Out of office

Sorry been quiet recently with no new blog content. I’m officially now on holiday for a few weeks. We will be enjoying a staycation in England on the south coast.

Hope you all have a great few weeks and watch out for new content soon.

Exchange of Contracts

I mentioned in a previous blog that exchange of contracts is the point in a conveyancing transaction where it becomes legally binding. But what exactly does that mean?

I will go into more detail on the process up to exchange of contracts in the future, but what exactly is this magical point of the transaction that everyone wants to reach?

Exchange of contracts means it is legally binding. Up until that point it isn’t. That means simply that until that moment anyone can withdraw for any reason without penalty and without being in breach of contract. This is one of the issues with conveyancing in England and Wales that they government are constantly trying to improve.

So why might people withdraw? There are so many reasons. When you agree to buy a house or sell your own, there are many external factors that might mean you can’t go ahead even if you want to.

You might want to buy the house, but haven’t sold your own, or someone else in the chain may not be ready to go (chain incomplete). You may not be able to get the mortgage you want and afford the price you offered-and a post on mortgages will go into more detail on that.

Sometimes legal issues come up in the conveyancing process that lead people to change their mind, I once had someone withdraw because the property was at high risk of flooding, and I have had various issues relating to defective leases and problems with the title deeds. There are always things that can and do go wrong.

But there is another side, those that withdraw right at the last minute to try and hold the other party to ransom. To either reduce or increase the price. This is known as Gazumping or Gazundering depending if you are the Buyer or Seller.

Let’s imagine you are at an advanced stage in the transaction buying and selling. You’ve spent money on a survey, valuation, mortgage application, searches and have organised a date to move. Everything seems to be done but you haven’t exchanged. Then your Seller pulls out. They put the property back on the market and put the price up. They insist on an extra £10,000 or more to continue selling to you. What do you do?

Or your buyer withdraws and says they can no longer afford to buy for that price and put in a lower revised offer. Often blaming market conditions and the delay in the conveyancing process.

These situations can cause entire chains to collapse with no repercussions for the one causing the problem. But sadly some people actually do pay. Because the alternative of losing money time and effort already paid/made is worth it.

Luckily once the exchange of contracts has taken place this can’t happen. It doesn’t mean nothing can go wrong at this point however-just that there are legal implications if they do.

More on what can go wrong after exchange in another blog post.

Thanks for reading.

Curtilage

I’ve been watching a few property shows on tv during lockdown and I was surprised how many times this word was used considering most people probably don’t really understand it. Possibly the TV presenter doesn’t either!

So I have put together a very short quick highlight on my Instagram page if you want to take a look. @UKPropertyLaw

If you ever see any words used by a lawyer that you don’t understand you should always ask. A good lawyer should explain everything in plain English for you and encourage you to ask questions.

Thanks for reading another post coming soon!

Conveyancing Process -Part 2.

In part one we looked at some of the jargon used during the early part of a transaction and discussed how to choose a Conveyancer. We will now start to look at the legal process in more detail.

I just want to mention Energy Performance Certificates at this point (EPC’s). A full Instagram post to look at EPC’s in more detail has been added to my highlights. @ukpropertylaw is my Instagram if you are not following me already.

EPCs can be arranged for you by your agent or alternatively you can find a list of approved registered assessors online. Get one at the time you put your house up for sale if there isn’t one already in place. They last for 10 years so it might be there’s one you can use from a previous sale. If you don’t have a copy of the EPC you can check the online EPC register to download a copy.

So what’s next? Our chain is complete and everyone is starting the conveyancing process.

If you are getting a mortgage now is the time to formally apply. I’ll do a future post about mortgages and decisions in principle and how they work in future. For now speak to your mortgage advisor or broker.

This point is when the mortgage company would carry out a valuation. Valuations and surveys done at this point are a vital part of the conveyancing process. Again this is worthy of a separate post so more details on that in a future blog. Once the valuation is done the bank or building society can get the mortgage offer in place.

The next stage is for the Sellers Solicitor to get the title deeds (normally just a download from the Land Registry) and prepare a Contract. The Seller also needs to fill in some forms if they haven’t done this already. These property forms include a list of items included in the sale, such as carpets, curtains and white goods (appliances). The second common form is a list of questions about the property for the seller to answer. It includes questions about boundaries, planning, building works and much more. Again a post with further details will be added in due course.

I realise this blog isn’t giving much detail at the moment, but conveyancing is a huge area for me to discuss. I decided to do this first as so many of my followers have links to residential property. Please follow me on Instagram as I will add further links and content. There is so much more to add.

Let’s assume then that the Seller has filled in the property forms, instructed a Solicitor or Conveyancer, and provided their ID. The Solicitor will download the ‘title deeds’ and use those to prepare a Contract.

The contract will be received by the Solicitor acting for the Buyer who will then submit searches on the property. More on searches in a future blog!

As a quick summary; the searches usually include a Local Authority Search which checks the Councils records on planning and building regulations as well as seeing if roads and paths are publicly owned and maintained. A drainage and water search should confirm if the property is connected to a public sewer and water supply. An Environmental search will cover issues including flooding and potential ground contamination. In some areas other searches may be required.

The next step is for the Solicitor for the Buyer to review the contract and property forms, and scrutinise the deeds to look for any legal issues or discrepancies they may need to ask further questions about or as for further evidence to support. If the searches are back at this stage the results will be cross checked. Following this investigation the solicitor is likely to raise questions known as ENQUIRIES. These enquiries should be legal in nature and will be sent to the Sellers’ Solicitor to answer. Depending on the questions the Solicitor may need to go back to the Seller and ask for further information or evidence. The process of dealing with these pre-contract enquiries can take some weeks.

Thanks for reading please keep a look out for future blog posts and if you have any questions please don’t hesitate to get in touch.

Conveyancing Process -Part One. Finding a Conveyancer and some initial jargon.

I’ve already explained that conveyancing is the legal process of buying and selling in a previous blog post. So how does it work and what happens?

There are some great resources out there and videos on YouTube but most of them simplify the process so much that it’s easy to assume the process is straight forward and fairly quick which is not always the case.

Let’s start at the beginning with an example of someone buying and selling. The first step is of course the biggest, actually deciding to move and hunting for your dream home. Estate Agents will help you sell your home, accept an offer, and place an offer on what you want to buy. Before this if you need a mortgage it’s always a good idea to speak to a mortgage advisor/broker to see what you can afford.

You might hear a few jargon terms used at this stage;

A first time buyer is exactly that. Someone who has never purchased a house before. This can be good as they don’t have a house to sell therefore they can move more quickly to buy yours. Always make sure they are in a good position to get a mortgage before accepting their offer. Your agent can help with this.

A cash buyer will be someone who doesn’t need a mortgage. This however does not mean they have the cash in the bank ready to go. The money may be tied up in an investment, business, or even in another property they need to sell. The Agent will help clarify the position of any buyer who puts in an offer to help you make an informed decision.

Chain free is someone who doesn’t have a property to sell (or buy). This again doesn’t mean they can move straight away they may still require a mortgage but you have the advantage of not waiting for them to find their own buyer for their property before you can all start the process.

A chain is simply where properties and their owners are linked, and one person can’t afford to buy a new house until they have sold their own. Very few people can have 2 mortgages or will want to be homeless temporarily so therefore all people and property in your ‘chain’ will normally move on the same day.

Be aware of people or agents who say someone is ‘ready to move’. This has no legal meaning and is often misunderstood.

In property transactions in England and Wales the deal isn’t legally binding until the point known as EXCHANGE OF CONTRACTS. Until this point anyone can withdraw for any reason. Please try not to make any arrangements or rely on dates until this point. Your Solicitor will advise you further. More on stresses and conveyancing problems in a future blog.

Once everyone in the chain has a buyer in place and the prices are all agreed, you have a ‘complete chain’. Now the legal work really starts and it’s common to take up to 14 weeks from this point to exchange of contracts, and perhaps another week or two until you move in.

The moving day is when the money changes hands, keys are passed across to the buyer and people actually move out (normally around lunchtime). This is known as the COMPLETION DATE.

When you decide to instruct a Solicitor there are a few things to look out for. Shop around, in the same way you might for a new car, and don’t shop on price. Look at reviews online and check the person dealing with the matter is qualified to do so. Word of mouth recommendations from friends and family can also be useful. Also make sure your expectations are clear and talk to your Solicitor or Conveyancer about what you expect. If you have a deadline please be upfront and tell them straight away, especially if you are buying a brand new property from a developer (usually called ‘newbuild’) as they often have strict deadlines as part of the offer they accepted. More on newbuild in another blog.

Most complaints about law firms, especially to do with moving home, relate to communication. Be realistic and treat your conveyancer with respect and they should do the same. Also look at their working hours, for example is it a smaller firm that opens 9-5 Mon-Fri and closes for lunch? Does that suit you? Would you rather have a firm open Saturday morning or evenings to take calls, or would you prefer someone local so you can make an appointment to talk face to face.

Whatever you expect and want, be clear up front and talk. Your Solicitor will deal with lots of different clients with different needs and requirements. They will try hard to get it right for everyone but please do tell them and keep communication going throughout your transaction. As a lawyer being kept informed by clients is really important.

I once had a client fail to tell me they had booked a month-long holiday, were leaving in 2 days, and were expecting to sign documents before they went. I got 2 hours notice of something they had booked months before. Whether it’s email, phone, text or using an app just keep up the communication and it should go both ways.

Many conveyancing firms now offer either an app or an online tracker for your move. These can be useful and some are also able to be used as a messaging service or even allow you to upload documents or fill in forms online. If this is something you want, ensure your Solicitor offers if. If you aren’t concerned or like a more traditional approach that’s fine too.

I can’t possibly fit the whole process into one post so future posts to follow with more jargon and info.

If you have any questions please don’t hesitate to get in touch.

Common Latin jargon

I’ve recently updated my Instagram story and added a highlight onto my page about some common Latin terms still used.

These Latin words and phrases are commonly used still by Solicitors, the Land Registry and may also appear in legal deeds and documents.

I’ve given a brief summary of some and how they relate to property law. Many more Latin terms are still used in all aspects of our lives and law in particular.

If you ever see a term, Latin or otherwise, in a legal document you are asked to sign and you do not understand its’ meaning or context then you should always get legal advice.

What is Conveyancing

Conveyancing is simply the legal process involved in buying or selling property. A conveyancing department usually deals with residential property for individuals buying their own home.

Conveyancing as a term also usually nowadays applies to other property transactions (including gifts, granting rights, etc) including agricultural and commercial, but most commonly the term is used for buying and selling and usually residential properties.

The word, like a lot of legal words, has its historical origins yet we still use it today. A legal document, called a Conveyance, would be signed by the Buyer and Seller (previously known as Purchaser and Vendor) to convey, or confirm the transfer, of property from one owner to the next.

So a Conveyance was the name for the document that conveyed the property and therefore the process became known as Conveyancing. More recently those who dealt with the Conveyancing process became known as Conveyancers- especially when legal services were opened up so that Solicitors were no longer the only legal professionals that were legally recognised.

The Council for Licensed Conveyancers (CLC) is an alternative regulation authority to the SRA and those qualified with the CLC often refer to themselves as Property Lawyers or Conveyancers. The job title Conveyancer however is not legally defined and therefore anyone, even if they are unqualified or have little experience, can be called a Conveyancer. You can always check qualifications and experience online with the CLC, SRA or CILEX. More in CILEX in a future post.

If you want to buy a house you will need a Conveyancer, Property Lawyer, or Solicitor to do the legal work (the conveyancing) for you.

Conveyancing is an area where introductory roles, junior assistant roles and admin support, are often more available and usually offer great on the job training. Many big firms have their own training departments specifically for this area.

If you are looking for a job at a law firm then something in conveyancing might be a good place to start.

I’ll be publishing a further blog on the conveyancing process and how it works in the future, aimed at those who don’t know the process and would like to know more (agents, brokers, first time buyers) but in the meantime if you have any questions or comments please get in touch through the contact page of the blog or DM me on Instagram @UKPropertyLaw

What exactly is Real Estate?

According to Wikipedia Real Estate is property, consisting of land and the buildings on it. Real Estate is often considered an American term, in English common law it is known as Real Property.

So why the weird names I hear you ask? Property can be anything that is in your possession, the word has multiple meanings. My personal property includes my phone, laptop, and keys. Real Property, also known as Real Estate, or Immovable Property, is what most of us probably think about when I mention property law – houses, land and buildings.

The word Estate also has multiple meanings in law. If you have ever dealt with financial affairs of a loved one after they have died you will probably have talked about their personal Estate. Estate Accounts are financial accounts summarising the deceased’s property, cash and other finances. I’m not going into personal estates after death here, this is just to put that words into context. Next, you have country estates, stately homes and the like, which are often also referred to as Estates. (I’m not even going to mention Estate Agents here and how the name came about!)

If you have studied law you will know this already of course. Many of you may be new to law, or a legal job, and some of these terms can be confusing.

So if you own a house, flat or apartment that is your Real Property. Real Property is land, and buildings and other things that are on it, including crops, mines, machinery, wells, roads, ponds, and canals. Real Property and Real Estate are two different terms for the same thing.

If you are looking at jobs in the UK you will find that as the law of property is so wide, most firms split it into different departments and these may have different names. If you are looking for a job, you may find mention of a property or housing department, real estate team, plot sales (this team act for developers selling brand new houses and flats), conveyancing department (more on conveyancing another time) and many more. Looking for these key words when you are job hunting will help you find the area you want to be in.

Within firms there are also other jobs that have a title which doesn’t indicate which department or area of law the role is in – for example if the role just says Paralegal. Please see my previous blog post for more information on junior job roles if you are looking to join a firm with little or no experience and are not already qualified.

Within Real Estate you will also find that most firms split into 2 main sections, commercial real estate and residential. Residential property departments deal with dwellings and residential land. A dwelling has multiple meanings in law but for our purposes here it is somewhere that people live. If you are dealing with a flat, house, apartment with or without gardens and grounds that usually would be considered residential and dealt with by that department. The buying and selling of residential property is known as Conveyancing. Commercial property departments usually encompass anything that isn’t residential. This may include factories, shops, schools, shopping centres, sports facilities and much more.

The line between commercial and residential property can be a blurry one, and not all firms have different departments. Some firms have very specific smaller departments that deal with a very precise area of law and others don’t – there is no right and wrong here as long as the Solicitor doing the legal work knows what they are doing their job title and department name are not an issue.

Social housing, agricultural land, investors of buy to let property, companies investing in residential real estate for rental, those buying Freehold of Leasehold blocks, and Landlords of HMO properties are all examples of work where you really need a specialist and not just any Solicitor who has helped a few friends buy a house. More on some of these terms, what they mean, and why they are important in a future blog.

Thanks for reading, please don’t forget to follow me on Instagram.

Looking at working in property law?

I know that many of you will be studying law at University, but there are other routes to working in a law firm, and specifically in property law. This blog post is aimed at those with an interest in working within the legal sector.

Future posts will concentrate on information more relevant to agents, investors and property paralegals.

There are many different jobs within a large law firm, and many people may find themselves working within a Solicitors office that have never studied law. Accounts, Finance, Human Resources, Compliance, Admin, Reception, Post room, IT, IS, Learning and Development, Hospitality, Facilities, Estates, and many other departments all exist.

But if property law is something you are interested in, and let’s face it you wouldn’t be reading this if it didn’t interest you, then how exactly do you get into it?

Luckily there are lots of options and you don’t have to have a law degree, or a degree at all. Apprenticeships (now government funded) are a great way to get into law, and I will be sharing more information on apprenticeships in future posts.

It is worth remembering that even if you don’t have a law degree you can still work in property law. There are admin and support roles available, and many junior or assistant paralegal positions do not require previous legal experience or qualifications. From there you can build up experience and if you decide law is for you, then the option to become a Solicitor is not limited to those with a degree in law.

I will not be concentrating on hints and tips for how to get your dream job, as there are so many websites and blogs doing exactly that. I will instead be looking to share useful information on the sector to increase your commercial awareness and some practical ideas in future posts.

If you are thinking about getting into law, then go for it. There is nothing to hold you back, and who knows you might just like it.

Don’t forget to follow me on Instagram. Thanks for reading.

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