Buying a home | Series one: Deciding and signing
So, you have found the house you want – congratulations! For many of us, purchasing a home is one of the most significant transactions we ever participate in, and whilst exciting, the process of buying and transferring property between owners can be an arduous and complicated one.
First, you should know that planning is essential. The more prepared you are, the less likely you are to encounter unexpected issues without a way to overcome them or escape the financial commitment.
In this 3-part series, you will see how this process unfolds and how to navigate it with the help of a conveyancing service.
Deciding to buy
You have inspected the house and you love it– what now? First comes the contract and the inspections (collected and summarised in the Form 1).
Contract of sale
Signing the Contract of Sale is a huge leap in the process of purchasing a property. Engaging a solicitor to draft, review and advise you on the contents of the contract for sale is of paramount importance.
Once you have signed, you are legally bound to purchase the property, with the added benefit of a two-day “cooling-off” period. It is, therefore, necessary that each section of the contract is carefully considered and understood so that you are familiar with the rights and obligations that you will be committing to.
While contracts are generally standard in form, parties can add special conditions before signing. A special condition may confer additional rights or protections to the buyer, such as rendering the contract subject to work to be completed or finance approval.
These conditions are added before signing the contract, but there can be alterations or re-negotiation of a contract during the cooling-off period or while the contract is conditional.
The Form 1
While handling the contract of sale, you will also receive and sign the Form 1. This document outlines details concerning the property, specifically any encumbrances or anomalies that may interfere with ownership or enjoyment of the property such as leases, mortgages, restrictive covenants, easements and more.
Once the Contract for Sale and the Form 1 are signed, the cooling-off period begins.
The Cooling-Off Period
The cooling-off period is usually a 48-hour period in which you, the purchaser, can legally terminate the contract without any consequences. It is possible to waive your cooling-off rights to accelerate the process. Remember though – if you are successful in a bid at an auction you will be bound by the contract, and you will NOT have a cooling-off period.
So when does money start changing hands? Well, that’s in Part 2…
CPC Lawyers can represent both buyers and sellers, please contact us for more information or to arrange a consultation.
Phone: 08 7325 0219