Frequently asked questions

What is the Agreement or Contract?

This is the form of legal agreement which makes the transaction legally binding. A draft contract is prepared by the seller’s conveyancer and sent to the buyer’s conveyancer to be approved. When the draft is approved, one copy is signed by the seller and one copy is signed by the buyer.

How long will it take?

It is impossible to give a definite answer to this, as it depends on many factors – for example, you may be in a chain, or you may need a mortgage. However, for a standard sale with a related purchase with mortgages on both properties, the usual timescale from start (agreeing sale and purchase prices) to finish (moving in) is about 8 weeks. Of course, everyone’s situation is slightly different, so please speak to us about timing at the start if you have any concerns or have any particular dates in mind. We will do our best to achieve your sale or purchase to fit in with your timescale.

What happens next?

Please see the step-by-step guide to Sale, Purchase, Transfer of Equity and (Re)Mortgage.

How much will it cost?

This varies, depending on your situation. However, we will always give you an estimate of the costs before beginning any work on your behalf; this will include both what we will charge you and the costs payable to third parties (Land Registry fees, for example, or Stamp Duty Land Tax). If you do not understand any of the fees in our estimate, please tell us, and we will be happy to discuss these with you.

Who will handle my files?

Your file will be allocated to either Katy Maloney or Caroline Moore when you instruct us – usually you will be dealing with the person you speak to initially, unless you have a particular preference. You will then deal with that person throughout the duration of your sale or purchase (except, of course, in the case of illness or holidays, when the other person will be happy to assist). As we do not have a call centre, you will come straight through to our department – you will not have to speak to anyone who is not familiar with you or your business.

What do all the different words mean?

Please see the Glossary for definitions of the terms you will come across.

Do I need a home information pack (HIP)?

Not at present, as these have been suspended by the government pending legislation to remove the requirement to have a home information pack. Energy Performance Certificates will still be required for all properties.

Do I need an Energy Performance Certificate (EPC)?

Yes – all properties now require an EPC before they are sold or rented, whether or not this is done via an estate agent, a letting agent or privately. Gareth Webb & Co LLP can obtain an EPC on your behalf, or provide details of local companies who can prepare the EPC.

What searches will you carry out against the Property?

This will vary depending on the location of the property and whether you are having a mortgage. Mortgage lenders require us to carry out all ‘usual and necessary’ searches. As standard, we will carry out a Local Authority Search, a Water and Drainage Search, an Environmental Search and a Chancel Check Search. If the property is in an area known for historic mining (for instance Bristol or Wales for coal mining, or Cornwall for tin mining), we will carry out a Coal Search and/or a Ground Stability Search. Other searches may be necessary, or you may ask us to carry out additional searches – please see the Searches page for further information.

Do I need a survey?

You may have heard the phrase ‘caveat emptor’. This means ‘let the buyer beware’, and it is the basic rule of thumb when purchasing a property. It is the buyer’s responsibility to inspect the property and satisfy himself or herself as to its condition. The only things for which a seller can be liable are hidden defects which would have been impossible for a buyer to discover by inspection and which the seller knows about (although this can be difficult to prove). Many defects in properties are found in those parts of it which are not readily seen or inspected by a buyer when viewing the property; indeed, unless the buyer is an expert, many defects will go unnoticed in any case. A surveyor will soon spot areas which are or may be affected by wet rot, dry rot, rising damp, woodworm, settlement or movement of the foundations, and breaching of the cavity walls – these are all things which would not be obvious to most buyers. If you are buying a property with the aid of a mortgage, you may think that your mortgage lender will be carrying out a survey and that you will not need to do this as well. In practice, these mortgage surveys are mere valuations to ensure that the property meets the lender’s criteria and to point out any major problems which could affect the lender’s security. You should therefore satisfy yourself as to the structural condition of a property by carrying out one of the following options:

Instruct a surveyor (who should be a member of the Royal Institute of Chartered Surveyors – RICS) to carry out a full structural survey. A thorough inspection of the property will be carried out, and you will receive a full written report. The surveyor is accountable to you should the report be incorrect.
Instruct a surveyor to carry out a homebuyer’s report. This is less comprehensive and less expensive than a full structural survey. We can provide details of local surveyors if you wish – please ask us for details.

Please bear in mind that your surveyor can only survey those parts of the building which he or she can see. Please also bear in mind that specialist advice may be required for certain aspects of the property (for example, damp-proofing, woodworm treatment or roof defects), and this should be pointed out to you in the surveyor’s report. If this is needed, a specialist company should be asked to carry out an inspection of the affected part of the property (with the seller’s consent for access) and asked to provide an estimate of the likely costs to remedy the defect(s). You may be able to ask the seller to pay all or some of the cost of the works, but if they refuse, then you will need to decide whether you are prepared to bear the cost yourself. You should check that any company carrying out work will provide a guarantee, and whether this guarantee can be backed by insurance in case the company goes into liquidation.

When do I need indemnity insurance and what does it cover?

Indemnity insurance is an insurance policy taken out, usually at the seller’s expense, to provide cover for a ‘defect’ in the title to the property. This can range from a lack of planning or building regulations consent for alterations to the property to inadequate access rights or a breach of covenants contained in the title. The policy is taken out on completion with a limit of cover – this is usually the current value of the property. A one-off premium is paid to take out the policy, although you may be asked to top up the level of cover when you come to sell to ensure that the cover is always the current market value. The policy will provide compensation in the event of loss suffered as a result of the defect against which you are insured. For example, a policy to cover lack of planning/building regulations consent will cover the cost of rebuilding/removing the alterations to the property if the Local Authority require this, and reasonable legal and professional fees. It may also cover a reduction in the value of the property (if you have to remove an extension, for instance, you are reducing the living space of the property and thereby reducing its value). It is important that you do not make any approach to the party who may be able to enforce the defect (this might be the Local Authority or a person named in the title as benefiting from a covenant), as this could invalidate the policy. You are also not permitted to disclose the existence of the policy to any third parties, other than genuine potential buyers and their mortgage lenders. Mortgage lenders are automatically covered by indemnity insurance policies.

What guarantees and warranties can I expect to receive?

The most common guarantees you will receive in relation to a property are for windows or for damp or wood treatment. Window guarantees usually last for 10 years, and damp proofing or wood treatment guarantees are usually for 30 years. Cavity wall insulation guarantees are also usually for 30 years. You should ensure that you receive the original guarantee document on completion, as this will be needed if you have to make a claim. You may have to notify the company that you are the new owner of the property, and a fee may be payable. We will point this out to you, but it will be up to you to deal with this following completion unless you specifically ask us to do it for you.

What if my property is new?

If the property is new (built within the last 10 years) a new home guarantee will usually be provided. The most common guarantees are NHBC and Zurich, which are similar. The NHBC’s Buildmark Scheme offers protection in the form of an insurance policy against structural defects in the property which may arise during the first 10 years. The scheme is in two parts. In the first part, the builder agrees that the new dwelling will be constructed in a good and workmanlike manner and in line with the requirements of the NHBC. The builder also agrees to put right any defects in the property (notified to the builder in writing) which occur during the first two years (known as the initial guarantee period), and which occur as a result of the builder’s failure to comply with the NHBC requirements. In the second part, the NHBC give separate warranties (insurance) which will compensate the buyer against loss suffered as a result of:

(a) the builder becoming insolvent before the dwelling is finished (limited to 10 per cent of the contract sum or £10,000, whichever is the greater).
(b) the builder failing to fulfil its own warranty to correct defects arising in the initial guarantee period.
(c) any repair works to the property costing more than £500 which occur during the eight years following the initial guarantee period. This eight-year period is known as the structural guarantee period. Cover includes double or multiple glazing and the costs of clearing up contamination as a result of action taken by a local authority or the Environment Agency.

The cover will begin from the date of completion of the purchase; it is activated by the buyer’s conveyancer completing the Acceptance Form and returning it to the NHBC. Once the NHBC have completed a final inspection to their satisfaction, a notice of protection of cover for the full 10-year period will be issued to the conveyancer who submitted the application. This notice is issued in duplicate: one copy is placed with the title deeds and sent to the mortgage company if they require this, and the other copy is placed with the insurance policy booklet and handed, or sent, to the buyer. Subsequent owners are also covered for the full 10-year period, so the policy documents should be kept safe.

What happens at exchange of contracts?

Exchange of contracts takes place only when we are satisfied that everything has been fully explained and the title is suitable for you and your mortgage lender. If you are selling, exchange will take place once we have replied to all enquiries raised by your buyer’s conveyancer. The buyer will need to provide a deposit (usually 10% of the purchase price) as cleared funds, and both the seller and buyer need to have signed and returned their contracts to their conveyancer. A completion date to suit all parties will be agreed before exchanging contracts. We will always get your authority to exchange contracts before doing so, as the agreement to sell or buy becomes legally binding upon you once contracts are exchanged. Exchange of contracts follows a formula prescribed by the Law Society, and it takes place by telephone. Each person’s conveyancer holds a signed contract, and the buyer’s conveyancer holds a deposit. Both conveyancers agree that the contracts they hold are identical, and any final amendments are agreed. The completion date is inserted, and the contract is dated with the date on which the conversation takes place. Both conveyancers agree a time of exchange; this is noted on the contract with their names, and it is at this point that exchange of contracts is deemed to have taken place. Each conveyancer then sends his or her client’s signed contract to the other – this is the physical exchange. The contract becomes legally binding at the time the conveyancers agree by telephone that contracts are exchanged. If either party withdraws from this point onwards, there will be penalties payable to the other party.

What happens on completion?

Completion is the day you gain possession of the property or the day you give this up, depending on whether you are selling or buying. If you are selling a property, you must vacate the property (and remove all your belongings and dispose of all your rubbish) by the time stated in the contract – this is usually 2pm, but sometimes earlier. If you are buying a property, the seller’s conveyancer must receive the balance of the completion money by the time stated in the contract. Upon receipt of funds, the seller’s conveyancer will release the keys to the estate agent, and the buyer can collect them and move in. If mortgage money is received early on the day of completion (or, as is more usual, on the day before completion) it can happen that legal completion takes place much earlier than the contract time. If this is the case, the buyer should be aware that the seller may not have finished moving out; the buyer should wait until the contract time to start moving in, unless he or she has been advised that the property has been vacated. We will telephone you as soon as legal completion has taken place to confirm that everything has gone through as planned. If you are concerned about anything on the day of completion please telephone us; however, we would ask that you wait until at least 11am so as to allow enough time for money to move between banks.

Call our Conveyancing team on 0845 1300391 or fill out our online form for you free quotation