“Ask the Expert”
Get all your legal questions answered by our expert Solicitor Emma Selfridge, Head of Conveyancing at Bowden Jones Solicitors.
Q: Do I really need to have searches on my purchase?
A: Where you are taking out a mortgage you must always have searches as your lender is using the Property as its security and will only lend if the search results are clear. If you are a cash buyer then you can proceed without the local, drainage, environmental and coal searches (if mining area). Tis is at your risk. It is not advisable to do this as the searches can reveal repayable
contamination.
issues such as financial charges, repair grants or potential land A
property could be
contaminated land (i.e. environmentally unsafe), if it is built on an old petrol station, for example.. Te petrol and diesel in the soil can make the land and Property dangerous to a person’s health. If there are entries revealed in the searches, it is the land owner’s responsibility to repay or deal with them, as they are attached to the Property and not the person that owned it when the search entry was created. Terefore, if entries
are discovered aſter completion it becomes your issue to deal with as the land-owner/seller has no liability.
Q: What does exchange and completion mean?
A: Exchange of contracts is the point at which you are legally bound to buy or sell the Property. On exchange a non-refundable deposit of (usually) 10% of the purchase price will be paid by the buyer to the seller. If you are both buying and selling, the deposit from your sale is used as the deposit on your purchase. Before exchange of contracts you can walk away and will suffer no losses other than any abortive legal fees, search or survey costs, for example. However, you would not be required to compensate your buyer/seller for not completing. Either party can withdraw before exchange. Aſter exchange occurs, and if you do not complete, the deposit paid is forfeit, you must pay penalty interest and your seller/buyer may seek to recover their losses. Prior to the point of exchange there are various
stages such as dealing with enquiries and searches and getting contract terms approved. Both the seller and buyer will have signed their own copy of the contract and ‘the parties’ solicitors will liaise and agree upon a time when exchange can occur. Completion is the point at which the monies must be paid from buyer to seller and the seller must release the keys and give vacant possession to the buyer.
Please note that the above is basic advice. Should you require additional information then please call our team on 02920 484550. If you have any questions that you would like answered within the next edition please email
enquiries@bowdenjones.co.uk.
6 - Friday 3rd February 2017 – Cardiff & South Wales Advertiser
www.cardiffandsouthwalesadvertiser.com
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