Page 16 - AvRillo_A4ConvGuideBook July2017
P. 16

16   Your move fast guide to conveyancing by AVRillo.

       JARGON BUSTER | DIFFICULT WORDS EXPLAINED!


       ADDITIONAL ENQUIRIES                                     marketed for sale. The Energy Performance Certificate is similar
                                                                to the certificates now provided with domestic appliances such
       These are only raised by the buyer’s conveyancer if you, as the   as refrigerators and washing machines. Its purpose is to record
       seller, have missing information or documentation that the   how energy-efficient a property is as a building. The certificate
       buyer’s conveyancer would have expected you to produce on   will provide a rating of the property from A to G, where A is very
       your sale. The buyer will not purchase your property without   efficient and G is very inefficient.
       these, especially where they are buying with a mortgage. If your
       solicitor did their job properly when you purchased they will   ExCHANGE OF CONTRACTS
       have obtained these and send them to you. These can include,   This is when a legally binding contract is made. Once your
       for example, missing planning consent, building regulations,   Conveyancer exchanges contracts your transaction is safe. It is
       FENSA, insurance policies for lack of these or breach of   also at this point that you fix your move in date-the completion
       other title defects such as lack of access and easements. Not   date. This is usually mutually agreed between seller and buyer
       having these may reduce your ability to sell or even devalue   or with the help of their estate agent. Do not make any firm
       your property. If you can’t supply these documents, ask your   commitments such as giving notice on a job, arranging removals
       conveyancer if indemnity insurance is available to cover those   or arranging to go away without exchanging first as until then
       defects to enable your buyer to proceed.                 NOTHING is binding – either party can walk away from the
                                                                transaction. Each bears their own costs.
       CONTRACT / AGREEMENT
       This is the agreement between seller and the buyer and sets out   FIxTURES, FITTINGS AND CONTENTS FORM
       the terms of what has been agreed such as the property, the   This is a list of the items at the property which the seller must
       price and the names of the parties. It also deals with the process   complete stating if they are either included or excluded from the
       if something goes wrong. It is no longer necessary for the parties   agreed price. This form is completed at an early stage by the seller
       to meet to sign the same contract. The seller’s solicitor prepares   and sent to the buyer, so that both parties understand what is
       two copies of the same contract with each party signing their   included in the selling price.
       own copy of the document and at exchange, the contracts are
       literally exchanged between the solicitors at which point legally   FREEHOLD
       binding both buyer and seller.                           This describes how the land is owned. Land is either freehold
                                                                (usually houses) or leasehold (usually flats). Essentially, with
       CONVEYANCER OR SOLICITOR, WHAT IS THE DIFFERENCE.
                                                                leasehold you hold the land for a term of years. This could be
       None when it comes to the work. Both do the same things   99 years, 125 years or even 999 years. With freehold you own
       when it comes to conveyancing. They train in different ways   the land indefinitely with no limitation of years.
       and they have different governing bodies.
                                                                INDEMNITY INSURANCE POLICY
       DEEDS                                                    Is a potential solution to allow a seller to sell. When buying the
       Title Deeds are the documents which evidence that the seller   buyer solicitors may spot defects in the title of the property,
       actually owns their property. Further it sets out any rights or   such as breach of covenants, lack of easements or missing
       obligations that affect the property, including ‘easements,   planning or building regulations for example. In such cases,
       covenants, restrictions and charges.’ The most basic of the   in order for the buyer to proceed to purchase, they will either
       deeds will be the official copy of the register and a title plan of   need for the defect to be fixed, or in some cases, they may
       the register. Other deeds may be referred to within the register   accept indemnity insurance policy to cover the loss for that
       and these will have to be obtained by your solicitor. As a seller   risk. It is not a cure but an insurance policy to cover financial
       you are responsible for asking your solicitor to purchase these   loss. This has now become acceptable in most conveyancing
       in order for them to issue a contract for the buyer solicitors as   transactions as a way to move. The cost can vary from less
       the buyer solicitors cannot proceed without these.       than a £100 pounds to up to £1000 for more problematic
                                                                defects. The higher the risk the more the insurance company
       DEPOSIT                                                  will charge for covering that risk. Your solicitor will be able to
                                                                help you obtain this quote for you.
       On exchange of contracts the seller usually insists on receiving
       from the buyer a 10% deposit of the purchase price. However   LAND REGISTRY
       as many people are not contributing as much as 10% to the   This is the Central Government organisation in England and
       purchase, reduced deposits are often agreed down the chain. If   Wales which retains records of who owns every piece of land,
       that happens then in the event of the buyer failing to complete   and under what conditions. This was set up in 1925 to simplify the
       the purchase through no fault of the seller, the contract will
       provide that you still make the deposit up to the full 10%. You   conveyancing process and register all land. Whilst the majority of
       may also have to pay compensation to the seller if the seller   land is now registered to date not all land in England and Wales
       loses out through your failure to complete.              is registered today and this is partly due to the fact that land can
                                                                only be registered following certain “triggering events”. The Land
       ENERGY PERFORMANCE CERTIFICATE                           Registry has their own website which provides useful information.

       Since 1st June 2007, each home has to be inspected and an
       Energy Performance Certificate prepared, before a property is
   11   12   13   14   15   16   17   18   19   20