Guide to the purchase of a property

Buying a property can be confusing, the steps below are generalised but should help you get a better idea of what to expect when buying a house. Remember there may be additional steps specific to your purchase so keep on top of your documentation.

(Based on a property purchase in England)

Stage 1

Before looking for a property it is worth getting a rough idea of how much mortgage you can have. Many mortgage calculators exist online but you should see an adviser to make sure there will be no other issues.

The first step and one of the most difficult is to find a property. Once you have found the property you make an offer. This usually means speaking to the seller's agent and saying you are interested in the property and want to make an offer of however much you decide.

Once your offer is accepted and the property is SOLD subject to contract.

Stage 2

Your accepted offer is still subject to contract - which means the sale is agreed but isn't binding until you exchange. For the time being, either side can back out without facing legal charges.

After your offer is accepted you need to provide the agent with your solicitors details and arrange a mortgage and arrange for surveys and instruct your solicitor or conveyancer to start proceedings. This will include local authority searches and environmental searches if necessary.

Depending on the results of the survey you may make further price negotiations or decide not to purchase this property.

Once they're happy with the legal aspects of the property, and you have the finance in place, you can exchange contracts.

Stage 3

When you exchange you will be asked to sign the contract and mortgage deed and provide a deposit (usually 10% of the agreed sale price). (Completion dates will be agreed at this stage). The contracts will then be exchanged with the seller's solicitor. The sale is now legally binding.

Stage 4

On the completion date the balance of the funds will be handed over in return for the title deeds from the seller's solicitors. If applicable, stamp duty is paid. The Land Registry will be notified of the transfer.

Collect the keys from your seller's estate agent and move in.

Take Note !

Changes are on the way :-

The 'home information pack' From the 1st of June 2007 government legislation will change the way we buy and sell homes in England and Wales. The responsibility for getting searches and surveys done will become the seller's, that way a buyer can make a more informed choice. The surprise survey problems that can ruin your purchase or add extra cost should be minimised, but the full extent of the change will not be known until after it has come into force.