There are various legal considerations to navigate when selling a residential property in England. A key step in the sales journey is enlisting the services of a qualified solicitor. A solicitor is your legal representative, guiding you through the complex legal process and safeguarding your interests throughout the conveyancing transaction.
Getting Ready to Sell
Estate Agents
Most sellers will engage an estate agent to value the property and put it on the market. An estate agent with a good understanding of the current market can help promote your property accordingly. The agent facilitates physical inspections of the property by potential buyers, conveys any offers made to the seller, and assists with negotiations. If you are not using an agent, you will need to liaise directly with potential buyers.
Mortgages
If your property is mortgaged, you will need to contact your lender to determine how much is required to pay out the loan on settlement or make arrangements to transfer the loan/mortgage to another property. Early repayment charges and other fees should be factored into your plans.
Property Information Form (TA6)
Before selling, you will need to ensure that you have all relevant information about the property to provide to a prospective buyer. The Property Information Form, also known as the TA6, provides essential details about the property. It covers information on matters such as boundaries, disputes, environmental concerns, insurance, parking, utilities and services, and any alterations made to the property.
The TA6 must be accurate – misleading or incomplete information can lead to legal disputes and jeopardise the sale of your property. Your solicitor will assist you in preparing this form, ensuring all disclosures are accurate and compliant with legal requirements.
Energy Performance Certificate (EPC)
In the UK, it is mandatory to provide an Energy Performance Certificate (EPC) when selling a property. This certificate rates the property’s energy efficiency on a scale from A (most efficient) to G (least efficient). Potential buyers can use this information to assess the property’s running costs and environmental impact.
An accredited energy assessor will conduct an assessment of your property to generate the EPC. This certificate is valid for ten years and must be made available to prospective buyers.
Title Deeds and the Land Registry
Providing clear and indisputable proof of ownership is fundamental to a smooth property sale. In the UK, the Land Registry maintains official records of property ownership. Your solicitor will conduct searches to verify your ownership and ensure there are no outstanding legal issues that could impede the sale.
Offers, Contracts, and Exchange
Once you receive a suitable offer for your property, the next step is to formally accept it. However, accepting an offer doesn’t legally bind you to the sale. At this stage, the buyer’s solicitor will arrange for searches and review the property’s title.
The seller is responsible for preparing the contract to transfer ownership of the property. The contract includes the agreed sale price, property boundaries, legal restrictions on rights, planning restrictions, services to the property, and the completion date.
You will also need to deal with fixtures and fittings in the contract. Fixtures are items permanently attached to the property, such as built-in wardrobes or kitchen units, and are typically included in the sale. Fittings, on the other hand, are movable items like curtains or freestanding appliances, and their inclusion in the sale is negotiable. To avoid confusion or disputes, your contract will need to specify which fixtures and fittings are included in the sale.
The exchange of contracts marks the point where both parties are legally committed to the transaction. Your solicitor will handle the contract exchange process, ensuring all legal requirements are met and your interests are protected.
Capital Gains Tax (CGT) and Rented Properties
If you sell a property that is not your primary residence, you may be liable to pay Capital Gains Tax (CGT) on any profit you make from the sale. However, there are exemptions and reliefs available that can reduce or even eliminate your CGT liability. You will need to consult with a tax advisor or solicitor to understand any CGT implications on the property sale.
If your property is rented and is being sold with vacant possession, you will need to determine and give the correct notice to your tenants.
Completion and Transfer of Ownership
Completion is the final stage of the property selling process, where the ownership of the property is officially transferred from the seller to the buyer. The property should be vacant by the completion date unless otherwise agreed.
On completion day, the remaining balance of the purchase price is transferred, and the keys are handed over to the new owner. Your solicitor will oversee the completion process, ensuring all legal and financial matters are finalised correctly.
Conclusion
Selling a residential property involves multiple stages, each requiring careful consideration and attention to detail. The information in this article provides a general overview only and does not constitute legal advice – when selling your property, we strongly recommend that you seek professional advice tailored to your circumstances. From preparing contracts to handling negotiations, the expertise of a solicitor experienced in property law is invaluable to streamline the process, anticipate potential pitfalls, and offer proactive solutions.
This is general information only and you should obtain professional advice relevant to your circumstances. If you or someone you know wants more information or needs help or advice, please call 01289 306724 or email [email protected].