Buying property - 20 steps to close

C

ct_roy

Guest
Hi all,

First off, this forum has been a real eye opener and educational experience for all that goes with buying property on our wonderful little island.

While some of the stickies and key posts have been very useful for general background info and cost details etc, I have yet to see a definitive checklist of events that need to take place to close a property.

I think this would be really useful for us FTB's.

Personally, I'm about to place a booking deposit on an apartment tomorrow and have yet to get full mortgage approval OR appoint a solicitor (found a great apartment and just HAVE to go for it asap)

I'm concerned that I'll miss something or won't have time to do all the necessaries in the window to avail of freebies the developer is offering for 14 day turnaround of signed contracts (freebies are free fridge/freezer, washing machine/dryer, cooker.) And I have to balance that against snag lists, valuations, getting mortgage approval. etc! (deep breath!)

so, i'm making an initial stab at an ordered todo list for an FTB to use as their template for buying a home. Please, please, please point out my mistakes and use your years of experience to correct my glaring mistakes.

also, as time is always a factor with these things, what will be the most time consuming tasks, what risks are there. (i.e. if my snaglist is not completed, will i lose my freebies because i refuse to sign within window provided by developer? etc.)


here goes:

1.) get finances in order (booking deposit, main balance deposit 8-10%, salary certificates, p60, bank statements - 3months)
2.) know your mortgage limit (discuss with broker or apply for approval in principle directly to mortgage provider)
3.) find your ideal property
4.) negotiate/agree intention to buy with estate agent
4.5) place booking deposit (3-5k normally)
5.) you inform mortgage broker of intention to purchase
5.5) - you decide on mortgage repayment preference (e.g. fixed, variable, tracker, current account etc.)
6.) appoint your solicitor
7.) inform estate agent of solicitors details
8.) estate agent forwards contract/paperwork to your solicitor
9.) solicitor informs you of receipt of contract
10.) you appoint surveyor for snaglist (or DIY!)
11.) you get formal approval letter from mortgage provider for loan amount
12.) your lender will conduct an independent valuation of your property
13.) your snaglist report will be presented to the developer
14.) your developer resolves all items on snaglist (hopefully)
15.) you sign contracts with your solicitor
16.) solicitor sends off signed contracts with proposed close date
17.) you pay balance of deposit (10 or 8% minus initial booking deposit)
18.) remaining conveyancing tasks are complete - NOTE: I'm in a grey area here - please help! - i dont know if all these should happen before step 16/27
19.) at completion date, loan is drawn for outstanding balance from your mortgage provider.
20.) You get your keys and close!
 
good thread...
anychance a similiar one could be posted regarding FTB's of Secondhand properties...
cheers to all
 
The banks I went to want 6 months bank statements and 3 months pay slips. And one bank wanted 3 P60s (I'm going for a 100% mortgage and they require this as proof of min 3 years permanent employment).

I think getting all this paperwork together is the worst part. Helps looking around for solicitors and surveyors at an earlier stage also, so when you come to need these, you have them at hand...
 
You forgot the sourcing of:
-life assurance
-house insurance
- Mortgage protection if required.
 
Hi there,

I'm in the middle of buying, and thought the developer would only consider doing the snag when contracts are signed and 10% deposit paid? Is it likely they would conisder doing this earlier? (ie points 13 7 14 would come after 15 & 16). I'd be interested in other people's experience of this. Thanks.
K
 
Kitty said:
Hi there,

I'm in the middle of buying, and thought the developer would only consider doing the snag when contracts are signed and 10% deposit paid? Is it likely they would conisder doing this earlier? (ie points 13 7 14 would come after 15 & 16). I'd be interested in other people's experience of this. Thanks.
K
Click to expand...

I think unless maybe you are talking about a new development which is virtually finished then in most circumstances 13 & 14 would come after 15 & 16 (and 17 as well). Buying off plans the contract deposit might not however be a full 8 or 10% (in my own case I paid E3K booking and a further E4K 3 weeks later on signing of contracts).
 
your lender will have to have a valuation done on the property before any loan offer is given
 
What is the latest point the Vendor can withdraw from a Sale?
If they have sent the contract to your Solicitor and you have signed and returned it to their solicitor - can they still pull out of the sale?
 
"Please note that we do not have any authority either express or implied to bind our clients in any way and we must emphasise that neither this correspondence nor any negotiations had between our clients shall constitute a note or memorandum within the meaning of the Statute of Frauds until such time as both contracts are signed, exchanged and a full deposit is paid."

This is the expression we use in all correspondence until such time as the contracts are binding. In the situation mentioned, if the contracts have not been signed by the Vendor then there is no binding contract and they can pull out. This is broadly speaking - there can be some circumstances where a binding contract could be said to exist.

mf
 
"is the deposit always refundable up to exchanging the contracts?"

Broadly speaking, yes.

See above

This is broadly speaking - there can be some circumstances where a binding contract could be said to exist.

mf
 
Hi all. I have just put a deposit on a secondhand property. In relation to the steps outlined above how many of these are still relevant and as it is a secondhand house is there anything extra I should watch out for? Thank You.
 
Just one suggestion. When i tried to get a survey done on a secondhand property i was buying the surveyors seemed to be booked up for weeks even months in one case so i'd recommend trying to book one as soon as you decide to buy a property. They're unlikely to be able to do it straight away so you have a chance to cancell if everything goes belly up. The surveys are limited so try to have a good look yourself. Test things like the shower etc, run your hand along the radiators as you go round checking heat etc. Found loads of things when i moved into mine. Hot tape in sink not connected to hot water. Shower connected to mains - no hot water at certain times of the day. Soft board under the carpet in one of the rooms instead of floor boards etc. etc. Expensive lesson learnt.
 
They have their own valuer who carries out the valuation for them. Mine didn't recommend a surveyor. Better to try and get a recommendation from a friend. I ended up getting one i didn't really have a recommendation on because the one i originally wanted just couldn't do it within the time frame - too busy. Was sorry after i didn't wait.
 
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