BUYER - TAKING INSTRUCTIONS

Question 1

WHAT STAGE OF THE LSCP IS USED IN THIS STAGE OF THE TRANSACTION?

Answer 1

Stage A (instructions)

Question 2

WHAT WILL THE COST OF A PURCHASE TRANSACTION INCLUDE?

Answer 2

1. Solicitor’s fees
2. Disbursements - search fees, Stamp Duty, Land
   Registry fees
3. Deposit - typically 20%

Question 3

WHAT DOES THE UK FINANCE MORTGAGE LENDERS’ HANDBOOK REQUIRE WHEN A PROPERTY IS BEING PURCHASED WITH THE AID OF A MORTGAGE?

Answer 3

Solicitors to ascertain the source of the remainder of the purchase price and advise the lender if this is not being provided from the buyer’s own funds

Question 4

. WHAT FOUR THINGS SHOULD THE SOLICITOR DO WHEN ADVISING JOINT BUYERS?

Answer 4

1. Clearly explain the types of co-ownership and advise the implications of each.
2. Ensure the clients understand the advice, that they are both in agreement and that there is no conflict of interest between them.
3. Record the instructions and advice in writing.
4. ensure that instructions are obtained from all co-owners.

Question 5

HOW IS THE DECLARATION OF JOINT OWNERSHIP NORMALLY MADE?

Answer 5

In the transfer deed

However, form JO can now be used in place of the declaration in the transfer.

Question 6

WHAT IS MEANT BY THE MAXIM CAVEAT EMPTOR?

Answer 6

‘Let the buyer beware’

It is up to the buyer to make sure the house they are buying is sound

Question 7

WHAT ARE THE FIVE TYPES OF SURVEY?

Answer 7

1. Valuation
2. Condition Report
3. HomeBuyer Report
4. Full Structural Survey
5. New Build Snagging Survey

Question 8

WHAT IS A VALUATION SURVEY?

Answer 8

Where the client is taking out a mortgage to fund the purchase, the lender will carry out a valuation to ensure the property provides satisfactory security for the loan. This survey is very limited in scope and nature

Question 9

WHAT IS A CONDITION REPORT?

Answer 9

This is designed to complement the lender’s valuation. A condition report is always carried out by a qualified RICS surveyor

Question 10

WHAT INFORMATION IS PROVIDED BY A CONDITION REPORT?

Answer 10

• The property itself
• Properties general condition
• Properties construction
• Serious defects and matters requiring urgent attention
• Matters requiring further investigation
• Any defects which could be a danger to safety

Question 11

WHAT IS A HOMEBUYER REPORT?

Answer 11

There are two types of HomeBuyer report: one contains a survey and valuation; one contains a survey only.

Question 12

WHAT INFORMATION IS PROVIDED BY A HOMEBUYER REPORT?

Answer 12

• advice on repairs
• a list of problems which may affect the property’s value
• legal issues that should be addressed and information
  about the location and local environment.

Question 13

WHAT IS A FULL STRUCTURAL SURVEY?

Answer 13

This is the most detailed type of survey and is often called a Building Survey.

A full structural survey may be particularly important if the mortgage loan represents a low percentage of the purchase price

Question 14

WHAT TYPES OF PROPERTY MAY REQUIRE A FULL STRUCTURAL SURVEY?

Answer 14

• very high value property
• very old or converted property
• a property which has an unusual architectural design
• a property constructed of unusual materials

Question 15

WHAT IS A NEW BUILD SNAGGING SURVEY?

Answer 15

Only relevant to new-builds and this is an inspection to look for any issues with the property which the developer can then be required to fix before the purchase goes ahead

Question 16

WHAT ARE THE SEVEN PRELIMINARY STEPS FOR THE BUYER’S SOLICITOR?

Answer 16

1. Open a file.
2. Receive the notification of sale and EPC
3. Write to the client, confirming instructions in writing
4. Write to any third party who introduced the client
5. Write to the seller’s solicitor confirming their instructions
6. Carry out any necessary pre-contract searches
7. Await receipt of the draft contract and documentation.