“it's surprising how often our clients know little of what happens when they enter into a property transaction.
”
common pitfalls...
When buying and selling Jersey property by PHILIP LIVINGSTONE, PARTNER, LWR LAW
and divorce, the buying or selling of property is the next most momentous life event. If this is true (and it may well be in Jersey where the cost of property is so high), it's surprising how often our clients know little of what happens when they enter into a property transaction. With that in mind, here is a quick guide to some of the issues which we as lawyers see time and again and which can impact upon a proposed transaction.
I
BUYING • Do your sums Your first step should be to establish how much your bank will in principle lend you. Armed with that figure, and the knowledge of the cash sum at your disposal by way of 'deposit', you should be able to establish how much you will have to meet a purchase cost, always factoring in legal costs and stamp duty (both on the purchase price and on the loan registered as
t is said that after family bereavements, births, marriage
a charge against the property). Now you know what price range to look for when scouring the estate agents' websites or windows
• Get your finance sorted out You have now had your offer for your dream home accepted and the deal is set to complete in about a month's time. This is not long! The most common cause of a delay in a purchase is the buyer not having their finance ready.
You must make sure you have signed the bank's offer (facility) letter so that they can then instruct a surveyor to attend at the property and carry out a valuation. If the valuation comes back at the level required by the bank then all well and good. If not, then you will have to consider whether you can re-negotiate the price, find the extra finance from elsewhere, or decide you cannot proceed. If all is well, the bank will instruct their lawyers to prepare loan documentation to send to your
own lawyers. Your lawyers will need to meet you and go through the loan documents very carefully before you sign them. Your lawyers will produce a report on title for the bank's lawyers. The documents can then be returned to the bank's lawyers, who in turn will be able to advise the bank as to whether it is now safe to lend the money.
• Know what your lawyer is doing Your lawyer should explain to you what is involved in checking title to a property, and they should always, where possible, visit the property at least a week before the intended completion date. By that time they should have sent you a draft of the contract (these days they are written in English and therefore much easier for most people to follow than the old French version). Once your lawyer has been on site, you should be notified straight away as to the outcome, ideally with photographs and/or a site plan. Any issues arising should be
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20/20 Habitat - The Home
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