Conveyancing Explained

The seller doesn’t have to disclose what are known as patent defects in title i.e. those obvious to the buyer upon inspection of the property. Examples are rights of way. Its important that you check the property for any evidence of a right of way, such as used pathways, gates, signs etc. If any such defects are apparent, you must tell your conveyancing solicitor straightaway so that he can make enquiries of the seller/seller’s solicitors.

Your conveyancing solicitor should provide you with a copy of the plan of the property held at the Land Registry, showing the land which you are going to purchase. You need to check this carefully against the property on the ground to make sure that you will receive what you are actually expecting to and that the seller is not purporting to sell land to you that he/she does not own.

I’ve seen this happen before, where the seller had decided to fence off some land next to the property that actually belonged to the Council. No one had objected in the two years that had passed since, but the seller still didn’t legally own the land and therefore, what appeared to be a property situated on a large corner plot was actually a lot smaller. Something to be wary of!

Another very important thing to check when you’re viewing the property is who actually lives there. This is important because the person who owns the property might not be the only one who lives in it. Another occupier could therefore be entitled to live there, even after the seller has sold it and you have bought it!

For example, if the seller has a spouse who is not a co-owner, then they might still have a right to live there in law, even though they do not legally own the property. This is because they are protected by the Family Law Act 1996. Those in a civil partnership now have the same rights of occupation. Adult children may also have rights.

Your conveyancing solicitor should raise enquiries about who else lives in the property, but if you think that there are adult children or non-owning spouses, then you must make your solicitor aware of this straightaway. He can then ensure that the occupier signs the contract waiving any rights that they might have to live in the property.

Otherwise, you may find yourself with a lodger on completion!

The seller is generally speaking, not obliged to tell you about any defects at the property. The seller is not guaranting its condition to you and you are legally accepting its condition as at the time that you exchange contracts, unless the seller is in the process of building or converting it.

The exception is that if the seller actually knowingly tries to hide or disguise a physical defect so as to prevent you from finding it on inspection. This is likely to be viewed as false representation and you may have a potential claim. As with all matters, seek the legal advice of your conveyancing solicitor straight away.

Some matters to bear in mind when you view the house you intend to buy;-

Outside the property:-

Brickwork:

• Is the exterior brickwork worn or cracked?

• Is the property rendered? Is there any cracking? How old is it? Bear in mind that rendering can be used to cover over faulty cracked brickwork.

The roof:

• Are any roof tiles missing?
• Are the chimneys safe?
• Is any flashing missing?
• Is the guttering leaking? Are the drains leaking? Visit the property on a rainy day to check.
• Are the fascias in good condition? These are the wood sections under the roof.

The windows:

• Are they double glazed? Ask the owner when they were installed and whether any guarantee is available. If they were installed after April 2002, a FENSA Certificate should also be available.
• Do the window frames look secure, can you see any gaps?
• Can you see condensation on the inside of the windows?

Security:

• Is there a burglar alarm? Ask the owner when it was last serviced, if they use it does it work?
• Check the door locks, are they five lever?
• Are window locks installed? Does the owner have the keys for them?

Inside the house:

Check inside each room for;

• Condensation
• Exposed wires
• Cracks
• Required redecoration
• Required replacement flooring

When buying a house, always;-

• Check whether any electrical works have been undertaken since 1st January 2005. If so, they made need an electrical certificate. Does the owner have this?

• Check the age of the electrical wiring. If its not been serviced for some time, and certainly if the wiring is over 25 years old, you really must have the system checked by a qualified electrician before you proceed to exchange of contracts.

• Check the age of the central heating system and when it was last serviced. I had one client who when buying a house, refused to have the system checked before exchanging contracts, which was of course contrary to my advice. He moved into the property and a week later, the system packed up. He was left with a bill of 1500 pounds to replace it. If he had listened to advice and had it checked by a CORGI registered engineer, he might have been able to renegotiate the price of the house!

The viewing information was taken from the Which? Viewing Checklist. View and download the full Checklist at www.which.co.uk/propertychecklist. I’ve added some extra questions and information above as you will see.

The Valuation Report

When buying a house with a mortgage, this report is obtained by the mortgage lender. A valuer will visit the property to give a basic opinion to the lender as to whether or not it is sufficient security for the loan you have applied for i.e. whether on consideration of the value and condition of the property, it is worth the mortgage lender making a loan to you secured on the house.

You shouldn’t rely merely on the valuation report when reaching a decision on whether to proceed with buying a house, whether it is adequate for your needs and whether its condition is adequate. The exception is if the property has the benefit of an NHBC Certificate and has been built within the last ten years. You can find more information about the NHBC Scheme at www.nhbc.co.uk

The Home Buyer’s Report

This is a more detailed report which usually costs around 400 pounds plus. The surveyor prepares a more detailed report for you, indicating matters which require urgent attention or that may require attention in the future. This report is prepared on your behalf when buying a house and is not for the benefit of the mortgage lender.

People often think that they have had a survey done if they’ve simply had a valuation report undertaken. Not true! At the very least, you need a Home Buyer’s Survey when buying a house.

If your surveyor does spot a potential costly problem, such as extensive woodworm, damp, wet rot etc, then you might be able to negotiate a reduction in the purchase price to take repairs into account. In this way, the survey can pay for itself. Bear in mind that the seller is not legally bound to tell you about any structural problems; it’s up to you as the buyer to find them. Are you likely to be able to find them yourself? Most would answer “No” and this is why the survey is so important.

Make sure you read the small print though; the surveyor may not inspect unexposed or inaccessible areas, for instance below the floorboards or the roof space.

The full structural survey

This is the most expensive type of survey and obviously, the most detailed. Most people are put off by the cost of this type of survey but when buying a house, surely it is better to know what you are letting yourself in for! There are circumstances when full structural really is the only option;-

1) If the property is more than 80 years old.
2) If the property is of high value.
3) If you plan to alter the property structurally.
4) If the property is not of standard construction, in poor condition or in need of renovation.

This type of survey in theory gives the true state and condition of the property but again, make sure you read the small print for exclusions!

If you’re unsure as to which survey you should choose when buying a house, don’t hesitate to seek legal advice from a conveyancing solicitor. You can also find more information at;-
www.rics.org/Property/ResidentialProperty.