1. How long does it take to buy or sell a property?
This can always vary. The average time for a transaction to be completed is 6-8 weeks but in some cases, this can happen much more quickly while in others the process takes longer.
2. Will a deposit have to be paid?
Where you are purchasing a property with no related sale transaction, the contract will provide for a 10% deposit to be paid on exchange of contracts.
3. What is exchange of contracts?
When both the buyer and the seller are ready and happy to commit themselves to the transaction, contracts are exchanged and the agreement becomes binding on the parties.
4. When do you exchange contracts?
The seller and buyers would have agreed on when to exchange the contracts. This is usually done by the solicitors on behalf of the parties once they are satisfied that all queries have been answered and all the conditions have been met.
5. Can I pull out of my sale/ the purchase?
Any party may withdraw from the transaction prior to the exchange of contracts. However, once contracts are exchanged, remedies for breach of contract would be available to the suffering party. The buyer would be able to insist on a return of their deposit or the seller would be able to keep the buyer’s deposit depending on who was at fault.
6. What are the most common causes of delays?
Solicitors will always endeavour to drive the transaction forward, but sometimes delays do unfortunately occur:
- the length of the chain involved- one point of the chain being delayed means everything else will be too
- delay in getting certain information or documents from outside organisations
- the mortgage offer is issued with unforeseen conditions
- something unexpected is revealed in the searches and enquiries that are carried out
7. How much stamp duty do I have to pay?
The stamp duty is payable by the buyer, not the seller. Under the new system, the stamp duty is charged in the following way:
Up to £125,000 purchase price- Zero
Over £125,000 to £250,000- 2%
Over £250,000 to £925,000- 5%
Over £925,000 to £1.5 million- 10%
Over £1.5 million- 12%
- Purchase price £275,000 (average UK house price). Tax was £8,250 – now £3,750
- Purchase price £510,000 (average London house price) Tax was £20,400 – now £15,500
- Purchase price £2,000,000 Tax was £100,000 – now £153,750
8. What is a contract race?
This is where the property being sold is offered to more than one buyer, usually on the basis that the first to exchange contracts will get the property. Contract races are entirely legal although if more than one contract is issued, then the seller has a duty to inform all parties that this has happened. If you lose out on a contract race you cannot claim your lost expenses from the seller.
9. When can I move in by/when do I have to move out?
The buyer can move in on the day of completion; that is when they can receive the keys to the property. This also means that the seller must move out by the day of completion and clear the property of all their belongings. Usually, the contract states a specific deadline on the completion date to move out by such as 1pm.
10. What happens on the completion date?
The completion date is the date on which the buyer’s solicitor transfers the purchase money from their bank account to the seller’s solicitor’s bank account and the ownership of the property is officially transferred to the buyer. It will be arranged for the keys to be handed over to the buyer, and they can move in on that same day.
At HA Law we can assist you on all aspects of selling or buying a property in the UK. A full list of our property services can be found on our PROPERTY page. For further information, please email info@ha-law.co.uk or telephone 020 7788 7465 to speak to a HA Law Partner.
