Raworths LLP is one of the first law firms in the country to be awarded the Law Society’s new Conveyancing Quality Scheme approval. Head of residential property at Raworths, Mike Sheldon, advises on the possible pitfalls when buying a new home...
People withdraw from buying properties for a variety of reasons. The main reasons are change in personal circumstances, inability (for whatever reason) to raise the money, a negative survey and problems with the title.
Whilst there is little a solicitor can do about some of these, a solicitor can help with issues on the title to a property. Sometimes, however, the best advice has to be not to proceed with the purchase.
Buying a house is one of the largest financial commitments that most people will make. Getting it wrong can be catastrophic, especially in a static market. Checking for title problems and either resolving them or having the advice to make an informed decision to proceed or withdraw from the purchase is essential. Areas that need to be checked include whether the seller can actually sell the property, whether you can access the property and whether it has all necessary services, what you can and can’t do with the property, and, what exactly are you buying?
The first question is whether the seller can legally sell the property. If the title is registered at the Land Registry, hopefully this should be a fairly simple question to answer. Even then, however, your solicitor needs to check that there are no ‘restrictions’ on the title which limit a sale unless certain conditions are complied with. If the title is unregistered, your solicitor will need to check through the title deeds to follow and check the chain of ownership.
The second question is to check whether you will be able legally to access the property in the way you wish to or, for example, is access limited to access on foot? Additionally, your solicitor will need to check whether the property has the legal right to use or connect into all necessary services.
Covenants on the title are obligations that you must or must not act as specified. They can range from only using the property as a single private residence to not parking a caravan on the property to paying a proportion of the cost of maintaining and repairing a shared drive or fence, etc. There could also be prohibitions on developing the property or provision that if you get planning permission you have to pay a certain percentage of the increase in the value of the property to a previous owner.
You also need to check that what you are buying is what you think you are buying. Not only do you need to compare the extent of the property with the title plan but you need to check that everything you are expecting to be left is listed in the Fittings and Contents Form. Additionally, are you buying the freehold of the property or a lease? If leasehold, how long will it be before you either have to hand possession of the property back to the landlord – or to apply for an extension of the lease? Will you own that piece of land across the back road? What about the attic room which seems to extend over the neighbour’s bedroom? A new issue that is beginning to raise its head is who owns the solar panels – the seller or the company who paid for the installation of the panels?
There can be various issues with Planning Permissions and Building Regulations – or lack of them – which ultimately could require a building to be demolished or prohibit you occupying the house because, for example, you are not employed in agriculture.
Whilst Conveyancing may seem to be simple and just pushing bits of paper around and signing on the dotted line, behind the scenes there are many issues that need to be checked and resolved and you need to instruct a reliable solicitor.
If you would like more information, please ring Mike Sheldon on 01423 566666. To contact Raworths, telephone 01423 566666 or visit our offices at Eton House, 89 Station Parade, Harrogate HG1 1HF. Alternatively you can email mike.sheldon@raworths.co.uk
