George Berry, Residential Area Manager, asks why English property sales aren’t smoother like Scotland’s.
On so many occasions from buyers and sellers, I hear: “Why is the English property process such a nightmare and why can’t it be more like Scotland?”
In this day and age, given property is our biggest financial asset why do we have a process that allows buyers to make an offer, proceed with a purchase and then pull out at any stage before exchange without any come back. Given a move can be emotionally stressful and financially strained for many reasons, this scenario only makes it potentially far worse.
For those that can remember a few years ago we had Home Information Packs (HIPs). The idea of these was a good one but like many new things brought in, the implementation was poor and led to their failure. The real strength of them was two things. As vendors had to pay an amount up front it forced a financial commitment to the selling process, albeit a nominal sum. However, any sum seemed to have the effect of clients being less reluctant to dip in and out of the market.
The other real positive was, it pushed vendors to collate far more information prior to launching to the market and notice if ‘necessary’ documents were missing. This meant that theoretically the conveyance process could be shorter and smoother as a sales pack could be created quicker. In addition, buyers could view far more information prior to offering leaving less reasons for them to withdraw down the line. Of course, if people have unexpected financial or health issues that force them to change their plans, then these cannot be helped.
How Preparation Can Make All the Difference
We no longer have HIPs so what can we learn from them and apply to selling our homes to reduce stress and make the process smoother?
1) When deciding to move, it is wise to choose and appoint your solicitor immediately. Get them to send you the protocol forms upon engagement and you can then work through them ensure you find the appropriate documents and certificates. If it transpires that there is paperwork missing or things need addressing, then you will have time to deal with it upfront and prior to a sale being agreed.
2) There are three dominant factors that can really make or break a sale; boundary issues or unregistered titles, non-compliant private drainage systems and survey issues.
By engaging your solicitor early will enable you to commence the first registration of the title if required and also clarify any boundary issues versus the official title. I have had a situation recently when the boundary on the ground does not match the Land Registry Plan. This came out towards the end of the conveyance and caused a lengthy delay. If it came to light at the start of the process it could have been addressed.
Regarding private drainage, the Government are doing all they can to try and phase out old septic tanks and by changing binding rules they are making the majority non-compliant. You will not be able to shy away from this issue and you have two options. You can choose to get it replaced with a treatment plant prior to selling so you know there will be no issue, or you can factor it into negotiations and give an allowance to a buyer for its replacement.
3) If you have a property that requires a lot of work, then something to consider is getting a survey done yourself prior to selling so buyers can see it before they offer and can make an informed decision. Alternatively, get a builder to look at issues with a view to getting some resolved or quotes to have them fixed. Renegotiations following a survey are when many sales fall apart. If buyers are more informed when offering as to works required and potential costs it will reduce the likelihood of reductions towards the end when everyone is stressed.
The key to a better and smoother sale is in the preparation. A better presented house will achieve a higher price and a better prepared vendor will achieve a smoother result.
This article was first published in the Diss Express.
