The legal process involved in selling a property can be frustrating especially if you don’t understand the process and terminology involved. The following narrative is intended to act as a guide to assist you in the house selling process.

 

It is now compulsory for all home owners in England and Wales to commission a Home Information Pack (HIP) before being able to market their property for sale.  It is a legal requirement that you have a HIP in place prior to placing your property on the market for sale.  Failure to do so may lead to prosecution and a small fine.

 

You can commission your HIP through your estate agent or though an independent third party.

 

A Home Information Pack consists of 3 sections, the Legal section, Search section and the Energy Efficiency Report.

 

The relevant sections of the Home Information Pack will contain the following documentation:- 

Legal Pack

A Sale Statement – describing the property being sold. Evidence of Title – from the Land Registry or copies of the title deeds to the property. A property information questionnaire providing information in relation to the property.

Leasehold transactions may require additional documentation which could include:-

Copy Lease. Details of the Landlord or Management Company.

Searches

 

A Local Authority Search will be required. A Local Authority Search will provide information as to whether or not roads have been adopted by the Local Authority; whether alterations have been made to the property and general information affecting the property of which the Local Authority are aware.

 

Water and Drainage Search. This search provides information as to whether the property has the benefit of foul drainage and surface water to a public sewer and whether adoption agreements have been entered into with the relevant Water Authority in this regard.

Energy Efficiency Report

 

The Energy Efficiency Report involves a Standard Assessment Procedure (SAP) which is a calculation of a building’s energy efficiency. This is a government strategy to monitor and reduce greenhouse gas emissions, particularly carbon dioxide and to save energy consumption.

 

 

 

 

 

 

 

 

The Conveyancing Process

 

Once a purchaser has been found for your property, you will need to appoint a Conveyancer to act on your behalf.  There are many advantages of choosing a Conveyancer prior to your purchaser being found as they will often prepare all of the legal documentation associated with the sale of your property prior to the property being sold.  Many Conveyancers undertake this work on a “no sale no fee” basis.  The advantage of undertaking this work early is in order to ensure that you are in a position to issue contract documentation to your purchaser as soon as the sale is agreed.

 

Once you have appointed a Conveyancer they will write to you enclosing their contact details and the Terms and Conditions under which they are instructed to act. In this letter your Conveyancer will ask you for the name and account number of your mortgage lender so that the cost of repaying your mortgage can be ascertained and your title deeds obtained immediately. Your Conveyancer will also request that you complete pre-contract enquiries in relation to the property which you are selling. This documentation will contain enquiries in relation to the premises, such as whether or not any extensions have been built at the premises, or whether or not there are any on-going neighbour disputes. The letter will also contain a Fixtures Fittings and Contents List which will need to be completed by you in relation to those items which you have agreed to leave at the property with your Buyer. Your Conveyancer will also request that you provide full details of any planning permissions, building regulation consents or guarantees which are available with the premises.

 

 

Once a Purchaser is found

Once the sale of your property has been successfully negotiated, your Estate Agent will forward what is known as a ‘Memorandum of Sale’ onto your Conveyancing Team. The Memorandum of Sale will confirm the full address of your property, the sale price agreed, the Buyer and the Sellers details and details of their respective legal teams. Upon receipt of the Memorandum of Sale your Conveyancer will request up to date copies of your title deeds from the Land Registry. These documents are known as ‘Official Copies’. 90% of all property in England and Wales is now registered at the Land Registry. The Official Copies of your title deeds will show the up-to-date position including all relevant mortgages on your property as at the date of request.  Following receipt of the Memorandum of Sale and the return of your pre contract enquiries, your legal team should be in a position to provide the following documentation to the Buyers Legal Team:

Official Copies of the title deeds from the Land Registry Draft Contract documentation Answers to your pre-contract enquiries Fixtures Fittings & Contents List Planning permissions and other miscellaneous documentation and guarantees Home Information Pack

Signing documents

Once your Purchaser is in a position to proceed, i.e. they have received all relevant pre-contract documentation, their offer of mortgage and the results of their searches, your Conveyancer will write to you and request that you sign all relevant documentation.

 

The documents that you will need to sign will include a contract and a transfer document (which will transfer the property to your Purchasers on completion).

 

 

 

 

 

 

 

 

Exchange of Contracts

The contract is the document that will commit you to selling the property and commit the Buyer to buying the property. The contract will contain details of the Seller and the Buyer, the property and the purchase price. The purpose of exchanging contracts is to commit all parties to the property transaction. Its purpose is also to fix a completion date. The completion date is the date that the property transaction is finalised and the date that you will sell the premises and move house (if applicable). Please note that contracts are not exchanged by you simply signing the contract. More often than not a contract is exchanged by the Conveyancers acting for both parties talking to each other over the telephone and confirming that contracts are exchanged.

 

Post Exchange of Contracts

Following the successful exchange of contracts your Conveyancer will need to undertake the following work on your behalf:

Obtain redemption figures for any mortgages on the premises. Prepare a Statement of Account which will show any balance due to you or from you prior to completion of your property transaction. The Statement of Account will contain full details of all monies expended and received throughout the course of your transaction, including your Estate Agent fees.

Completion

The completion date is the day that you will sell your property. The keys to your property should be deposited with your Estate Agent with strict instructions for them not to release the keys to your Purchaser until such time as they receive notification from your Conveyancer that they may do so. The keys will not be released to your Purchaser until such time as your Conveyancer has received the full purchase price from the Purchaser’s legal representatives. On completion your Conveyancing Team will:

Obtain the purchase monies from the Purchasers legal representatives. Notify the Estate Agents that they may release the keys. Send the title deeds through to the Purchasers legal representatives. Repay any mortgages on the property. Pay the Estate Agents fees on your behalf. Account to you for any balance due.

Post Completion

Work continues for approximately two months post completion whilst your Conveyancers await the discharge documentation from your mortgage lender. Once received this documentation is forwarded onto your Purchasers legal representatives and your Conveyancing Team may proceed to close their file of papers.

 

 

We hope that this article helps explain the sales process for domestic residential properties.

 

Lloyd Davies

Convey Law

22/10/09



By: Mitch Riscoll

About the Author:

Donald Plunkett asked:




Many property owners are only vaguely familiar with a real estate lockbox. They may have remembered a buyer’s agent utilizing something to gain access to properties or they may equate lockbox with some sort of banking practice or the 2000 presidential campaign and the related satire stemming from the extensive use of the word “lockbox” when describing social security and other economic issues. For those who don’t understand, a lockbox is used in real estate to secure a key to the property (it might include multiple keys to gates, security screens, front door, etc.). Once the key is removed, it can be used to open the door and enter the property.

What people do not realize is that the lockbox is an extremely powerful tool in obtaining showings for a property. Exposure to the maximum number of buyers increases one’s chances of selling a home. Think about it, you have a property in Tucson. A buyer who is relocating from New York is on a short weekend trip to look at properties. She needs to see as many properties as possible in a short period of time. Sunday she will return to New York and does not plan on coming back for awhile. Her buyer’s agent wants to allow her to view 10 properties per day, but doesn’t know the exact times they will be at each property, only a range. The agent is also aware that his client may decide in the car that she does not want to view a particular property for whatever reason. It is a dynamic situation and while the agent is comfortable providing a range of times he might be at a particular property, he would like the flexibility to view properties and cancel or move up showings based on his client. As a property owner, having a lockbox can provide an advantage in cases such as these.

There are two types of lockboxes used in real estate: mechanical lockboxes and electronic lockboxes. Mechanical lockboxes can be accessed by anyone that knows the combination or code, whether they are a real estate agent or not. They are frequently used by property management companies and general contractors that have a lot of different types of people that need to obtain access to the property. Electronic lockboxes can be accessed by a member or affiliate (e.g. an appraiser) of the local Realtor association. They are sometimes called Realtor lockboxes or e-lockboxes. There are only 2-3 major manufacturers of the electronic boxes, so they are somewhat expensive, but most people agree that the benefits outweigh the costs.

Besides increasing showings, users of an electronic lockbox also benefit from the fact that the box functions as an advanced tracking device. You can typically find the name, brokerage name, and phone number of any Realtor that has entered the property as well as the time of the showing. You can see if a particular Realtor has returned to the property on multiple occasions. Additionally, if the lockbox is ever lost or stolen, it can be disabled. Finally, most electronic lockboxes come with a feature that allows them only to open between selected hours, such as 8am to 8pm. The main negative surrounding lockboxes are the potential that someone could enter your home in a malicious fashion, such as to steal property or commit a crime. While these incidents are very rare, you should still be mindful of them and decide what is best for you. You also need to weigh the pros and cons of whether you would be better off meeting someone at the property who had similar intentions.

Next time, you list a property for sale, you should strongly consider using a lockbox. They have greatly increased the ability to show properties and feature many other benefits.

Many people completing that home loan process is confusing and frustrating. It is always important for you to understand the process involved in applying for home loan.

Understanding the entire home loan process can take some time, depending on the particular circumstances of the loan. Loan for salaried, self employed or people with poor credit often takes longer, because of the additional documents required. The process can delay by the lenders also.

To give you guideline for the home loan process, here are some steps mentioned. These steps are indicative and may vary from bank to bank.

Prior to applying for home loan, check your credit, otherwise you will surprise by the lenders for rejection of your application. Finding your lender can be first step. For this process, you can take a view of the different loan providers or get a online quotes to confirm your loan eligibility.

With the loan application form, understand that the required documentation for the loan. You have to provide the completed application form and required documentation to your lender. Generally the banks ask for the following documentation-

- Age Proof

- Identity Proof Residential Proof

- Proof of Educational Qualification

- Income Proof

- Bank Statement

- Property Documents



The lender also requires processing fees to proceed loan process. The bank evolutes the application form and invite you for the personal meeting to discuss the issues regarding the loan.



After satisfied by application and interaction, the bank sends the representative to your work place and residence to verify the details provided.



In the next steps, the lender confirm your repayment capacity. This is very vital part in the home loan process.



If the positive, the offer letter is issued to you. It contains sanctioned home loan amount, rate of interest, whether fixed or variable, tenure, repayment mode, etc.



Once the all process overs, you need to submit the original documents to your lender.



At the end, the lender calls you to sign the home loan agreement. Within two or three days, the loan disbursement process will begins.

 



 



By: Habibulla Antule

About the Author:

Gen Wright asked:




Just a couple of years ago, if you are in the business of flipping houses, it would have been near impossible to find great properties that you can buy and sell off quickly. Flipping houses is not a new business model. Many investors and real estate brokers have been involved in flipping houses to make a quick profit. In brief, here is how it works.

In order for this business model to work, you must first find a property that you know you can sell off quickly at a profit. How do you do that? You can do so when you have your key metrics at your finger tips. The key metrics are: market value of the property, the asking price of the property, and the potential selling price of the property. Let’s take a look at each metric, and see how they come together to help you make the right decision.

1) The market value of the house.

Every house has a market value. The market value of a property is the dollar value of similar properties in the area. Not everybody knows the market value of a house. Sometimes, even the homeowners are not aware of the market value of their own homes. That’s because they are not in the real estate industry, and they do not follow property trends. You can easily ascertain the market value of a property by having a qualified valuer value the house. Even without a proper valuation, you should have a good idea of how much the house is worth.

2) Asking price of the property.

When times are good, demand for property is high. Therefore, the asking price during such times may even be higher than the actual valuation. That’s why it is difficult to find great deals while the economy is booming. It is not impossible though. It just takes more time and effort.

However, during a downturn, jobs are lost, and many homeowners may be forced to sell their properties at low prices just to meet their financial obligations. Now is the time to grab as many bargains as you possibly can.

Of course, as you acquire the properties, you should always keep in mind that since it’s the downturn, there may be a lack of buyers. If you really want to flip houses in 2009, then you must be confident of the third point.

3) The potential selling price of the property.

This is what separates the professionals from the amateurs. The professionals already have a ready pool of customers. They are likely to be in the real estate business longer than most people, and they have a wide network of contacts. When they buy a property, it’s very likely that they already know the potential selling price of the property. In other words, they have a few ready buyers in mind.

This helps to minimize risks. The pros are confident that they can flip the houses and make a quick profit. The amateurs may just buy, and hope to sell off quickly. When that doesn’t happen, they get stuck with the property, and run into cash flow problems.

If you are serious about flipping houses, be sure to learn as much as you can about this trade.

valko58 asked:




Building plot(yard) in NIKOLAEVKA Village(Varna)

An owner sells big plot of 3000m2 of regulation land in Nikolaevka village, Varna region. Distance to the coastal city of Varna is 28 km

(18 miles) and to International Airport is 23km(13 miles)-for less than

15 minutes drive. The village of Nikolaevka is known with the dam lakes and the several new investment projects(SPA resort, holiday complex). The yard is located on the exit of the village to Drandar village with a view to the central part. Electricity, water, telephone line, cable ?V is of the border of the plot. The village is big, well developed and it has shops, food stores, medical centre, post office, pub. The neighbors are english family. The ready project for the two separate houses. The opportunity for the separation. PRICE: 30000€ / 22500£

*Legal fees and taxes are NOT included in the price.

An owner sells big plot of 3000m2 of regulation land in Nikolaevka village, Varna region. Distance to the coastal city of Varna is 28 km

(18 miles) and to International Airport is 23km(13 miles)-for less than

15 minutes drive. The village of Nikolaevka is known with the dam lakes and the several new investment projects(SPA resort, holiday complex). The yard is located on the exit of the village to Drandar village with a view to the central part. Electricity, water, telephone line, cable ?V is of the border of the plot. The village is big, well developed and it has shops, food stores, medical centre, post office, pub. The neighbors are english family. The ready project for the two separate houses. The opportunity for the separation. PRICE: 30000€ / 22500£

*Legal fees and taxes are NOT included in the price.