Selling your Property Effectively
Buying a property in the UK can be summarized into three stages: research, negotiation and sale.
If you're a potential buyer, you're most likely to go through the following steps.
1. Find a suitable property and if you feel that property price is within your reach make an offer, most often through your realtor. In UK, making an offer does not legally bind you to buy, except Scotland, where buyer is legally bound to purchase the property if an offer has been made in writing or signed a contract. There are no restrictions on foreign ownership.
2. After your offer has been accepted, you may want to organize a survey investigation. A survey is strongly recommended for early detection of potential problems. In general, there are two types of survey:
-A building survey, which will cost around £ 500 to 1000
-A homebuyer's report, which will be cheaper and cost about £ 300 to 500
3. The legal transfer of ownership is the next step. You will need a property consultant such as lawyer or a licensed realtor for this transfer. Again, there are no typical measures for negotiations, and you'll have to manually consider things like whether VAT and disbursements are included in the original estimate. Transfer litigation is produced by an exchange of notes between the seller and your realtor or solicitor. A "draft agreement" will then be drafted by the notary of the vendor that contains the price, the seller information and property deeds, etc.
Your lawyer will check all the paperwork and negotiate with the vendor's solicitor. A search on the Land Registry is conducted to check the property entitlement. Other checks include such things as water treatment, sewage, electricity/ gas fittings, safety concerns, pollution etc. This part of the transfer and checks takes a minimum two-week, but in some cases may take longer.
4. Once buyer's and seller's lawyer are satisfied, a final contract is signed. It legally binds both parties that the sale must go through. At this point, you pay the seller a non-refundable 10% deposit.
5. A transfer agreement documenting the transfer of property will now be prepared and signed by both parties. A completion date will be agreed. Between the signing of the contract and the date of completion of arrangements with the Land Registry Office are made, the stamp duty and other taxes relating to the registration are paid. Payments are now completed and the acts are presented to you. The process is completed; and you are now the proud owner.
If you are looking to buy a property in Scotland, take the following steps:
1. Hunting the desired property
2. Hiring a Lawyer
3. Organize the Investigation/ Survey
4. Making the offer, and if the offer is accepted you are legally required to complete the transfer. This provides financial reimbursement should the buyer or seller try to abruptly withdraw in the middle of a transaction. A buyer receives an allowance to cover costs of investigation and evaluation. The seller receives an award for loss of interest and other costs.
5. Continue with the sale, if there are no problems
6. Contracts are then signed
7. The money and the deeds and keys are exchanged
The main components involved in each stage are generally similar to the process in the rest of the United Kingdom.
Legal Fees:
Solicitors and surveyors fees are based on the amount of time devoted to the transaction. It is usually negotiable and varies greatly. Some charge a fixed amount, while others charge a percentage of the sale price (about 0.5% to 1%).
Stamp:
The buyer must complete, sign and file a land transaction with stamp duty land tax (SDLT) within 30 days of completion. Some parts of the country are exempt from stamp duty. The Inland Revenue website (http://www.hmrc.gov.uk/so/buy-house.htm) has a list of areas exempted from stamp duty.
Agent's Fee:
Realtor fees are usually negotiable. This commission is usually less if there is just one real estate agency in question. In cases of multiple agencies, where several real estate agents compete to sell or help you buy a home, fees are generally higher. Normally 17.5% VAT is imposed on the agent's commission.
For more information on property, visit our business directory
If you're a potential buyer, you're most likely to go through the following steps.
1. Find a suitable property and if you feel that property price is within your reach make an offer, most often through your realtor. In UK, making an offer does not legally bind you to buy, except Scotland, where buyer is legally bound to purchase the property if an offer has been made in writing or signed a contract. There are no restrictions on foreign ownership.
2. After your offer has been accepted, you may want to organize a survey investigation. A survey is strongly recommended for early detection of potential problems. In general, there are two types of survey:
-A building survey, which will cost around £ 500 to 1000
-A homebuyer's report, which will be cheaper and cost about £ 300 to 500
3. The legal transfer of ownership is the next step. You will need a property consultant such as lawyer or a licensed realtor for this transfer. Again, there are no typical measures for negotiations, and you'll have to manually consider things like whether VAT and disbursements are included in the original estimate. Transfer litigation is produced by an exchange of notes between the seller and your realtor or solicitor. A "draft agreement" will then be drafted by the notary of the vendor that contains the price, the seller information and property deeds, etc.
Your lawyer will check all the paperwork and negotiate with the vendor's solicitor. A search on the Land Registry is conducted to check the property entitlement. Other checks include such things as water treatment, sewage, electricity/ gas fittings, safety concerns, pollution etc. This part of the transfer and checks takes a minimum two-week, but in some cases may take longer.
4. Once buyer's and seller's lawyer are satisfied, a final contract is signed. It legally binds both parties that the sale must go through. At this point, you pay the seller a non-refundable 10% deposit.
5. A transfer agreement documenting the transfer of property will now be prepared and signed by both parties. A completion date will be agreed. Between the signing of the contract and the date of completion of arrangements with the Land Registry Office are made, the stamp duty and other taxes relating to the registration are paid. Payments are now completed and the acts are presented to you. The process is completed; and you are now the proud owner.
If you are looking to buy a property in Scotland, take the following steps:
1. Hunting the desired property
2. Hiring a Lawyer
3. Organize the Investigation/ Survey
4. Making the offer, and if the offer is accepted you are legally required to complete the transfer. This provides financial reimbursement should the buyer or seller try to abruptly withdraw in the middle of a transaction. A buyer receives an allowance to cover costs of investigation and evaluation. The seller receives an award for loss of interest and other costs.
5. Continue with the sale, if there are no problems
6. Contracts are then signed
7. The money and the deeds and keys are exchanged
The main components involved in each stage are generally similar to the process in the rest of the United Kingdom.
Legal Fees:
Solicitors and surveyors fees are based on the amount of time devoted to the transaction. It is usually negotiable and varies greatly. Some charge a fixed amount, while others charge a percentage of the sale price (about 0.5% to 1%).
Stamp:
The buyer must complete, sign and file a land transaction with stamp duty land tax (SDLT) within 30 days of completion. Some parts of the country are exempt from stamp duty. The Inland Revenue website (http://www.hmrc.gov.uk/so/buy-house.htm) has a list of areas exempted from stamp duty.
Agent's Fee:
Realtor fees are usually negotiable. This commission is usually less if there is just one real estate agency in question. In cases of multiple agencies, where several real estate agents compete to sell or help you buy a home, fees are generally higher. Normally 17.5% VAT is imposed on the agent's commission.
For more information on property, visit our business directory
