‘Buyer Beware’ - Tips to avoiding post completion issues.

We all like to imagine our dream homes being exactly the way we envisaged upon completion.

Being able to move in with no issues and taking our time to replace items such as the boiler and improve rooms such as the kitchen and bathroom. Unfortunately our dreams are not always a reality on completion.

The unfortunate reality of purchasing a property in England and Wales is that the risk is  entirely with the buyer. It is for the buyer to inspect everything in as much detail as possible and for the buyers Conveyancers to raise adequate enquiries to eliminate as much of the risk as possible. This is really where your detection skills are put to the test.

We cannot stress enough the importance of inspecting the property as thoroughly as possible. Ensuring you not only view the property but test the items within it. Asking the seller to switch on the heating in the middle of summer can seem a bit excessive however it will reduce any doubt over the state of the boiler - a costly post completion situation we all too commonly see. Ask the seller, when was the boiler last serviced, if this was not within the last 2 years or if they do not have the report it may be worthwhile asking for it to be serviced prior to exchange of contracts.

Another equally important factor is to ensure that you commission a home buyer survey prior to exchange. It may seem daunting looking at the results but as your conveyancers we can view the home buyers survey and advise on any specific issues to be concerned with. If  necessary we can then raise further enquiries with the sellers solicitors. Our recommended  surveyors can assist and details can be found on our website : www.mjpconveyancing.com 

Finally if there is anything that is of particular concern to you but you do not feel this has been dealt with during the course of the enquiries do let us know. Once exchange has taken  place the seller is not obligated to respond to any further enquiries and it is therefore  important anything you wish to raise is dealt with pre exchange.

Post completion issues really can hinder your enjoyment of purchasing a new property, do  not be caught out inspection is the important key.

 

For further advice on post completion issues please do not hesitate to contact our dedicated  team - completions@mjpconveyancing.com or sophie.goodman@mjpconveyaning.com

Sophie Goodman

Trainee Solicitor

MJP Conveyancing are solicitors who provide legal advice and services to clients based in England and Wales and who can be contacted on 01603877067 or via email at davidp@mjpconveyancing.com

Buying a property without a survey is bonkers!

When it comes to a conveyancing transaction where the Buyer is reliant on a mortgage there is a common misunderstanding the lender carries out a detailed survey.

There are, writes Michael Riches, Trainee with MJP Conveyancing,  three “levels” of surveys that are available to a Buyer, which are: Valuation Report, Homebuyers Survey, Full Structural Survey.

Valuation Report

This is the survey the lender carries out when they are considering a mortgage offer. It is a mandatory requirement for any Buyer reliant on a mortgage. The lender will instruct a surveyor, at the Buyers expense, to report to them on the value of the property. The purpose of the survey is to advise the lender whether the property will make a suitable return should the Buyer default on the mortgage. The report does not comment on the structural soundness or any defects the property may have. It is merely a report on the current market value of the property.

Homebuyers Report

A homebuyers report will comment on the quality of the property. It is a survey more suited to newer properties, by which we mean properties less than 70 years old. The purpose of this survey is to point out to the Buyer any areas of concern such as damp or woodworm and indicate a cost of repair. When instructing a surveyor for their Valuation Report most lenders will offer, at an additional charge, to have their surveyor carry out this survey.

Full Structural Survey

This is a more comprehensive report and as such is time-consuming and costly to the Buyer. It is a survey more suited to older properties, which may have timber frames, thatched roofing or are listed. It would also be the more appropriate survey for any Buyer considering having significant works carried out on the property. As the name suggests it will comment on the structure, major and minor faults and any areas of concern.

After reading the above definitions and what each survey contains it may surprise you to know that only 20% of all Buyers will carry out an additional survey to the mandatory Valuation Report conducted by the lender’s surveyor. There is a common myth that the Valuation Report will be sufficient and provide all the detail a Buyer will require to make an informed decision about the purchase of a property. This is simply not the case.

In the world of conveyancing there is a latin adage Caveat Emptor, which means “Let the Buyer beware”. The seller has a limited duty to disclose latent defects in the property. Therefore it is the Buyer’s responsibility to investigate the property as much as they can. This is a very simplified and edited explanation of the principle to illustrate the importance of surveys. The survey will advise the Buyer of any concerns which can then be duly forwarded to the Seller during pre-contract enquiries. This

may then result in the defect being corrected, a re-negotiated purchase price or indeed neither of these.

It is for these reasons that when asked the question “Do I need a survey?”, any conveyance will answer “Yes!”.

The logical follow-up question would be “Which surveyor should I use?”.

You may be able to use the same surveyor the lender uses to carry out their valuation report. However, it is important when buying a property to make your own investigations in the first instance. A Buyer should always visit the property and inspect as much as possible. By doing this you may find areas of concern that you can ask the surveyor to pay particular attention to. This is an important step.

The main purpose of any survey is to advise the Buyer but it is also to protect the Buyer. By viewing and inspecting the property you will be able to give specific clear instructions to the surveyor on areas of concern to you. This means the surveyor is duty bound to investigate those particular areas as well as conduct a general survey of the property. If a surveyor fails in this duty and a fault is found after completion, then this may give rise to a claim of negligence against the surveyor. If you fail to give clear instructions and the surveyor only conducts a general survey, the report will usually contain caveats to cover the surveyor should any future defect arise.

If you do not want to use the lender’s surveyor then you can instruct an independent surveyor. Most surveyors will be regulated by the Royal Institute of Chartered Surveyors and you will be able to find a local surveyor on their website http://www.rics.org/uk/ . Using a local surveyor will have the benefit of knowledge of the local market values.

When looking to purchase a property the main focus of the transaction should be geared towards finding out as much about that property as possible. When you are buying a property you are making a big investment. Therefore it is important to understand what you are buying, whether it is worth the money you are paying for it and whether there are likely to be any significant expenses in the future. Surveys are one way of achieving this.

MJP Conveyancing  are solicitors who provide conveyancing services to clients based in England and Wales and who can be contacted on 01603877000 or via email at davidpett@m-j-p.co.uk

How to purchase your perfect home

I am told that the moment you cross the threshold you will know there and then property you are viewing is the one for you.   That sixth sense!

Allowing your heart to rule you head can however present a danger. 

As your solicitors we will be able to check and advise on the legal issues but will find it far more difficult to advise on the suitability of the property as a home. Nor will we be able to advise on issues relating to the state and condition of the property or on matters relating to the local environment and amenities.  It is therefore very important to do your homework and to make sure your solicitor is fully appraised of all relevant matters when if comes to providing instructions.  Remember that in most cases your solicitor will not have visited the property.

So here are some tips:

To begin with always visit the property at least once during the day and once in the evening.   The seller will normally wish to give you a ‘guided tour’. Resist this and ask if you can spend some time looking on your own.  Move the furniture around if you can, as it would not be the first time a seller has moved a sofa to hide a damp patch! Be extra cautious if the house has been recently painted as it could be masking serious problems.

Visit the house on a rainy day to check for leaky roofs, walls or ceilings.

When viewing a property, determine how busy the road is, and whether there is any disturbance from flight paths.

Take a look at the crime rate for the postcode by visiting www.crimerates.co.uk/

If the standard of local schools is of importance you can find the latest Ofsted inspection report rating here: www.locrating.com/

Ask why the seller is selling especially if the seller has only owned the property for a short time. Ask them about the neighbours. Look out for knowing glances, avoiding eye contact or mumbling when they answer. And remember that if vendors have made a formal complaint of any kind about a neighbour, it is illegal for them not to tell you

Take a look around the surrounding area and check out the local amenities.  Walk rather than drive, as you will see more. Look at whether the streets are clean and litter-free, whether there is graffiti sprayed around, and whether gangs are hanging about; also establish if there's noise or light pollution from nearby businesses or immediate area.

If public transport is important check the location of the local bus/train station and timings of buses/trains by visiting: www.transportdirect.info

If the seller is a smoker, the smell may end up lingering in the home. You may also have to pay a hefty sum to cover the cost of cleaning and repairing the smoke damage.

Similarly, you may want to think twice before signing up to a property if the people selling it are pet owners, as it may be extremely difficult to remove all traces of the smell of dogs, cats or other animals.

Ask the seller who is responsible for maintaining the boundaries and if there has been any disputes, talk to the neighbours and see what they say, look out for any unusual characteristics and make sure you let your solicitor know if there are any.

Check with the local planning department to see if there are planning applications in place that could if granted affect the value of the property and or your enjoyment of the property as a home.

Check your mobile phone reception and broadband speeds within the home. The following website shows some of slowest areas in the country: http://on-msn.com/VwkVWd

If you are buying a flat speak to the other tenants and if there is a Residents Association establish contact and inquire about the Managing Agents and Landlord to see if they can be relied upon and whether there have been any problems.

Ask the seller whether there has been any flooding, whether the seller has had to make any insurance claims, whether there has been any underpinning or problems with dry rot, rising damp and or beetle or other insect infestation.

Take a look at the heating/central heating, hot water heater, drainage and other major systems. These installations can be costly if they are left in disrepair for too long.

Turn the taps on in the kitchen, bathroom and laundry to check the water pressure, performance and drainage. Check for dirty water.

Are there major cracks in the walls or do the doors stick? This can be a sign of subsidence. This can be an extremely expensive problem to fix and is usually not covered by house insurance.

Measure spaces in kitchens and utility rooms to make sure your appliances such as refrigerators, washing machines, dishwashers and microwaves fit. Failure to fit could add to the cost  of buying in terms of replacements.

I always advise that despite how short of money you may be do not look to make a saving by dismissing the idea of a survey. However well you look and inspect you will not be able to see everything and by investing in a survey you will find out so much more about the property and those who commission a survey are able to negotiate a reduction in the purchase price of around £2000.

Compare home prices in your area to make sure you are paying no more than market value.

Negotiate on the price. If it is a buyers' market, you will be in a position to drive a hard bargain.

So as can be seen while you may think you've found your dream home, the key is to make sure you do your research to explore if there are any issues that might deter you from proceeding further. This means asking the right questions during your viewings, and looking for the all-important details.

Good luck!

Morgan Jones and Pett are solicitors who provide legal advice and services to clients based in England and Wales and who can be contacted on 01603877000 or via email at davidpett@m-j-p.co.uk

What is a Home Buyers Report?

This is a survey of a property you may be looking to buy that’s much more detailed than the basic valuation. It’s for your benefit, rather than the mortgage lender.

It will highlight potential problems with a property, such as subsidence, damp or woodworm. This can help you decide whether to go ahead or not with the purchase, or whether to look to renegotiate the price.

It is always a sensible (and we would say essential) precaution to have a survey of your purchase property especially if the property is an older build. 

A recent Which? Survey disclosed:

‘Those who missed problems spent an average of £2,500 putting them right. One in ten spent more than £10,000. Mark Morris from Newbury told us: ‘Since moving in, I’ve found the rot and damp was much worse than I thought. I’ve also spent several hundred pounds making the electrics safe.’ A quarter said that if they’d known in advance, they would have tried to renegotiate the price, and more than one in ten said they wouldn’t have bought at all'.

Morgan Jones and Pett are solicitors who provide legal advice and services to clients based in England and Wales and who can be contacted on 01603877000 or via email at davidpett@m-j-p.co.uk

Do not buy a house without first checking its condition - could save you misery and money!!

Why buy a house without first checking it is structurally sound?  You would not look to buy a car without making sure it was roadworthy. When you buy a property (other than a new home) you will not have any remedies against your seller if you find out that there is something wrong with the property after you have bought it. It is what we call ‘Buyer beware’.

For this reason we always at MJP Solicitors advise those looking to purchase to obtain a survey. There are various different types of survey.

The most basic is a mortgage valuation. Here the mortgage company surveys the property to ensure that is it worth what they are lending to you. They are not worried about any money that you are putting in and you are not able to rely on these to the same extent as you would a more thorough (and costly) survey.  These reports should not therefore be relied upon. 

The most common form of survey, and the one we recommend, is a homebuyers report. This is much more detailed than the simple valuation and will give you details of e.g. damp problems and roofing issues. You can rely more on this more thorough type of survey. They cost around £350 and represent a sound investment.  To know what you are buying before committing to a property is a must for any home buyer.

At MJP we can organise a Home Buyers Report for you.    We will be paid a commission for putting you in touch with a surveyor.  This is usually around £50.  We make a commitment to share this commission with you if you instruct the surveyor through us.  This all helps to reduce your moving costs.

Our fee for dealing with the legals involved in moving start from as low as £200. For further details please contact davidpett@m-j-p.co.uk