>> Guidelines for the House Purchaser

Although you will certainly need to engage a conveyancing solicitor to complete the legal formalities of purchasing a property and to advise you on contracts etc. it does not come within the range of his responsibilites to protect you against all eventualities and possible disappointments. As in all fields of buying the ultimate responsibility in ensuring the acquisition is the right one lies with the buyer. One or two reminders:

• You buy the property as seen with all its' possible hidden defects and faults.
• The lending source, bank, insurance company or building society will need to have a valuation report carried out. This is for their benefit in establishing whether or not the amount they are being asked to lend is reasonable against the valuation and the property would represent a reasonable security for the amount loaned. You should not rely on this to tell you about faults or problems within the property.
• If work has been carried out before and is subject to a guarantee check whether it can be transferred or if the company that carried out the work still exists. Often it is found that guarantees are unenforceable for one or other of these reasons.
• Be careful not to regard any anticipated completion date as fixed until all parties are ready to exchange contracts, the shorter the time between exchange and completion the greater the likelihood of disappointment, inconvenience and possible financial loss through wasted costs.
• From the time you sign a contract to purchase it is your responsibility to have building insurance cover on the property.
• When you have exchanged contracts there is no turning back. Both you and the seller are committed to the terms.

What information do I receive from the vendor?

The seller is under no obligation to provide any information about the structural condition of the property or if the drainage, water, heating, light or electrical systems work. You are buying the property as seen with all its' hidden faults and defects. After you have completed the purchase you will have to pay for all repairs and alterations even if the work needed doing before completion! Do not, therefore rely on any assurances given when speaking to the seller or his agent.

It is customary these days for the vendor to complete a 'Sellers Property Information Form' to be supplied to the purchaser. This is a standard list of questions normally produced by the conveyancing solicitor which asks questions the answers to which the seller would be expected to know. Check that none of the answers provided are at variance with what you expected or understood to be the case. If you have any concerns whatsoever tell your conveyancing solicitor who will take the matter up on your behalf. There is every possibility that legislation will be introduced to make it compulsory for a detailed 'sellers pack' be produced by the vendor for the benefit of the purchaser and if subsequent faults or disparities occur then there will be redress against the seller. Some local authorities have already introduced such falls within the scope of such an undertaking .

Before instructing solicitors

Although your conveyancing solicitors will have a standard form which they will ask the seller to complete ( the sellers property information ) this will not be raised until they have been instructed by you to act on their behalf. In other words when you have decided to proceed. There are enquiries you can make, however, before you get to that stage which can often result in saving of time and expense if information is forthcoming that would put you off buying. Look around the area to make sure this is the locality and environment within which you want to live and possibly raise a family. What local facilities are enjoyed:

• Transport - near to station or buses.
• Schools - types available and how accessible.
• Leisure Activities - Sporting facilities, theatres, cinemas and entertainment, restaurants, pubs etc.
• Health needs - Hospitals, doctors and dentists.

The situation relating to the above could well have an overriding influence on your decision as buy or not however attractive the particular property might be.

When you have arranged to view a property you will usually find you are accompanied, either by the vendor or someone from the estate agency. Take your time over the viewing, do not be rushed, this could be the most expensive decision you will be asked to make for a long time, possibly for ever. Make out a check list of all the matters which are important to you in considering the property as one to purchase . Take the opportunity of talking to the sellers about your requirements and concerns. After all, no one is in a better position to answer your queries than the very people who have lived in the property.

Check list

Having decided that all the peripheral details add up and you want to have an internal viewing of the property contact the vendors or estate agents to make an appointments. Try to arrange to meet the sellers and raise the matters you have put on your check list. Some questions you might want to ask are:

• How long have they lived in the property? If they have lived there for some time they will be in a good position to answer your questions. If they have only lived there for a short time, why are they moving? Is it because there is something wrong with the place? Is it because there is a rowdy pub or restaurant in the immediate vicinity? Or is it for a reason connected with change of work, or circumstances?
• What are the neighbours like? Are they easy to get along with? Do they have frequent noisy parties until the early hours or are they likely to complain if this is something you are likely to do yourselves. Have there been any disputes over the garden wall, or about parking or any other matter?
• What repairs, if any, have been carried out in recent times and are there any guarantees. Can you inherit the benefits of the guarantees or do they cease when the current owner leaves.
• Ask about the utility bills. How much is an average bill for electricity and gas? What is the rate for water supply and the local authority tax? Answers to these questions will give you an indication of the running costs. What is included with the property?
• What fixtures and fittings are to be taken away and which are to remain?
• Ask how long the property has been up for sale and how many interested parties and viewings have there been.

When viewing a property it is always a good idea to take someone with you, there is a better chance that something will not be missed.

Sellers information form

This is the form which will be raised by your conveyancing solicitors on your behalf and submitted to the sellers for completion. It will comprise of something similar to the following although each solicitor will have their own version:

• Is the seller purchasing another property and, if so, at what stage is that transaction and is any chain complete?
• Has the property ever been extended or altered in any way. If so then copy planning consents and copy building regulations consents should be provided. If these are not available then suitable indemnity insurance should be supplied.
• In the opinion of the seller do all services function correctly and efficiently
• Has the property ever suffered from any of the following ? If so, appropriate details should be provided: a) Subsidence b) Flooding c) Woodworm, rising damp, dry or other rot d) Electrical wiring defects e) Structural building or drainage defects. For any work carried out supply copies of any reports or guarantees.
• Provide the names and addresses of the following: a) Electricity b) Gas. c) Telephone d) Heating oil.
• Confirm that the seller will arrange for the meters to be read on the day of completion.
• What is the current annual amount paid for Council Tax and what band is the property in.
• Is there a meter for the water supply? Provide a copy of the account for water and sewerage charges.
• Confirm that all rubbish and items not included in the sale will be cleared from the property and the seller will make good any damage caused by removal of left items.
• Does the property enjoy central heating? If so confirm: a) What type of system is it? b) Whether it functions satisfactorily. c) When it was last serviced? d) Is there any form of service guarantee? e) Has the boiler been replaced and, if so, provide the appropriate certification.
• Does the property have any replacement windows, roof lights, roof windows or glazed doors which were installed after 1st. April 2002. If so, produce either a certificate issued by a FENSA registered contractor or a certificate issued under the local authority building control. Does the work enjoy the benefit of a guarantee ? If so a copy is required.
• Has the property been burgled and, if so, when? To the best of the knowledge of the seller have any adjoining properties been burgled?

The seller will normally be asked to confirm that the sale price will discharge all charges on the property. Sometimes there is also a blanket type clause which - Is the seller aware of any matter which, if brought to the attention of an intending purchaser may be material to such buyer in proceeding with the proposed purchase.

Is a survey necessary?

If you want to reduce the risk of unexpected repair bills after completion of the purchase then you should have a survey carried out. As mentioned, if you buy the property you are buying as seen with all its' possible hidden faults and defects. There are normally three types of survey or valuation which can be carried out:

• A valuation report - This is the most basic inspection and allows the lender to consider the property for a mortgage. It is undertaken for the lender rather than for you as the buyer but lenders will usually allow you to have sight of the details. If the valuation is less than the price agreed then you could use this to renegotiate the price.
• Home buyer survey and valuation - This is a more detailed report which will highlight any major defects. You will have to pay more for this but if it shows that work needs doing you may be able to renegotiate the price of the property to compensate for this.
• Building survey - This is a detailed technical report on the property outlining any structural defects. The amount of detail required is normally for negotiation with a surveyor as would be the cost of the survey.

It is for you to decide which type of survey you want to rely on but it is perhaps worth remembering the old adage about being "penny wise and pound foolish". Certainly the euphoria of finally occupying your new home could be short lived if you were suddenly faced with additional expenses which might have been avoided if the necessary precautions had been taken.

What about environmental issues?

Contaminated land - At the expense of homeowners a local authority can clean up land which is so contaminated as to cause death, disease or serious injury to health. A property built on contaminated land may have a reduced re-sale value or be more difficult to sell and may even affect your health. If, after viewing the property you propose to purchase, you have concerns that it may be built on contaminated land then inform your conveyancing solicitor who can carry out a search. This will reveal any previous uses of the property which may have resulted in the land being contaminated.

Risk of flooding - More properties seem to be at risk from flooding with the drastic changes in climate which many parts of the country have experienced in recent years. If you have concerns about the possibility of flooding you should ask your surveyor and contact the Environment Agency. The agency may be contacted by telephone on 0845 988 1188 or on the internet at www.environment-agency.gov.uk. If you find there is a risk of flooding then you should inform your conveyancing solicitor. You may feel that the risk is not sufficient to want to withdraw from the purchase but this is a decision only you can make. In any event it will be necessary to inform the insurance company who may take a view as to whether they are prepared to grant insurance cover at all or possibly at an inflated premium and with you, the purchaser, being responsible for a certain amount of any claim (say the first £1,000 as an example).

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