INFORMATION REGARDING PROPERTY TRANSFERS
WHAT IS WHAT, AND WHO PAYS WHAT!
FIRST AND FOREMOST, IT IS ESSENTIAL TO UNDERSTAND OUR RIGHTS AS A BUYER OR A SELLER, WHAT NEEDS TO BE PAID, WHO IS LIABLE TO PAY, AND WHO ASSISTS YOU IN THIS JOURNEY.
SELLER:
1. You pick the transferring attorney of your choosing; this can be done entirely at your discretion or on the advice of your estate agent. Keep in mind:
⦁ You should hire a conveyancer rather than an ordinary attorney, as conveyancers concentrate in immovable property transactions.
⦁ You may also find out if the conveyancer files his lodgement and registrations with the appropriate deeds office. If a correspondent is used to handle lodgement and registration, the registration procedure may be delayed.
2. The following expenses may be incurred while selling your home:
⦁ Cancellation of your present bond, as well as payment of the cancellation charges imposed by the bank: your current bondholder owns the original deed to the property as guarantor on the bond. The bond must be settled before permission to cancel is given and the original deeds are released. It is important to note that the bank wants 90 days' notice of your desire to cancel the bond; otherwise, an early termination penalty on your existing bond may be levied.
⦁ Rates and/or levy clearance numbers are acquired from the relevant municipal body and issued 120 days ahead of time, as required by law. If required, levy numbers will also be collected from the relevant management agency for your estate. Payment of these charges will be shown as a credit on your account until the date of transfer, with any excess reimbursed to you by the appropriate institution.
⦁ Electrical compliance certificate: As the seller, you must employ a trained electrician to inspect the property's electrical wiring and produce a compliance certificate in accordance with the Occupational Health and Safety Act of 1993. A property cannot be transferred without this certificate.
⦁ Estate Agent Commission: If you engaged an estate agent to help you promote and sell your home, the estate agent has the right to charge a fee for their services, which you as the seller must pay.
⦁ Other fees that may be incurred include, for example:
⦁ Certificate of conformity for an electric fence
⦁ Certificate of Gas Installation Compliance
⦁ Water / Plumbing certificate
⦁ Beetle certificates
DO ALL OF THESE EXPENSES COME FROM YOUR POCKET?
No, not all of the expenditures listed above must be paid in advance, and some can be covered by a guarantee deducted from the selling profits. You must pay the following fees in advance: rates and/or levy clearing figures, as well as the additional certifications listed above.
WHAT CAN I DO IF I DO NOT HAVE THE FINANCIAL MEANS TO PAY THE UPFRONT COSTS?
You can advise your conveyancer to apply for and get the appropriate bridging finance if a provision is made to pay the said loan from the sale proceeds and pay it back to the bridging business upon property registration.
3. What do I do while I wait for my property to be sold and transferred?
⦁ Discuss any questions you have about the procedure with a conveyancer, and most importantly, compute your estimate based on the information at your disposal using the diagram example below:
| Debit | Credit | |
| Purchase Price | ||
|
Minus - LOCAL AUTHORITY RATES CLEARANCE FIGURES |
||
| Minus - ESTATE LEVIES (if Applicable) | ||
| Minus - OUTSTANDING BOND | ||
| Minus - ESTIMATE CANCELLATION COSTS | ||
| Minus- ESTATE AGENT COMMISSION | ||
| Minus - COST OF ELECTRICAL COMPLIANCE CERTIFICATE | ||
| ESTIMATE PROCEEDS | £ | £ |
PURCHASER
1. Before signing an agreement to purchase, the buyer must be satisfied with their existing financial situation and financial means, as well as their chances of securing a loan from a financial institution.
2. The purchaser is responsible for the transfer fees paid by the transferring conveyance, the bond registration charges levied by the bank-appointed bond conveyance, and the transfer duty.
It is also critical that the buyer be informed of the fees associated with owning a home as well as their monthly obligations. The table below serves as a reference for calculating this commitment:
| BOND REPAYMENT | |
| BUILDING INSURANCE PREMIUM | |
| LOCAL AUTHORITY WATER, RATES AND TAXES | |
| ESTATE LEVIES / HOME OWNERS ASSOCIATION | |
| ESTIMATE ELECTRICITY | |
| TOTAL £ | TOTAL £ |
RESPONSIBILITIES OF THE CONVEYANCER
1. The conveyancer will guarantee that the seller and purchaser's agreement is properly completed.
2. Bond cancellation figures, together with the title deeds, must be requested.
3. FICA will be collected from both the seller and the buyer.
4. On receipt of the cancellation figures and title deeds, the transferring conveyancer will prepare their draft deed and forward the same, along with the request for guarantees, to the bond registration attorneys for issuing the guarantees.
5. Transfer documents will be drafted, and the seller and purchaser will sign the documents.
6. Administration of all finances, including receipt of deposits and occupational rent (if applicable), payment of local authority rates and taxes, estate levies, transfer duty, etc.
7. Liaise with bond cancellation attorneys and bond registration attorneys.
8. Documents are prepared to be lodged at the relevant deeds office.
9. Documents are lodged in the deeds office to be examined. 10. Property registered in the purchaser's name, covering bond registered and seller's bond cancelled simultaneously.