Purchase Information about Documents, Interview or Telephone Conference
Please see attached sheet for identification requirements
(if not already dealt with).
Signature of Documents
At the interview you will be asked to sign the following documents
1. Agreement (Contract)
I would be grateful if you would ensure that you sign the agreement at the bottom of page 1. No legal obligation arises from signing the contract. You will only enter into a legally binding contract when we exchange contracts with the sellers’ solicitors.
There may be some sections of the contract that are not completed. These sections are completed on exchange of contracts when the matter becomes binding.
2. Mortgage Deed
By signing the mortgage deed you are confirming that you have read and understood your mortgage offer and that you agree to abide by the terms and conditions thereof. By signing the Deed you acknowledge that you are borrowing a sum of money which is secured on the property. This means that should you fail to keep up with the repayments or if you breach any of the other conditions, such as a failure to keep the property fully insured at all times, the right of repossession will arise against you.
3. Form TR1 (Freehold) or Form TP1 (new build freehold) or Lease (New build Lease or Shared Ownership)
This is the document which will be submitted to the Land Registry on completion. It is a standard Land Registry Form which will enable you to be registered as the owner of the property.
You will need to sign this in our presence and we shall act as a witness. If you are not attending the office please follow directions in the letter.
Where a plan is attached to the document please also sign the plan your signature to the plan need not be witnessed.
4.Land Transaction Return for Stamp Duty Land Tax (SDLT)
HMRC requires every purchaser to sign the above form, regardless of whether Stamp Duty Land Tax is payable. This is on all properties bought for £40,000 or over.
5. Authority to Exchange
You will be asked to sign an authority for us to exchange on your behalf.
Exchange and Completion Dates
A date for completion may have been fixed (subject to contract) before the interview. However, if not we shall be discussing this with you. Until exchange of contracts, no date is contractually fixed. We cannot exchange unless and until we receive a deposit from you. Sometimes exchange and completion take place simultaneously i.e. on the same day.
Except in certain cases (involving new leases or shared ownership) you will not need to return to the office and in particular you do not need to be at the office for exchange and completion.
Release of keys upon completion
On the day of completion, we shall send all the monies required to the sellers solicitors. If there are Estate Agents, they will then ring the agents to release the keys and you will then be able to pick up the keys from the agents.
Planning Permission and Building Regulations Compliance
A major issue in dealing with houses is whether or not any improvement works in properties have been installed in connection with the appropriate Regulatory Requirements. Because these issues are so common, we list the requirements:
- Windows. All windows installed since 2002 require a FENSA Certificate.
- Boilers. All boilers installed since January 2005 require a Commissioning
- Most Electrical work carried out since January 2005 requires an NIECIS Certificate.
- Driveways. Some driveways installed since 2009 require a Certificate.
- Any extensions will require building regulations approval and in some rare cases, planning permission.
- Conservatories may require permission.
In respect of the property you are buying, we shall have been checking all these issues. We shall report to you the position. In the event of a failure to obtain approval, the most common remedy is an indemnity policy which is a type of insurance policy. If required, we shall discuss this with you but the main thing about such a policy is it protects you against enforcement if there has been a breach of building regulations or planning permission. By the time of your interview these matters should have been dealt with. We must point out that any indemnity policy only protects you against by the local authority or other person or other who might be able to enforcement. There should be no communication with anybody who can enforce. It does not insure against defected workmanship.
Title to Property
We shall go through this with you and in particular indicate any Restrictive Covenants (agreements in respect of the property which may restrict its use).
Joint Tenancy or Tenants in Common and Contribution
You may have received guidance as to ownership e.g. whether Joint Tenancy or Tenants in Common and we shall obtain your instruction on this.
Any person will need to sign there consent to mortgage.
Leasehold Properties – you will have a report
If you are purchasing a flat it is unlikely that there will be any issues of improvement although we shall certainly need to know if you believe the property has been altered because that would have required the consent of the landlord.
Apart from this issues other important issues are.
- The lease itself and plans. It is also particularly important to establish whether there is a car parking space and the right to use it and on what terms.
- Management which can be a complex and difficult area. By the time of the interview you would have almost certainly had leasehold information and we shall need to go through this with you.
- Payment of ground rent and service charge. The vendor will be required to make payment of all outstanding ground rent and service charge on or before completion. Sometimes this involves an advance payment and in that case you will have to reimburse the vendor for that advance payment.
- Transfer charges. As you will have been previously advised, there can be quite a lot of transfer charges when purchasing a flat. We will go through these charges with you and these are paid to the management company or landlord. After registration at the Land Registry, we shall report to your bank or building society (if relevant).You will be asked to collect any outstanding documents. However, at the interview we shall normally be handing over a number of documents to you.
After registration at the Land Registry, we shall report to your bank or building society (if relevant).
You will be asked to collect any outstanding documents. However, at the interview we shall normally be handing over a number of documents to you.