provided in the HIPS package.

Exchange of Contracts and Completion

	Exchange of Contracts is the legal procedure which ensures that the parties to a sale and purchase are legally committed to the transaction. Once contracts have been exchanged a party cannot normally withdraw from the transaction without suffering penalties. A Deposit (traditionally 10% of the price) is paid by the Buyer at this stage.
	How long should it be before contracts are exchanged? About four weeks from the start of the sale is a good guide, but this can vary considerably because of the particular circumstances.
	Why is it that sometimes it takes much longer than this to exchange contracts? Unfortunately there are often chains of house sales, sometimes running into double figures and contracts may only be exchanged when everyone in the chain is ready to go ahead. For example someone in the chain may be waiting for their mortgage, or there may be a legal problem that is being resolved. You should also remember that it is probably the case that not all sales in the chain started at the same time.
	Completion is the date when the sale and purchase is completed. This is when the remaining monies are paid over and the property is handed over to the purchaser.
	The usual time for completion is between two to three weeks from exchange of contracts, but the parties can agree shorter or longer times. It is generally unwise to go for a completion date less than a week away.
	Tip: Do not agree a proposed completion date too early on in the transaction and always discuss dates with your Solicitor to check that the date is realistically achievable.
	Click here for more house sale and purchase tips

TransAction

TransAction is a protocol devised by the Law Society to speed up Conveyancing, the main objective being to provide the Buyer's Solicitor at the start of the transaction with as much information as possible. We fully participate in the TransAction Scheme and at the onset of a sale Sellers will be given the following forms to complete:

	Seller's Property Information Form. This is a questionnaire filled out by the Seller giving essential information about the Property.
	Fixtures and Fittings List. This is completed by the Seller and sets out the items in the Property, for example curtains, carpets which are being left or are to be removed.
	There is a special Sellers Property Information Form for Leasehold Property
	Tip: always return the Transaction forms to us as quickly as you can so as to avoid the sale being delayed. We will help with any difficult questions.
	Click here for more house sale and purchase tips

Similarly, on a purchase these forms will be given to us with the 'Contract Package' and we will give you copies. You should check these documents carefully and contact us right away if there are matters which you are concerned about. The TransAction forms are important as they do form part of the contractual relationship between the Seller and Buyer.

Ten house Sale and Purchase Tips:

	Tell us when the house goes on the market so that we can begin some of the preliminary legal work. In the unlikely event that the transaction did not proceed, normally we would make no charge for this preliminary work other than to cover our out of pocket expenses.
	If you are buying a property in a district that you do not know very well, have a good look round the surrounding area and try to talk to some locals about the property and the area that it is situated in.
	If you are a buyer, find a lender and have your mortgage agreed in principal as quickly as possible. Mortgage delays account for the majority of problems in house purchase chains
	Please return the Sellers Property Information Form and Fixtures Fittings and Contents List to us as quickly as you can. Take a copy of the Fixtures and Fittings form so that you know what you have agreed to!
	Let us know your general preferences as to completion dates but do not agree firm dates with your buyer or seller without discussing the matter with us first.
	Do not negotiate price adjustments directly with your seller or buyer. It is far better to leave this to the Agents.
	Seek out a removal firm at an early stage but do not make a firm booking until we tell you that it is safe to do so.
	If you are arranging Buildings Insurance yourself get this organised in good time and follow any requirements of your lender very carefully as most lenders insist on this being in place before mortgage funds can be released.
	Be prepared to provide us with funds for the Deposit and balance of purchase monies about a week before these are needed to allow for clearance of cheques or make arrangement for such monies to be transferred by the Bank CHAPS system.
	Be prepared for there to be some delay in the keys being made available to you on Completion Day. It is often late morning before keys can be released, particularly if there is a long chain involved. If possible, have a mobile phone with you and tell us the number. Ring us if there is a problem so that we can take immediate action to resolve it.

Legal Fees

The amount of Legal Fees depend upon a number of factors, including the nature and complexity of the transaction and the value of the property concerned. We will always provide an estimate of the amount of Legal Fees and this will be confirmed in writing.

Disclaimer

Merriman Waine & Co is a firm of Solicitors practicing in Pewsey Wiltshire, and like all Solicitors in England and Wales is Regulated by the Law Society. This site contains general information based on the laws and procedures of England and Wales. Although every effort is made to check the accuracy of the information given, the contents of the site being of a general nature should not be construed as legal advice and visitors to the site should take appropriate legal advice. Merriman Waine & Co disclaim any liability in relation to the use of the site.