What are the details involved after an offer has been made on a property?

Question

We are not that familiar with the entire process of buying in England. We are ready to put in an offer, but we really don't know what we have to do step by step. We've looked at a lot of websites but can't seem to find the advice we need. Any help would be greatly appreciated.

thx.

Answer 1

First, check the mortgage arrangements (if necessary) and make sure you can afford the property.
Next, make an offer "subject to survey". This means that you will get the property surveyed (you may need to use a surveyor recommended/approved by the building society - if you're getting a mortgage) and only if the property is as it appears be committed to following through with the purchase.
If that is ok, you would probably then advise a solicitor to conduct searches, deal with the conveyancing etc. At this stage you would probably also be expected to pay a deposit.
The solicitor will then advise you on anything else that is necessary.
From start to finish the whole process might take up to 3 months.

Answer 2

If you require a mortgage, then the first thing to do would be to get a "decision in principle" via an independent mortgage broker. Your estate agent will only be too keen to refer you to their inhouse one, but it is also worth getting a second opinion from elsewhere. However, only apply for a decision in principle once as this involves a credit history check - which leaves a footprint on your credit report. A decision in principle is merely the lender saying "we will lend you up to x thousand pounds on a property which fulfils our lending criteria"

When placing an offer on the property, check to see if its part of a chain. If it is, then it can be risky. If the vendors purchase falls through, then they might take their place off the market and hence you lose your purchase as well. In any case, nothing is cast in stone until contracts exchange (see below).

After that, you are in the position to place an offer. Once an offer is accepted, you'll need to instruct a solicitor or licenced conveyancer to act on your behalf. Obtain quotes from 2-3 solicitors and go for the one which you feel most happy with (even if its not the cheapest one).

You will also apply for a survey to be done on the property. If you're applying for a mortgage, then the lender will appoint a surveyor. This is to check the property itself. If you're buying a second hand property, then you'll want a homebuyers report at least. This is a comprehensive report into the condition of the property. You could also go for a structural survey if the property has been extensively altered, or was extremely old.

The solicitor will apply to the local authority for a search, which is basically checking to see if any planned developments are going to affect the property i.e. is it going to be demolished and a motorway built? They may also liase with environmental agencies to see if there are any environmental issues in that area, and may also apply to the water board for information on the water supply and sewage.

Your solicitor will also be in contact with your vendors solicitor, and will ask questions about the property e.g what is included in the sale? do the neighbours have any right of access to the land?

The slowest part of the process is obtaining the formal mortgage offer. Whilst a decision in principle can be obtained within 10 minutes, the formal offer on that actual property can take anything up to 6 weeks.

At some point, you'll be called in to your solicitors to sign the contract. This won't mean anything until your solicitor exchanges it with the vendors solicitor.

Once everything is in order, everyone is happy, and the chain is ready (if there is a chain), then the solicitors will exchange contracts. This is normally done by telephone. Once this happens, you are legally bound to buy and the vendor is legally bound to sell. You pay a 10% deposit which would be lost if you failed to complete.

Unless you're buying a new build property, when contracts exchange you will be told the completion date (i.e. when you can move into the property). From the moment contracts exchange, you are required to have buildings insurance on the property you're buying. This is because you have a financial interest in the property, and the sale still has to go through even if the property burns down!

Answer 3

The estate agency will help you as they get their money faster if they do, but don't be afraid to be pushy. Call them nearly ever day and insist that they tell you what is happening and how long they expect that specific thing to take, when we brough our first house it took months this time its gone through in about 6 weeks just because I kept up to date. My best advice is to choose a local solicitor to do the legal work. Choose one you could get too quickley if you needed too, it really helps move things along! Best of luck! This is a good site for a step by step guide

Answer 4

Here in the U.S., there are a lot of details involved after you put your offer in. You need to work with a real estate agent to look after your transaction. They don't cost you because they get paid by the seller. Isn't there an agent involved to sell the property? Only the local agent can give you step by step details.