Property contracts explained

The conveyancing element of a property transaction is one of the most complex aspects of selling and buying property. In previous articles we explained the process of buying and selling property and this article will look specifically at the contracts involved in these transactions.

It is not recommended that you try to complete the task of conveyancing on your own because it is a complicated process which is very time consuming and if anything does go wrong it can cause massive setbacks for you and for anyone else in your housing chain. Therefore, it is highly recommended that you instruct an experienced conveyancing firm such as a property solicitor or a licensed conveyancer to undertake this critical stage in the property transaction. Additionally, if you also intend to buy a new home to move into as well as selling your current home you should make sure that your conveyancing firm are aware of this as they can tie both transactions together.

If the seller has chosen to instruct a conveyancing firm to complete the conveyancing process and they have accepted a formal offer, their conveyancing firm will draft the contract. The draft contract will include:

• the accepted selling price
• the boundaries of the property
• which fixtures or fittings are included – this may include carpets, kitchen units, light switches and other items
• any planning restrictions
• details of the property services such as drainage and gasdetails of any legal restrictions or rights such as rules about using the property or public footpaths

This will be sent to the buyer’s conveyancer for their approval and they, with help from their conveyancing firm, are likely to ask questions and negotiate aspects of the draft contract. Once the negotiation process has been completed and terms have been agreed between both parties and their respective conveyancing firms, a completion date is agreed, and the contracts are signed and then exchanged.

As soon as the contracts are exchanged the property transaction is legally binding and if either party decides to back out of the transaction the other party will be able to claim compensation to cover any losses.

Rollingsons conveyancing lawyers move quickly and efficiently to get the job done while providing sound legal advice. The solicitors at Rollingsons are experienced lawyers who understand how important this transaction is to you. For more information or to arrange an initial consultation, please contact us on 0207 7611 4848.