Buying or selling a property is one of life’s biggest decisions, and like all big decisions, it comes with a lot of admin. Luckily, your conveyancer is able to navigate reviewing and preparing the majority of the documents required to complete. However, it is a good idea to arm yourself with the knowledge of what forms, reports, and other legal papers that you might receive that require that all-important signature or confirmation.
This post will explore the necessary items required before buying or selling, as well as those that are highly advisable to obtain.
Documents Needed Before Buying a Property
When buying a property, you will have a lot more documents to review and sign than when it comes to selling. There are some that are required in every transaction:
- Protocol Forms – These are completed by the Seller and are required by the quality standard board (CQS) of which our firm is a part of. They provide an insight into the property, its contents, and the leasehold aspect (if appropriate).
- Searches and Search Report – Whilst you could theoretically buy a property without the Searches being done, your lender will require this, and they provide a detailed insight.
- Mortgage Report and Deed – Before exchange, we will require you to sign the Mortgage Deed that comes with your Mortgage Offer. This can be signed and reviewed in conjunction with the Mortgage Report we prepare for you.
- Contract – This is signed by you, and the Seller will sign the counterpart. It includes standard terms as well as special conditions that can be added to them. This is dated and sent on exchange. Provides the terms of the purchase.
- Transfer Deed – This is signed by you, and the Seller will sign the counterpart. This is dated and sent on completion. Facilitates the purchase by transferring property to buyers.
- Stamp Duty Declaration – This is to be signed before exchange and will be submitted upon completion with the payment.
- Property Report – A lengthy document with all information regarding the property that will provide a checklist at the end for signature.
Below are some that are optional but highly advisable in various circumstances:
Indemnity Policies
These are insurance policies that act like a plaster for all manner of issues that arise. If agreed, the Seller will need to confirm various statements, and one party will need to pay.
Chancel Indemnity
A specialist policy we ask each Buyer to take out in case any Chancel payments come up in the future.
Electrical and Gas Safety Certificates
Sellers are not legally obligated to provide these, so it is advisable for Buyers to instruct a professional to obtain them. Liaise with the agent.
Buildings Insurance
If you are buying a Leasehold property, this may be paid already, but if not, or you are buying a Freehold, this should be in place from Exchange.
Lease Extension, Deed of Covenant, Deed of Assignment, or Deed of Variation
Not always required, but when they are, they are fundamental to the purchase.
LPE1
This is only for Leasehold properties and needs to be signed by one of the Freeholders.
Documents Needed Before Selling a Property
As a Seller, it may feel as though there is a lot of heavy lifting to do. You have to complete relatively lengthy protocol forms and answer the relevant enquiries raised by the Buyer and their conveyancer. However, the legal paperwork you need to review is minimal compared to the Buyer and limited to the following (and not always all of these):
- Protocol Forms – You must complete these to provide to the Buyer. They must be signed and dated by all Sellers.
- Contract – Refer to Buyer’s section.
- Transfer Deed – Refer to Buyer’s section.
- Indemnity Policies – You won’t need to sign; you will need to confirm that the Statements of Fact are correct.
- Lease Extension, Deed of Covenant, Deed of Assignment, or Deed of Variation – Refer to Buyer’s section.
Buying or selling a property involves important legal documents, from contracts and transfer deeds to optional policies that protect your interests. While your conveyancer will guide you through the process, being prepared can make the experience smoother and less stressful.
For expert advice and support with your property transaction, contact the Howell Jones Residential Property team today on 0800 011 9813 or email hello@howell-jones.com. Our Surrey solicitors are always on hand to help.
