Negotiating and agreeing a sale is always the most rewarding part of any estate agency business.
Just because a sale has been agreed in principle, there is no guarantee that the deal will complete.
Recently I have dealt with a variety of sales, all of which initially seemed very straight forward to market, negotiate and sell. Little did I know how many problems I would encounter once the conveyancing began!
From undeclared easements, grant of probate, poor survey results and unregistered titles to name but a few; there have been a wide range of complications. However, by working closely with the solicitors, vendors and buyers we have progressed to an exchange of contracts but, the fact remains that most of these issues could have been avoided and conveyancing which should have taken 6-8 weeks took up to 4 months.
Although it is not possible to foresee all factors, many issues can be resolved prior to marketing, reducing the risk of protracted negotiations or ultimately the deal being called off altogether. It is imperative that there is thorough preparation prior to launching a property onto the market to ensure a smooth transaction once a sale has been agreed.
Key questions about the property must be asked and may include:
- is the property owned freehold or leasehold?
- is the property listed?
- is the property in a conservation area?
- does it have a NHBC certificate?
- does the property have any specific rights, covenants or grants that need to be brought to the attention of the buyer?
- is there an approved planning permission for the property?
- is the property registered with the Land Registry?
- is the property at risk of flooding?
Many times, the issue of unregistered title can delay and sometimes result in a sale to falling through, with the vendor not even realizing that the title of their property has never been registered. As a general rule of thumb, if a property has been purchased since 2002 it is likely to have been registered as a result of the Land Registration Act 2002.
By preparing a plan of the property boundary it is possible to indicate the size of the plot and can also identify any issues regarding parcels of land which should or not belong to the property.
At the outset of an offer being made it is vital to establish affordability from the buyer. Once affordability has been established it is still possible for potential problems to arise once the mortgage survey has been carried out.
The surveyor may reduce the value of the property because of items highlighted, resulting in the lender not willing to offer the original loan amount requested.
This can be remedied by a renegotiation on price between both parties but can often be avoided by asking the right questions at the right time.
Property chains can also create complications; a short chain can reduce the risk of problems. Some vendors may consider moving in with family or friends to keep things running smoothly and to ensure a quicker transaction.
On a positive note though, a sale which was agreed at the beginning of November 2016, completed in the middle of December - a very smooth transaction with no problems at all. Given the property occupied a position within a Scheduled Ancient Monument forming part of a historic hill fort site, I thought we may be in for all kind of problems…but you never can tell!
Victoria Oldham: Head of agency Stafford
Tel: 01785 275390
Email: victoria.oldham@fishergerman.co.uk
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