Contact your Solicitor
It is a good idea to locate your solicitor prior to going Sale Agreed. Get a quote & don’t forget to check Google Reviews. Your Solicitor will deal directly with your lending institution, auctioneer and the vendors solicitor.
The auctioneer will ask you to pay a deposit on the property which is usually fully refundable up to the point where contracts are exchanged. The auctioneer will then write out to the vendor and purchaser solicitor to advise of the sale. At this point you should contact your lending institution and ask them to send a loan pack to your solicitor. It is advisable to obtain a structural survey on second hand properties, speak to your solicitor if you have any queries in this regard. It is advisable to provide a copy of the structural survey to your solicitor so that she can raise any queries with the other side if so required.
Contract for Sale
The vendor’s solicitor will send contracts and vouching title to your solicitor, your solicitor will then review these documents and raise any necessary queries with the vendor solicitor. If there are any issues with the title, your solicitor will at this stage flag it to you. Whilst your solicitor is dealing with queries, you should be busy satisfying the conditions of your loan offer, life insurance, property insurance etc.
Attend at the office
Once pre-contract enquiries are satisfied and your loan pack has arrived, your solicitor will arrange to meet so that you can sign contracts and your loan documents. You will need to pay a further deposit upon signing your contracts to bring the contract deposit up to 10% of the purchase price. A closing date for the transaction should be agreed in the Contract for Sale.
After you sign your contracts, further works are carried out towards closing the purchase of your property. Your solicitor will prepare a statement of account and you will be required to have closing funds in your solicitors client account 3 days before closing. Your solicitor will arrange directly with your lender to have funds sent directly to their bank account.
Closing the sale
On the day of closing, your solicitor will transfer closing monies to the vendor solicitor to hold on trust. Your solicitor will check the closing documents and ensure that all is in order. Searches will be ordered on the morning of closing to ensure there are no judgements of charges affecting the property in sale. The transaction usually closes in the early afternoon and keys can be picked up from the auctioneers office.
Your solicitor will then require you to attend at the office to sign off on closing documents, your deed will be stamped and an application made to the Land Registry to register you as owner. Once this is complete, the title documents are returned to your lender where they will remain until your mortgage is paid off.