next-home-brochure-draft6 - page 22-23

Legal and financial aspects
Legal aspects
Agency agreements
There are different types of agency agreements:
• Sole agency - where you instruct one estate agent to market your property.
• Multiple agency - where you instruct more than one estate agent to market your
property
• Joint agency - where you instruct more than one estate agent to market your property.
The estate agent that sells your property will have agreed to share the commission with
the other estate agents.
Conveyancing
This is the name used to describe the work your solicitor and the buyer’s solicitor will do to
push your sale through to exchange and completion and consists of the following:
Your solicitor:
• Prepares the formal acceptance to send to the buyers solicitor and on completion,
transfers the monies to your solicitor
• Obtains the Title Deeds.
• Sends the signed fixtures and fittings form to the buyer’s solicitor to confirm what is to
be included in the sale.
• Prepares the draft contract.
• Sends the draft contract to the buyer’s solicitor to approve.
The buyer’s solicitor:
• Checks all documentation, raises any initial enquiries, then applies for the local
authority search and any other necessary searches.
• Requests confirmation of the fixtures and fittings to be included in the sale.
• Obtains the buyer’s funds for the purchase of the property and, on completion,
transfers the monies to you.
• Registers the buyer as the new owner of the property with the Land Registry.
Financial aspects
Home Report
Properties placed on the market for sale in Scotland from 1st December 2008 will require
a Home Report, containing three key documents providing prospective buyers with
details on the condition of the house. This will allow buyers to make better informed
decisions on whether to make an offer on the property.the Home report has three
elements and they are, the Property Questionaire, Single survey and energy report.
The fee varies depending upon the Estate Agent or Home Report provider.
Commission fees
An estate agent’s commission fee is calculated as a percentage (%) of the sale price
achieved + VAT at the prevailing rate. If you have decided to instruct your estate agent
on a multiple agency basis and they go on to sell your property, be prepared to pay a
larger rate of commission. Full details of your estate agent’s commission fees will be
outlined in their Terms and Conditions so ensure you have read and understood them
before signing.
Legal fees
Legal fees vary so it is worth shopping around before deciding which solicitor to choose.
Your estate agent should be able to recommend a number of reputable solicitors.
Remember a solicitor with experience in property conveyancing and a thorough
understanding of property in your area will be hugely beneficial.
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Home Reports
Properties placed on the market for sale in Scotland from 1st December 2008 will require
a Home Report, containing three key documents providing prospective buyers with details
on the condition of the house. This will allow buyers to make better informed decisions on
whether to make an offer on the property.the Home report has three elements and they
are, the Property Questionaire, Single survey and energy report.
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