Page 16 - AvRillo_A4ConvGuideBook July2017

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