Protecting yourself when selling and buying a property

Selling or buying a property is one of the biggest financial and personal decisions of your life so it is important to protect yourself against unscrupulous scams and dishonest practices. Knowing what warning signs to watch out for and how to safeguard your interests can help you avoid common traps and safeguard your interests. This will ensure that you are protecting your money and your peace of mind.

What should I look out for when selling my property?

Valuation and Offers: Make sure the valuation of your property is accurate and reflects the current market conditions with evidence-based valuations. In addition, make sure you get documented feedback and evidence of offers.

Contracts: Before signing any contract make sure you know how long you will be tied in with that agent, your cancellation rights and any withdrawal penalties. Always read the small print to ensure that there are no clauses which are unfair to you and not in your best interest. If you are unclear about any clauses, ask for it to be explained. You should make sure you understand the minimum length of time you are bound to work with the agent and how much notice you need to give should you wish to leave.

In-house services : You have the right to choose your own conveyancer. You do not have to go with the agent’s recommended panel solicitors.

The “ready, willing, and able” clause: Be wary of this clause whichstates that if the agent introduces a buyer who is able to proceed, you must pay the fee, even if the sale falls through later. This can leave you paying for a service that didn’t result in a completed sale.

How can I best protect myself ?

• Always read contracts carefully and question anything unclear. Seek independent legal advice before signing anything if you are unsure.
• Be wary of long tie-in or notice periods that limit your flexibility.
• Don’t feel pressured to use an agent’s in-house conveyancer.
• Ensure you are getting a ‘no sale no charge’ deal and avoid “ready, willing, and able” clauses.

What should I look out for when buying my property?

No upfront costs : Unless you are buying a property by auction, you should not be expected to pay any non refundable holding deposits. These are increasingly used in modern auction style arrangements and can be risky because you could lose your money if you later withdraw from the purchase.

Offers : You should not have to pay any deposit or sign any Agreement to enable the Agent to put forward an offer to the Seller in a standard transaction. You should always make an offer on a property subject to survey, subject to contract and subject to mortgage finance (if applicable). This protects you, as the buyer, and allows you to withdraw from the purchase with no penalties if any adverse issues come to light.

Own panel solicitors or mortgage advisors : You have the right to choose your own solicitor or mortgage advisor. Some agents may ask you to sign an agreement which means you can only use their own panel solicitors or mortgage advisors.

Information on the property : Your solicitor will be able to formally confirm matters such as lease terms, boundaries, parking rights, service charges, planning permissions through standard conveyancing enquiries as the matter progresses.

The Seller : Check the position of the Seller and if the property is being sold by an Executor, Attorney or Receiver. Be aware that it may delay the transaction if a Grant of Probate is required and there could also be legal limitations on authority, warranties or property knowledge.

Conditions: Always ensure any conditions such as asking the Seller to fix something or carry out certain repairs at the property, prior to completion, are in writing and contractual via your solicitor.

How can I best protect myself?

• Always make sure you read all the terms and conditions, including the small print, before you sign any agreement. If you are unsure about any wording, ask for an explanation or seek independent legal advice prior to signing.
• Don’t feel pressured to use an agent’s in-house mortgage advisor or conveyancer.
• Verify all information provided to you independently
• Ensure the offer is subject to contract, survey and finance.
• Avoid paying non-refundable deposits unless it is a true auction.

Speak to Sarah Rowles

Sarah is a Licensed Conveyancer at Wollens and can advise you. Contact Sarah via email sarah.rowles@wollens.co.uk or call 01803 396613.

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