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How Property Contracts Affect You

Author: Garry Crystal - Updated: 30 August 2010 |

Property Contracts Solicitors Purchasing

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 Solicitor

If 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 Conditions

The 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.

Related on Contracts And Agreements...

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 Contracts

Once 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 Duty

It 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 Transactions

Apart 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.

Comments...

I have a contract costing £600 per month. My landlord now says, 18 months later, that I owe him a further £600 because I have only paid him 48 weeks rather than 52 weeks. Is he correct as my contract is on a monthly basis?

sarah michael - 11 October 2011 @ 7:20 AM

I am GP who along with another GP who retired in March, both have our name on the title Deads. We have recently discovered that another partner who does not have any rights to the building and who is not mentioned in the Deeds. Has somehow managed to have a clause placed on the deeds saying that the property cannot be sold without his permission. I Would like to know if this is legally binding considering that myself and the retired partner knew nothing about this and did not even give our consent.

Omlette - 18 July 2011 @ 12:05 AM

I live with 5 other people in a student house, with a letting agency. Four of us get on really well and the other two don't, the four of us don't want to live with the other two any more, due them having arguments leading to violence and so on. We all signed a contract late last year to live at the address for the 2011/2012 academic year, however due to events we do not want to live with these two people any more and feel we have done nothing wrong so why should we move? Sadly the two house-mates will not voluntary leave the contract, is there a way of forcibly removing them from the contract because they assaulted each other in the house and/or drug related instances. Or would it be possible for the four of us to voluntary leave the contract, therefore ruining/cancelling the current contract so then there is no contract between the 6 of us and then signing a new contract with the letting agency without the other two on it and us finding replacement house-mates? If any one could shed some light on this it would be most helpful, thank you.

Mr G - 7 April 2011 @ 3:34 PM

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