Making an offer
Once an offer has been made for a property through iSold, there are certain legal requirements which have to be met in England and Wales.
- The property can be advertised as "Under Offer" or, when the seller has accepted the offer but the paperwork is still being completed, "Sold Subject to Contract".
- At this point you are not committed to the sale. If, for any reason, you decide not to go through with the purchase you can pull out without penalty. But the seller is also not committed to the sale. If another buyer comes in with a higher bid and the seller accepts then you have been "gazumped".
- At iSold, your dedicated sales progressor will ensure that details of the property are passed on to your surveyor, solicitor and mortgage provider. They will keep in regular contact with all three to ensure your file stays at the top of the pile and they deal with it swiftly.
- If the survey highlights issues or problems that you think should be reflected in a reduced price, now is the time to re-negotiate.
- Your solicitor will begin the conveyancing. For the buyer, this includes undertaking searches at the local authority and dealing with the results, receiving mortgage offers, and preparing the contract.
- Contracts are exchanged once the solicitor has carried out all necessary searches and there is agreement to the contract terms.
- Once each party has signed the contracts and they have been exchanged, they are binding. You cannot pull out without penalty once you have exchanged contracts.
- The contracts will include a completion date, which is the date that the property becomes yours.
- At exchange of contracts any deposit needed has to be paid.
- Arrangements for building insurance must be made so that the property is insured from that day. Usually, the present insurer will cover this new property free of increased premium until the completion date.
The steps to completing
- The seller's solicitor finds out how much the seller owes on their current mortgage.
- The seller's solicitor approves the transfer deed. This formally transfers ownership of the property to you once the seller signs it.
- The buyer's mortgage company will send the balance of the purchase fund to the seller's solicitor.
- The seller's solicitor will send the transfer deed to the buyer's solicitor.
- The seller's solicitor will take their fee and expenses out of the funds the seller has received.
- The seller's solicitor will clear the balance of the seller's mortgage.
- The seller's solicitor will send the remainder of the money to the seller.
- The buyer will arrange to collect the keys to their new home.
Please note, this is a handy guide and does not constitute financial advice.