5. The Home Buying Process - A - C

Question 1

What is a purchaser likely to consider?

Answer 1

Proximity to work

Schools & amenities

Availability of road links/public transport

Personal preference ie. proximity to relatives, urban/rural etc

Question 2

It is necessary to consult a mortgage advisor at this point, what would they do?

Answer 2

Establish the maximum amount that can be borrowed

Learn how much will be required - balance of purchase price, fees etc.

Apply for the mortgage

Question 3

What two things will the lender focus on primarily?

Answer 3

Ability to service the loan based on income, outgoings and track record

The suitability of the property as security against the loan

Question 4

Who should the purchaser appoint when the application process and negotiations with the seller are ongoing?

Answer 4

A solicitor/Conveyancer

Question 5

Summarise the role of the seller

Answer 5

Bring the property to market

Set the price

Agree what items will be included in the price (fixtures)

Answer buyers queries truthfully

Give no misleading information regarding the property

Vacate and deliver the property upon agreed date

Remunerate the agent and solicitor

Question 6

What is a Solicitors enquiry form?

Answer 6

Confirms what is included in the price

Question 7

Does the Stamp Duty calculation include fixtures AND fittings?

Answer 7

No, only fixtures

Question 8

What is Gazumping?

Answer 8

Accepting an offer from another buyer at the last minute after already accepting another offer

Question 9

What is Gazundering?

Answer 9

Where a buyer waits until contracts are about to be exchanged before lowering their offer

Question 10

What is Gazanging?

Answer 10

When a seller pulls out of a sale after accepting an offer

Question 11

Who does an estate agent represent?

Answer 11

The seller

Question 12

How are Estate Agents remunerated?

Answer 12

Commission as a % of the sale price or a fixed fee

Question 13

What are the roles of the Estate Agent?

Answer 13

Initial advice

Advising on price

Method of sale

Promoting sale

Arranging viewings

Price negotiations

Liaison with the conveyancer

Question 14

What are the two methods of selling?

Answer 14

Private treaty (Bargain in Scotland)

Public auction

Question 15

What are some examples of why a property may be sold at auction?

Answer 15

Belonged to a deceased person

Repossessed property

Empty/commercial property

Plots of land

Question 16

What is a conditional auction?

Answer 16

The purchaser pays a reservation fee, giving them 28 days to exchange contracs and a further 28 days to complete.

Question 17

What would an Estate Agent likely disclose when promoting a sale/

Answer 17

Type of property (semi detached etc)

Tenure (freehold etc)

Scope (no. bedrooms etc)

Size of land

Location

Question 18

When is an Estate Agent’s role complete?

Answer 18

Exchange of contracts

Missives are concluded (Scotland)