How Property Contracts Affect You
Written property contracts are a necessary requirement regardless of whether you are buying, leasing, or renting. Property contracts are used as evidence of the agreement between the person who has the property and those that wish to buy or rent it. Once the contracts have been signed and exchanged they will then become legally binding documents.
Use a SolicitorIf you are planning on leasing business premises or buying a property then obtaining the services of a solicitor should be a priority. Choosing a solicitor that specialises in property law will ensure you obtain the best deal for your money. Property solicitors will of course have a great deal of expertise in this area.
They will be able to negotiate on the buyer’s behalf, make searches that ensure the title of the property is in order, and conclude the purchase within the quickest timeframe. Good property solicitors will also be able to carry out searches to ensure that there are no problems with the property, and make sure that all of the property contracts’ terms and conditions are agreeable. Banks will also be able to verify with solicitors that the property to be purchased is actually a good investment deal.
Terms and ConditionsThe terms and conditions of any property contract will be all important. They set out the requirements, expectations and obligations of both parties involved. They are also there to protect the rights of the purchaser and to make sure they obtain a fair deal. Most contracts will have standard details throughout but the terms and conditions should be worked out and agreed by both parties.
Of course the terms and conditions of most property contracts will have a number of consumer rights set into them that will be standard. However, there should be room for negotiations depending on the type of property contract. For example business lease contracts are require by law to allow for the negotiation of the terms between landlord and tenant. No contract terms and conditions should ever be set in stone before the contract is signed, there should always be room to negotiate to ensure that both parties have a say in the deal.
Exchanging the ContractsOnce all of the terms and conditions have been agreed and funding is ready to be released then the property contracts will need to be exchanged. This will take place on the completion date; this the date that the buyer holds the legal title to the property. Once the contracts have been exchanged then the buyer is legally bound to buy the property. There will also be a deed transfer, which means that there will be an official record of the new owner held at the Registry of Land.
Stamp DutyIt is a legal requirement that any deed transfer officially receives a stamp. Stamp duty is a tax made by the UK government on any properties over £60,000. A solicitor will make all of the arrangements for stamp duty if they are required. Also included in the details will be the mortgage lenders interest in the property.
Sale and Purchase TransactionsApart from finding the cost of the property, first time buyers do have it easier regarding fees and contracts than the second time buyer will. If you are selling and purchasing a property then this will count as two separate transactions. All the paperwork will usually be handled by a solicitor, but it will mean extra work and will mean extra solicitor’s fees. Solicitors will normally have a single transaction fee as standard and will view sale and purchase transactions as two separate transaction fees.
There is no doubt that property contracts can be confusing for the inexperienced buyer. This is why solicitors are always used to hold the hands of first time buyers and guide them through the whole process. Solicitor’s fees may be expensive but they are required, and are the best way to ensure the protection of rights for anyone who is about to enter into the world of property contracts.