Step-by-Step Guide to Moving House
'A Moving Experience'

STAGE 1

1. NEGOTIATING
Let us assume you have found the house you wish to buy. You will now be negotiating terms for the purchase and unless you are a first-time buyer you will also negotiate terms for the sale of your present home.

The important thing to remember if you put anything in writing is to include the phrase 'Subject to Contract'.

2. DRAFT CONTRACT
Now the Seller's Solicitor prepares a Contract for the Buyer's Solicitor. For this purpose he will need to obtain the Title Deeds to the property which are normally held by the Seller's Building Society, Insurance Company or Bank as security against the existing Mortgage of the Seller and will need the account details in order to do this. The lender will charge the owner a fee for the release of the deeds which is usually charged to the Mortgage account.

The Seller's Solicitor will also need the Seller to complete and return various information forms relating to the property.

3. CONTRACT
Once the Deeds and any other relevant documents have been received and the contract has been prepared the Seller's Solicitor will send two copies of the Contract and the other documents to the Buyer's Solicitor for approval.

If the Contract is approved, one copy is kept and the other is returned to the Seller's Solicitor for signature by the Seller.

Once agreement has been reached on all the terms of the contract, including price and completion date, the two Contracts will be exchanged and then the transaction becomes legally binding. Eah person then holds an identical contract signed by the other and can enfoce that against them.

The Exchange of Contracts procedure is dealt with in Stage 3 of this booklet.

STAGE 2

4. SEARCHES
Meanwhile, the Buyer's Solicitor carries out any necessary Searches and Enquiries. These are enquiry forms that are sent to the Local Authority and other bodies and can take from 2 to 8 weeks to return with all the appropriate information.

This information will only relate to the specific property being purchased.

If you are worried about any particular matter such as possible developments, drains, new roads, boundaries, rights of way, restrictions, schools or even the risk of flooding, please let us know as soon as possible. We can then make additional enquiries where these are needed.

5. FIXTURES AND FITTINGS
These are anything that is fixed permanently to the house or land, such as baths and built-in cupboards, and are normally sold as part of the property. However, the Seller may wish to remove certain items. The Seller and Purchaser should both know exactly what items are being included in the sale before Contracts are exchanged and the Seller usually completes a Fixtures, Fittings and Contents Form which will be incorporated into the Contract.

6. SURVEYS
Do not rely on the Building Society Valuation. The Building Society only inspects the property to see if the valuation is justified before the loan (mortgage) is granted. This is limited to ensuring that they consider the property to be worth the amount that they are lending, which is normally somewhat less than the purchase price. This is not the same as a full structural survey.

Legally the Seller is not bound to give any guarantees as to the condition of the property, and the Buyer purchases it as seen.

We recommend a Structural Survey or a House Buyers Report by a qualified Surveyor. This costs money but if there is a defect in the property it may be possible to negotiate a lower price with the Seller in order to cover the cost of any repair work.

ENVIRONMENTAL REPORTS
Homebuyers are often unaware that although the house they purchase may be in good condition, the land it is built on may not be. This is something the usual searches will not uncover.

We provide free of charge an environmental report with a brief summary of some of the matters that could affect properties with the same postcode as the property you hope to buy. We can arrange a more comprehensive environmental search if you wish at a cost of about £40.00.

WOODWORM, ROT AND DAMP
In older properties, a specialist survey is sometimes advisable. Most firms that specialise in these problems will conduct a survey free, or for a nominal charge.

STAGE 3

7. THE MORTGAGE
By now you will have received written confirmation of your Mortgage Offer from the Building Society, Bank or Insurance Company. If for any reason you have not arranged a Mortgage, we can help you to do so. But please let us know at the earliest opportunity.

8. EXCHANGE OF CONTRACTS
Until now nothing is legally binding. You can both still change your mind and the Seller can still sell his house to somebody else. This usually happens for one of two reasons.

He may have received a higher offer from another purchaser, in which case you have been 'Gazumped'. Alternatively, he may have issued more than one contract and is waiting to see who will exchange first. This is called a 'Contract Race'.

You may also be involved in a 'Chain' in which nobody wants to exchange contracts on the house they are buying before they exchange on the one they are selling. This is usually where proceedings become delayed. The truth is that everyone must wait until the last person in the chain is ready to proceed.

Here is where we can ease the pain for you by making sure that this tricky part goes as smoothly as possible. Both parties are legally bound only when the Contracts are formally exchanged and a Completion Date is agreed. As soon as that happens we will let you know and confirm the Completion Date.

9. THE DEPOSIT
When the Contracts are exchanged the deposit, which is usually 10% of the selling price, is payable to the Seller's Solicitor.

10. LEASES
Most of the procedures for house-buying also apply to flats. There is, however, one important difference. With a flat you will be buying a lease.

Leases tend to be very complicated and cover such things as pets, maintenance, cleaning, repairs, ground rents, gardens, roofs, car parking, foundations, insurances, neighbours and service charges. It is sometimes the case that leases have been badly drawn and are defective in which case we may have to advise you and your prospective lender against proceding with the transaction.

We will of course discuss all the points set out in the lease during the transaction.

STAGE 4

11. COMPLETION
Generally, Completion takes place between 1 and 4 weeks after Exchange of Contracts.

What happens, in simple terms, is that the Buyer's Solicitor hands over the money and the Seller's Solicitor hands over the keys and the legal documents that transfer the TITLE to the land. The Buyer can then move in.

In fact, it is slightly more complex than that. The Seller's Solicitor prepares and sends a Financial Statement to the Buyer's Solicitor. The Buyer's Solicitor arranges for the Mortgage Advance cheque to be obtained from the Buyer's Building Society.

Also, the following may be dealt with :

1. Proof and investigation of title.
2. Preparation and signing of the Transfer documents.
3. Further Searches to ensure that the Seller still owns the property and is entitled to dispose of it.
4. Reporting on the Title to the Buyer's Building Society.
5. Making sure all the money is available at completion.

12. INSURANCE
1. Fire Insurance

This becomes the Buyer's responsibility from Exchange of Contracts. Usually the Building Society, Bank or Insurance Company will arrange this but if you are not obtaining a Mortgage we can arrange insurance for you. If you are buying a leasehold property it is likely that the landlord will insure.

2. Mortgage Protection Insurance

This protects your family should anything happen to you. It means that the Mortgage would be paid off and your family would not have to sell the house and move out if they were unable to meet the payments.

13. RENT AND RATES
If you are selling leasehold property, eg a flat or maisonette, the latest receipt for ground rent and any service charges must be provided to the Buyer's Solicitor at Completion. Therefore, we would need to receive this information after Exchange of Contracts so that the necessary apportionment can be made.

14. COUNCIL TAX
This is usually dealt with by the Seller and Buyer direct with the Local Authority.

15. WATER RATES
This works in the same way as with Council Tax.

16. MORTGAGE REDEMPTION
This means paying off any Mortgages on the property you are selling. If you are a first-time buyer this will not apply. We will arrange to obtain settlement figures from your Building Society and for the Mortgage to be discharged, any Life Policies to be re-assigned and the fire insurance to be cancelled. We will need to know about any second mortgages as soon as possible.

17. COMPLETION - COMPLETE?
The Solicitors have now only to tie up the legal and financial transactions.

We will have already ensured that the necessary funds are available at Completion, either from the proceeds of your present house sale, from the Mortgage Advance, or a combination of the two. If additional funds are required, you will have been notified before Completion. Cleared funds will be required by us before Completion.

18. KEYS
Vacant possession is given when the keys are handed over. This can sometimes cause hold-ups if there is a 'Chain' of Completions because nobody will hand the keys over to the Buyer until the money has been paid in full.

Should a situation like this arise we would probably arrange for the keys to be lodged with the Estate Agent. Then we would confirm that the money has been paid so that the keys could be released.

Now we account to you direct or to your Bank. We send the TRANSFER DOCUMENT for stamping, pay any Stamp Duty required, deal with any Assignment of the Life Insurance Policies and registration of the TITLE at H M Land Registry.

When the registration of title is complete, the Deeds will be sent to your Building Society, Bank or Insurance Company. If you are fortunate enough not to need a Mortgage, we will gladly store your Deeds for you at a small nominal charge.

19. COSTS
The costs for Building Society work, Stamp Duty and Land Registry fees are worked out on established scales.

We can in most instances advise you on these costs when you first instruct us to act on your behalf.

Solicitor's fees are no longer formulated on a fixed scale and we can provide you with a cost quotation at the beginning of the transaction.

PAYMENT OF FEES AND DISBURSEMENTS

Disbursements are monies such as Stamp Duty and Land Registry fees which we discharge on your behalf. We will notify you of our fees and the disbursements before Completion so that all monies can be paid at the same time.

If the Mortgage Advance and/or proceeds of sale are financing the purchase completely, then our fees and disbursements will be deducted on Completion and a statement will be provided.

20. OTHER COSTS
During the latter stages of negotiations you will no doubt already be contacting removal companies for estimates on the cost of moving your furniture. Reputable companies will always quote insurance charges for possible loss, damage and breakages etc, which is an important point, well worth consideration when making enquiries. Remember also, when agreeing your completion date, mid week and mid month tends to be a slightly less busy time for some removal firms, so booking then, may well minimise problems and costs.

We suggest that before engaging either of these services you obtain estimates.

21. WE LEAVE THIS TO YOU!
Most of the above is handled by us. There are, however, certain things we leave to you. These include :

1. Cancel or transfer your Contents Insurance.
2. Arrange for the continuation or disconnection of Gas, Electricity and Telephone services. Have the meters read and arrange for the accounts be transferred to your name.
3. Cancel your Building Insurance if you have no Mortgage.
4. Make arrangements with the Removals Company by giving them a provisional date until Completion Date is finally fixed.
5. Cancel the Banker's Order for previous Mortgage instalments as soon as possible after Exchange of Contracts.
6. Discharge Council Tax and Water Rates up to the Completion Date.

NOTE: The above is intended as a general guide for your information. It is NOT intended as a substitute for proper legal advice. Each case is different and advice cannot be given without a proper analysis of your own circumstances.

© Nowell Meller Solicitors Limited

For more information:
Office Tel: 01782 813315 (Burslem)
Office Hours 09.00-17.15 Mon-Fri
Office Tel: 01785 252377 (Stafford)
Office Hours 08.45-17.00 Mon-Fri

PROPERTY DEPARTMENT:

Jane Matthewman (Director) - Solicitor
John Langford (Director) - Solicitor
Debby Hackney - Solicitor
Gill Squire - Solicitor
Jane Macdonald - Conveyancing Assistant
Carole Wright - Conveyancing Assistant
Marion Denning - Conveyancing Assistant
Helen Challinor - Secretary
Trish Sherratt - Secretary

Last updated by SPK on 08.01.08