Conveyancing is the legal process of transferring property from one owner to another. Sounds simple, but there are many things that can appear along the way to prolong or completely disrupt the process.
Problems can occur on both sides of the sale, selling a property, and buying one. Here are some of the most common problems that may occur, and what to do when you face them.
Problems when selling property
The buyer does not pay the deposit on time.
If this happens, the first port of call is your estate agent. They will probably be able to catch up on the situation, but if not, conveyancers or solicitors may need to come up with a possible solution-charging interest on unpaid deposits, for example.
Your bank is not able to settle on time
Most sellers have a mortgage that needs to be discarded. The process to do so can be extensive, and it’s possible that arrangements made between the bank and conveyancers could be delayed because the banks are not up to speed. This could be for a number of reasons, including the right department not receiving all the documents they need for other banking departments.
Buyers are not ready to settle on time
If you have not already guessed, banks play an important role in the settlement process. Should a bank experience a hold-up in the mortgage process, the buyer will not be able to move forward either. In this instance, a conveyancer or a lawyer can advise you on your rights. Just as delays with a deposit, you may be able to charge interest.
The buyer refuses to settle
To prevent this from happening, make sure that any possible deficiencies in the property are covered by your estate agent when you first consider selling the property.
If a buyer notices any fault that they did not see during their first look at the property, there is a possibility that they may refuse to settle unless the problem is addressed. If this happens, you should ask for help from your conveyancer- who will have the necessary experience to know how to handle such situations. For a HomeBuyers Report London, visit a site like Sam Conveyancing. A HomeBuyers Report London can reveal any issues with a property.
So, what about the problems that can occur when buying a property?
You cannot obtain financing
Most of the time, buyers will not be able to make a major purchase like a house without some form of financing.
Sometimes, the buyer will sign a Contract of Sale, with the agreement that the sale is subject to finance by a specific date. This does not mean that the bank or lender will be able to give their consent to buyers by the same date.
If this does happen, and the buyer still wants to continue the contract (there is also an option to stop it), conveyancers will hopefully be able to request an extension of the financial date.
Banks cannot settle on time
Should the bank be unable to complete a loan by the settlement date, this means that you will violate your contract sales, leaving you possibly facing fees, interest and even an end to the contract!
To avoid the above case, keep communications channels open with your conveyancer to assist in ensuring that all loan documents will be dealt with in time. You may also be able to apply for an extension of completion if necessary.