Breadcrumbs: > >
Get your free preview copy
spacer
spacer

What does 'Vendor' mean?

Vendor

In property sales the vendor is the name given to the seller of the property. This does not mean they are the owner or full owner. A person may have a mortgage which means a bank owns most or all of the property but he can still, with their permission, sell it.

Search Results for 'vendor' in How to Really Buy a Property

"... walls and all the other frightening things in a surveyor's report might be serious, and when they are not; Why asking the vendor to carry out work is not always a good idea; Step by step guides explaining what should be happening, what can happen, and how to solve mole hills before..."
-------------------------------------------
"...This also confuses vendors, especially in the summer, when unrealistic expectations about how much their property is worth are common place. The market is dropping but they blame the agent and point to media reports telling them the market is rising. It's a bitter pill to swallow and rather than accept it many vendors change agents instead of taking advice. ..."
-------------------------------------------
"... for something specific bite your lip and accept it. By mid June many buyers' and vendors' minds are turning to summer holidays and the market is left with those properties that didn't sell along with a splattering of new homes coming on. There is less to choose from but it may be possible..."
"...There is less to choose from but it may be possible to pick up a bargain from a vendor who did not sell in the Spring and is feeling sorry for themselves. Buyers who did not find anything in the Spring are disappointed by the poor choice now available and are hesitant to make offers. We are now entering the phase that the professional investor operates in. ..."
"... In July and August the sunshine and holidays mean most buyers don't want to be spending their weekends and long evenings house hunting. Any vendors on the market must have a pretty good reason to sell so although choice will be very low, if it is a deal you are after, now is the time to get it. ..."
"... shared flat or a smaller property is not an attractive one. vendors are also back and choice is once again good. The same advice follows as the Spring because agents are already valuing higher in anticipation for a busy period. The intensity of the Autumn market often outperforms the..."
"... November and December are like June and July. If you want a bargain and don't need choice get out there. A low offer but the promise that the vendor could have the money by Christmas will be temptation and as most other buyers are saving for the festivities you can expect to negotiate a low price. ..."
-------------------------------------------
"... about £240,000. She made her offer and was at lengths to insist that her evidence was passed onto the vendor. The offer was rejected and three weeks later the flat went to sealed bids with two completely different buyers and exchanged a month after that for £302,000. Tanya's evidence..."
"...A house ideal for a well-to-do family had come onto the market in Kensington. Prices were generally stagnant and the press was full of stories about an imminent crash but this did not stop three parties all offering on the property at the asking price of £1.1 million. The vendor decided to ask for sealed bids. Each of the three parties would put forward their best offer and the highest bid would get the house. ..."
-------------------------------------------
"...The Angel Southside development in North London became available to buy nearly two years before the completion date. Although sales were slow nearly all flats were sold before the building was finished. Several flats then came onto the market for resale but all failed to sell for the price that some vendors had paid two years previously, despite a continually rising market it the area. It took another two years until the values in the local market rose enough to meet the prices some buyers paid. ..."
-------------------------------------------
"... nice people? Does the road get busier than this? Could the service charge rise? Will they leave the washing machine, curtains, etc? Why is the vendor moving? Would you buy this property? Will this property rise in value? What does it matter if the neighbours are really lovely people,..."
"...True Story - A Property on the Market for 14 MonthsA house had been on the market for fourteen months in Northchurch Terrace, N1. It was placed on the market at £650,000 but this proved too expensive at the beginning. The vendor was not interested in reducing the asking price as she had no mortgage on the property and no urgent need for the funds. ..."
"... on the market assumed they could get a low offer agreed. They only realised the asking price offer from the third party was successful when they were told it had been agreed and the vendor was not taking their interest any further. - Summary - There are good and bad estate agents out..."
-------------------------------------------
"...Living Outside the Country - If you have been living abroad or come from abroad there may be nothing wrong with the way you ran your finances but the bank will want to check. In some countries this is a fast proceedure, in others it can take weeks to complete. Because a survey on the property you hope to buy is not booked until the credit check is completed the vendor can get the impression that nothing is happening and decide to look for another buyer. ..."
"...Finally and crucially check early with each lender or financial adviser what documentation they will require and organise it now. Discovering you have lost your passport and need to order six months worth of bank statements is going to be of no interest to a vendor when you are in a contract race or competing in sealed bids. ..."
"...Firstly, if the mortgage product that is right for you will take ten weeks to be issued there is a good chance the vendor will get bored, or suspicious, and go in search of another buyer who can get a loan faster. The vendor usually suspects there must be something wrong with the buyers credit if things are taking too long. From your perspective you loose the property, the survey fee, the arrangement fee, legal fees and time. ..."
-------------------------------------------
"... and could leave you with many regrets. If the cheapy solicitor that you choose does not return calls or is overloaded with work there is an extremely high chance the vendor will loose confidence in you as a serious buyer and pull out of the deal. Remember above everything that swift..."
"...Once the local searches are back he then gathers all the papers together at one time. He looks at the contract, title and lease along with the local searches. He now raises enquiries all at once as this is easier and takes less of his time. These will take 2-4 weeks, often depending on the efficiency of the managing agents, the local council and the vendors solicitor. ..."
"...Traditional solicitors are more likely to be found in rural areas of the UK where, to be fair, there is less urgency on a sale and they may save you money. They are not to be used for purchases in a major city or booming markets where their slow pace can have the vendor doubting how serious you are. ..."
"...One, two or three solicitors working in an office may seem all very cosy. This is the traditional model but in a rising market with much activity they can very quickly become overloaded with work. Holidays, illness or someone leaving only compounds this problem. They may have been recommended to you by a friend or a colleague but this will be little consolation if they are slow and you get gazumped or the vendor pulls out, frustrated at a lack of process and assuming you are not serious about the purchase. ..."
"...When your solicitor disappears off on his spring break he will either leave your case to one of his partners or hire a locum (a temporary solicitor). They may want to read over the paperwork again and, knowing that it is them who will take the fall for any issues they allowed to get through at exchange, raise some more enquiries. The result is that when you thought you were exchanging on Tuesday morning, suddenly your solicitor wants a bunch of new questions answered. Depending how rocky the transaction has been to date this can often be the straw that breaks the camel's back for the vendor. ..."
"...Make sure the solicitor you choose has a colleague (not a temporary solicitor drafted in from somewhere else) who will handle your case in his absence and that within the firm there are agreed protocols on what questions must be answered before exchange to avoid any nasty delays. Most importantly check your solicitors holiday plans at the start of the transaction and make the vendor and/or agent aware so no one is taken by surprise. ..."
"...A solicitor needs some sort of local knowledge or to work with colleagues that do. Otherwise they will not be able to picture the type of property you are buying and this will lead to irrelevant inquiries being raised that frustrate and annoy the vendor. They will also not have contacts within the area (such as the local borough council) which mean that certain enquiries cannot be resolved instantly. ..."
"... architects original drawings. The vendor thought that the buyers were probably not serious and considered whether to withdraw the papers and look for a new buyer. He only backed down after the buyers interceded and asked their solicitor to drop the enquiry. - The Conveyer Belt Method -..."
"... then raise further enquiries where their standard systems have not closed off the gaps. This system is slow and so annoying to the vendor that they often feel the sale is going nowhere and withdraw. It is because of the way they work that they are efficient in terms of 'cost per case'..."
"...Many people base the word "through" on how many questions and enquiries their solicitor raises but has no idea if these are actually relevant. There is a fine line between being thorough and going over the top to cover any eventuality under the sun. Too many enquiries that are seen by the vendor as irrelevant can simply lead him or her to believe that you are not a serious buyer and pull out of the deal. ..."
-------------------------------------------
Chapter 13: Your Own Homework
"... at walk in centres operated by the local council. Some now even keep their databases on the internet for public access. - How Much Did the vendor Buy the Property for? - The last time a property was sold (if this happened within the last decade), and the value it sold for, are listed on the..."
"... what has happened in the market since then. If you are aware of major improvements (has it been renovated by a developer, has the current owner added an extension or converted the loft, etc.) Ask the selling agent or the vendor if you are unsure. Note that this can sometimes be a case of a..."
"...Note that this can sometimes be a case of a little knowledge being a dangerous thing. If you know the property was purchased twelve months ago for £100,000 and is now on the market for £200,000 this does not mean it is overvalued even if you find it hard to accept the profit that the vendor is making. ..."
-------------------------------------------
"...Even more jaw-dropping is that the law requires an Estate Agent to pass on any offer you make to a vendor, in writing, within twenty-four hours. You do not have to prove that you can actually back this offer up with any sort of funding. Beware however that they call this type of offer, to the vendor, "reckless" and so it does you no favours at all as a buyer. ..."
"... while you are out at work! When it's put this way it suddenly begs the question, why doesn't every agent qualify their applicants? This is covered in Why vendors Choose Bad Agents. For now its worth knowing the two documents that are requested the most: An Agreement in Principle or Pre..."
"...Originally this term arose to mean exactly what it said, "A buyer who has nothing to sell because this is their first purchase". Over time it has become associated with anyone who does not need to sell in order to buy, be this their first or their twentieth property purchase. It's worth letting any agent know if this is your situation as you will be much more attractive to many vendors. ..."
"...Your advantage is that, should you make an offer, the vendor is only reliant on you and your solicitor to get the sale through. If you have something to sell, even if an offer has been agreed on it, there is still twice as much to go wrong and the vendor you wish to purchase from knows absolutely nothing about the stability of your buyer. ..."
"... In recent years it has become increasingly popular for home owners to sell and move into rented accommodation before they start looking for something to buy. Many have realised the cost of renting is often outweighed by the lower offers that are accepted by vendors from First Time Buyers. ..."
"...Chain Free Property: A vendor who will sell his property and move out as soon as the solicitors sort out the paperwork and the buyer has the funds in place. This is different from the chain situation where a vendor accepts an offer subject to him finding a place to buy. Chain Free Properties are extremely attractive as any purchase should only involve five parties - you, the vendor, the lender and the two solicitors. The fewer people involved and the shorter the timescales, the more likely it is that everything will happen successfully ..."
"... time to make an offer. Offering is much more of an art than most buyers realise and one that is well put together can actually result in the vendor accepting a lower offer than they might otherwise. The exact way to do it is covered in How to Really Make an Offer. For the moment you should..."
"...For the moment you should be aware that any offer made via an agent must be passed on in writing to the vendor within twenty-four hours. Any offer quite literally means any offer. The only exception is where the agent has written instructions from the vendor not to pass on an offer below a certain value. ..."
"... to pass on an offer below a certain value. If you are in doubt you can always knock on the door of the vendor and check he has received the offer but be aware that, if the offer was low, you may have to sustain a fair amount of verbal abuse! If your offer is accepted you have absolutely..."
"... obscenities! From the vendors point of view he is also not committed to do anything. He may go out for a spot of lunch, decide your offer is actually too low after all and call the agent to reject it (more obscenities!). What is acceptable today may be unacceptable tomorrow. An accepted..."
-------------------------------------------
"... wars and sealed bids; Why defining your offer can save you money; What should be in your offer apart from the price; How to make a low offer seem attractive to a vendor; Why non-refundable deposits rarely work. - Listening to the Estate Agent - If you have read everything in the..."
"...If you have read everything in the previous chapters you will be pretty worldly wise as to how to pitch your offer. You will know to take into account if you are in a rising or falling market along with the motivations of the vendor and so there should be no need to repeat what has already been said. Many buyers suffer some paranoia about letting the agent know what their thoughts are. In a large part they are concerned that the agent will make them go to their absolute maximum budget and to the large part they are actually wrong. ..."
"... Offer and When - This is the quandary many buyers find themselves in. They want to feel they have got a deal but at the same time they don't want to loose the property. Perhaps the biggest mistake buyers make is to spend too much time concentrating on the vendor's position. But the vendor's..."
"... buyers make is to spend too much time concentrating on the vendor's position. But the vendor's position, or how long the property has been on the market, must be balanced with your competition from other buyers. If a vendor is desperate they will still achieve the asking price (or more) if..."
"... buyers. If a vendor is desperate they will still achieve the asking price (or more) if the market is booming. A property may also have been on the market for over a year but if prices have been rising the true value of the property may have been realised just as you start searching. ..."
"... just as you start searching. Hopefully you will have some idea of the current market (rising or falling) and the vendors motivations from your discussions with the negotiator. You will also need to balance this with your own desire for the property. The graph below represents the..."
"... that you have seen then there is nothing to loose in making a low offer. You want to pitch this at such a level that: you do not alienate yourself completely from the vendor you do not alienate yourself from the agent you leave yourself some room for manoeuvre In any normal market..."
"... for manoeuvre In any normal market conditions this should never be more than 10% below the asking price. To go further may mean the vendor will want nothing further to do with you as they feel insulted. You may increase your offer later but he will refuse it on principle. A very low offer..."
"... it on principle. A very low offer may mean that you embarrass the agent. The vendor will feel the agent is not doing his job. As such the negotiator will then be reluctant to show you further properties and move you to the bottom of his mental list of priorities. - Paying the Asking..."
"...In a fast moving market seriously consider this. It is an extremely strong way of saying to the vendor, "I like your property, I am a serious buyer and I am prepared to pay what you want". The only downside, for a property that has only just come onto the market, is that the vendor may think he has undervalued the property and that he could get more if he waits. As such impress upon the agent that they should tell the vendor how long you have been looking, how many properties you have seen and why this property is specifically right for you. In other words the vendor should understand that this is not a lucky break where someone logged onto the net and thought, what an undervalued bargain! ..."
"... In exchange for offering the asking price you should expect, and request, that the vendor withdraws his property from the market although they may not be prepared to do this until you have instructed a solicitor and paid for a survey (i.e. spent some money yourself to show you are serious). ..."
"...No one ever starts by making an offer above the asking price but very often there may be more than one offer at the asking price. In this instance a good agent will take the matter to sealed bids whereas a bad agent will start a bidding war. If it sounds like you are heading for a bidding war try and persuade the agent or the vendor to use sealed bids. ..."
"...Be aware that it is not always the highest bid that gets the property. One party may offer £302,000 but they themselves might be in a chain. If another party offered £298,000 and was chain free the vendor may go for what they see as the 'safer' option even though they will loose a potential £4,000. ..."
"...A two bedroom mansion block flat had been on the market for five months. The vendor had verbally accepted an offer £5,000 below the asking price of £137,500. Another party then offered to pay the asking price. The original buyer was offered the chance to match this which they did and so the vendor, faced with two very similar offers decided to go to sealed bids. ..."
"...The original buyers had already, to some extent, damaged their standing in the vendors eyes by suddenly coming up with an extra £5,000 but they then compounded this by saying their sealed bid would be £137,500, the same as the asking price and their current offer. The other party offered £341,700 and their offer was accepted. The original buyers then came back and said they would be prepared to offer £343,000. It was too late. ..."
"...Although they were putting even more money on the table the vendor could not feel certain that they were stable because they could not make up their mind and only seemed to bid more when forced by another party, not because they truly felt the property was worth that to them. The vendor suspected they may try to renegotiate later and refused their offer. ..."
"... Explaining clearly who you are from the start is a huge asset in the eyes of the vendor, even if he did not realise it or want it before. You are also likely to take the average incompetent or amateur agent by surprise but it is a sure root to getting a good, sound offer agreed. Apart..."
"... number is ... You should provide as much information as possible so that the agent can paint the most rosey picture of you as possible to the vendor. The rosier the picture, the more likely you will get a good offer agreed and the vendor will want to deal with you only. Show your serious..."
"... works in your favour. Being open and clear - the more the agent can tell the vendor, the more your offer will shine. If the agent can say, "This is a cash buyer and he has shown me his bank statement as proof" this is much better than "He says he is a cash buyer". Laying down timescales -..."
"... Laying down timescales - these can be changed later or used as part of your negotiation but it will show the vendor you have thought the entire purchase through. It will also avoid arguments and misunderstandings later and remind the vendor that he also needs to think about this. ..."
"... as simple as a washing machine. By doing these simple things the vendor knows exactly where you are coming from and treats you as a serious buyer. It also greatly reduced the possibility of arguments after you have spent money on solicitors and surveys. When you are considering the..."
"...The vendor could, at this stage, come back to you and say he is interested in considering your offer but would not move out until he has found something to buy himself. You could then counter that by offering to pay more if he will consider moving out and renting or you could agree the exchange date but then offer a long completion date (say 6 months later) to allow the vendor to find and buy. In this way you will lock your property in and have a definite move in date, even if it isn't as soon as you might want. ..."
"... acceptable offer you should expect: that the property is taken off the market that you will get the curtains and carpets that the vendor will leave the built in cooker that the vendor will want to move out at some point Nothing could be further from the truth and so pitching an offer in..."
"... is taken off the market that you will get the curtains and carpets that the vendor will leave the built in cooker that the vendor will want to move out at some point Nothing could be further from the truth and so pitching an offer in a certain way should ensure your expectations are..."
"...It is likely to be 'No!' but then you will be able to increase your offer with strings attached. You could say, "£245,000 as long as the property is taken off the market". It will make the vendor feel that they have been able to increase your offer in return for something they were probably going to do anyway. ..."
"...If this does not work you can then say, "OK, £250,000 as long as the property is taken off the market and the carpets and curtains are included". Again it's something you would have insisted on anyway and something the vendor probably didn't want anything for. He will go away pleased that he got an extra £10,000 for simply taking the property off the market and throwing in some old carpets and curtains while you get the property you want at the price you want. ..."
"...Many buyers are often at pains to show how serious they are about the property they have offered on. As such they offer to pay a "non-refundable deposit" to the vendor as a sign of their honourable intentions. Estate agents are not allowed to handle these transactions so they must be done through the solicitors. ..."
"...Your solicitor is likely to be against such an idea. To start with it may seem like a great way to send positive messages to the vendor but any such agreement is likely to be complicated. If in the process of buying it is discovered that, for example, the property has subsidence or the house next door has got planning permission to double in size and block out all the sunlight to your garden, it would be fair for you to pull out of the sale. ..."
"...As such your non-refundable deposit would have to be subject to these and a whole range of other problems. Before you know it your non-refundable deposit is subject to contract and subject to survey and of no security whatsoever to the vendor. Furthermore it will have taken so long to agree the terms of a non-refundable deposit that no work on the actual purchase will get done. This is not a healthy scenario as we will see in Time Costs Deals ..."
"...Many agents are poorly experienced or badly trained and not even they know how to really put up an offer. But the way you do it and the way you present yourself can make a substantial difference to the final price you pay. Sometimes it may allow you to get a sale agreed at a price the vendor would not previously have accepted, sometimes it may mean the vendor will sell to you and not someone else (even if the other party is offering more). ..."
"...Put yourself in the shoes of the solicitor and consider their position. The more the buyer shines in terms of the way they have prepared for the purchase, the more comfortable the vendor is going to feel and the more likely they are to say to themselves, "I wasn't thinking of selling at that price but I will because I feel safer that this buyer is offering a low stress transaction for me."..."
-------------------------------------------
"... process should be as fast as possible; Who talks to who and how; Why dealing through an agent can help; What are the responsibilities of the buyer, the vendor and the solicitors; Why solicitors argue with each other; The pitfalls at each stage; Explanations of the documents and..."
"... solicitors argue with each other; The pitfalls at each stage; Explanations of the documents and terminology; When the vendor's solicitor can cause the vendor stress; What is a complete document, and what is not. Before you can know what really happens, it is essential to..."
"... Before you can know what really happens, it is essential to understand what is supposed to happen because sometimes it does! If you are dealing with an Estate Agent, Solicitor or vendor who is new to the business this chapter is the set of events that they believe should occur. ..."
"...Once your offer has been agreed with the agent (or directly with the vendor if you are buying privately) there should be no need to have any contact with the agent or the vendor. Each party has a specific number of actions that they must take and theoretically this should all occur via the solicitors. Some solicitors feel so strongly about this that they refuse to accept calls from estate agents! It is how these actions are undertaken and their results that cause disagreement because there is no definitive protocol for buying and selling. ..."
"...It is because of this that there are regular arguments between solicitors so it is often useful to have a second line of communication. This is either via the agent or, in the case of a private sale, directly with the vendor. Nothing that is spoken about in these secondary lines is binding until both solicitors are aware of it and it has been written into the contract but such discussions can be faster and more accurate as questions and answers are passed through fewer parties. It is worth knowing that: ..."
"...Agreed offers through agents tend to have a better chance of success because small queries need only be passed via one party for answers. When emotions become heated the agent is the filter who can remove the obscenities and act as an objective go between. A good agent will also remove any comments you make that he feels may be misinterpreted by the vendor before passing messages or queries on. ..."
"...Privately agreed offers are more likely to fail for exactly the reason explained above. The buyer talks to the vendor and says things they may not truly mean or makes small comments that are taken out of context (and vice versa). You may tell a vendor, for example, that you can't wait to move in and add a fantastic conservatory. The vendor realises he only accepted your offer because he thought it was the top of your budget. Now he knows you have extra cash he begins to think he has undersold the property and pulls out of the transaction. Innocent comments, profound results. ..."
"... of Communication (once the sale price is agreed) You, the Buyer «» The Estate Agent «» The vendor «» Your solicitor «» The vendor's solicitor «» «» Private Sales Only «» The parties officially..."
"... the sale price is agreed) You, the Buyer «» The Estate Agent «» The Vendor «» Your solicitor «» The vendor's solicitor «» «» Private Sales Only «» The parties officially involved after a sale price is agreed are: You, the..."
"... of Communication (once the sale price is agreed) You, the Buyer «» The Estate Agent «» The vendor «» Your solicitor «» The vendor's solicitor «» «» Private Sales Only «» The parties officially..."
"... the sale price is agreed) You, the Buyer «» The Estate Agent «» The Vendor «» Your solicitor «» The vendor's solicitor «» «» Private Sales Only «» The parties officially involved after a sale price is agreed are: You, the..."
"... a Property Purchase - As a buyer your responsibilities are to: Instruct a solicitor to act on your behalf Specify an exchange and completion date that can be agreed with the vendor Raise the finances to purchase the property Organise for professionals to inspect the property Sign the..."
"... Dates - It seems obvious to agree a date for the Exchange of Contracts. This is the moment that you agree to definitely buy the property and the vendor agrees to definitely sell it. Up to this point the sale is only agreed subject to contract, and often subject to survey. Subject to..."
"...Exchange of Contracts is not the date at which you take possession of the property. It is the date which you agree Completion. Completion is the date when the vendor must be out and you can move in, the property legally becomes yours. Completion can take place on the same day as exchange or months afterwards. ..."
"...Both parties believe it is "obvious". The vendor may, for example, have chosen a solicitor in Wales. His solicitor has told him that it normally takes about twelve weeks to move from agreed offer to exchange. In the meantime your solicitor in London tells you there should be an exchange within three weeks. Both you and the vendor sensibly expect that your respective solicitors will have said the same thing and plan your lives accordingly. Fireworks will occur later! ..."
"...Neither party actually wants to talk about it. You may be concerned that if you express a wish to exchange quickly the vendor will perceive you as a desperate buyer in absolute love with their property. This could lead to them being slow or lazy in providing paperwork, relaxed that you are not going anywhere. The vendor may not want to tell you that he wants a rapid exchange because he does not want to appear desperate. He may believe that this will encourage you to attempt a renegotiation of the price before exchange. ..."
"...One party is scared to upset the other. This often happens in a market where the 'Balance of Power' is not even (see Chapter 18 by the same title). You may be desperately in love with the property or prices may be rising quickly. As such you do not want to upset the vendor by rushing him and so you tip toe round the issue waiting for a sign. ..."
"...The deposit is seen as a way of tying the buyer in and insuring the vendor will have some compensation should you disappear. Zero percent deposits are therefore usually only acceptable if you are carrying out a simultaneous exchange and completion. This is often the case with one hundred percent mortgages or where the property is empty and the buyer wants to get in fast. ..."
"... accept the work. Once accepted this status is known as 'survey instructed' The surveyor calls the agent or vendor to organise access to the property. Once a time has been agreed the status becomes 'survey booked' The surveyor may either have been instructed to go into the property or..."
"... the pipes. As a buyer it is generally expected that you will organise any further inspections beyond the survey yourself. Most buyers want to do this anyway rather than let the vendor choose someone. Who pays (although some inspections are free) is usually a thorny issue. Any good estate..."
"...Neither you nor the vendor can agree who will pay for a specific specialist to check the property. As an example the property may need a structural engineer to assess it. The vendor argues that you should pay for it because it will be a document useful to you when you come to sell (the vendor nearly always assumes the situation is ridiculous and their property cannot possibly be structurally unsound). You argue the vendor should pay because you have already spent money on the survey and it is up to the vendor to prove his property is stable. Both parties have justifiable arguments but it doesn't help the process move anywhere! ..."
"... arguments but it doesn't help the process move anywhere! Both you and the vendor have quotes carried out but they vary dramatically so it continues to remain unclear whether or not there really is an issue to be resolved - Signing the Contract - While you are busy making sure the..."
"... call you again once he receives it to confirm that you still want to exchange. He will also need: To have a deposit in his bank account to give to the vendor's solicitor (see below). To know the date you want completion to occur on Once you give the green light he will call the..."
"... to the vendor's solicitor (see below). To know the date you want completion to occur on Once you give the green light he will call the vendors solicitor and effect the exchange of contracts. What Can Go Wrong The contract gets lost in the post and your solicitor did not keep a..."
"...As discussed in Specifying Exchange and Completion Dates (see above) your solicitor will usually need a cash deposit to give to the vendors' solicitor when exchanging contracts. The only exception is when you are using a one hundred percent mortgage or the vendor has agreed that you will provide a deposit of zero percent. ..."
"... to opt out of certain requirements such as local searches (see below). Your solicitors responsibilities are to: Check the set of paperwork sent by the vendor's solicitor Request any further enquiries from the vendor's solicitor Apply for searches Check your mortgage offer Issue you..."
"... (see below). Your solicitors responsibilities are to: Check the set of paperwork sent by the vendor's solicitor Request any further enquiries from the vendor's solicitor Apply for searches Check your mortgage offer Issue you with a report Exchange Contracts Complete - Checking..."
"... the Paperwork - Your solicitor will receive a set of papers from the vendor's solicitor. If the vendor is well prepared these will arrive in one parcel. If not they will be forwarded to your solicitor as soon as the vendor can get hold of them! The documents are as follows: The Contract -..."
"...The Contract - this is a short document and basically says that you agree to buy and the vendor agrees to sell the property. The contract is only signed by the vendor and you once all the other checks have been made. Once you have signed your part and the vendor has signed theirs the documents are exchanged between the solicitors. Hence this moment is known as Exchange of Contracts or more often as simply the Exchange. It is the moment of no return when you must buy and they must sell even though, usually, no full payment has been made. The first contract that your solicitor receives is usually known as the Draft Contract as it has not yet been agreed. ..."
"...The Title Deeds - this document is only held by the person who owns the property. In most cases this is not actually the vendor but the lender that he has his mortgage with. The vendor's solicitor will ask the lender to send the title deeds to him. The lender can refuse or place conditions on the request if they are concerned the property will be sold for less than the current mortgage balance and the vendor cannot prove where the shortfall will come from. ..."
"...Seller's Questionnaire - this is a list of questions that are answered by the vendor. It includes declarations that there are currently no legal disputes occurring with the neighbours, who is responsible for boundaries, if there are any current guarantees, who is supposed to carry out maintenance work, etc. The vendor is only required to complete it "to the best of their knowledge". As such they can answer "Don't Know". If it can later be shown that they misled you it is possible to claim compensation. This form has many names and could be titled Seller's Property Information Form, Seller's Pack, etc. ..."
"...Fixtures and Fittings - this specifies exactly what the vendor intends to leave. It should confirm any agreement you made at offer stage such as including the curtains and carpets. They may also list items which they are prepared to sell to you should you want them. These could be anything from shower curtains to kitchen appliances. ..."
"... etc. Planning Consents - these are only required if the vendor or some previous owner has made changes to the property that required planning permission. An example might be a two storey extension added to the rear of the property but could even include a skylight added in the loft. Building..."
"...Building Regulation Approval - again these are only required if the vendor or some previous owner made changes to the property that are deemed to be structural and so should be inspected by the local borough's Building Control department. These can include changes that have been made inside the property and so did not require planning consent. An example could be where two rooms have been made into one and the wall that was removed was a structural part of the property. ..."
"... was a structural part of the property. The Lease (Leasehold and Share of Freehold Only) - This comes from the vendor's solicitor and defines what the freeholder expects from you as a leaseholder. See Chapter 14: Viewing Properties and Making Offers Service Charge Accounts (Leasehold Only) -..."
"...Service Charge Accounts (Leasehold Only) - where you are buying a leasehold property it is important to gain an idea of how much the managing agents charge every year to maintain and run the property. These charges could include lift maintenance, cleaning, lighting, care of a communal garden, even looking after the TV aerial and satellite dish. The most important factor is that these charges are consistent and reasonable with what is being provided. As such your solicitor will ask for at least the last three years accounts to confirm this or spot any trends that you should be aware of. Any debts that the vendor may have with the managing agents are identified here and are extremely important. Service Charge debts are based on the property. If you buy when there are outstanding debts they will become your responsibility. ..."
"...Ground Rent Receipts (Leasehold Only) - the ground rent is a charge made by the freeholder. Again the last three years receipts will be sought by your solicitor in order to make sure the premiums are not excessive or rising sharply. Any debts that the vendor may have with the freeholder are identified here and are also extremely important. As with the service charge, ground rent debts are also based on the property. If you buy when there are outstanding debts they will become your responsibility. ..."
"... of that freehold must agree to issue you with shares. What Can Go Wrong The problems with paperwork fall into issues at the vendor's solicitors side and issues that your solicitor will have. The latter are: Your solicitor is old fashioned and argues that, despite having some of the..."
"... down the process and adds to the risk of the purchase falling through Your solicitor does not believe the contract is legally adequate and gets into an endless argument with the vendor's solicitor over the wording. There is no definitive protocol for what a seller's pack should look like..."
"... look like and your solicitor believes that the one provided is inadequate. The buildings insurance on the property may not be adequate for the lender you have chosen even though it was fine for the vendor's lender. The guarantees on work carried out on the property are from companies no..."
"... to provide any further information Leasehold only: The vendor owes the managing agents money but is refusing to pay it because he is in dispute with them. An example may be that he has withheld the cleaning charge because no cleaning has occurred! Leasehold only: The vendor owes the..."
"... may be that he has withheld the cleaning charge because no cleaning has occurred! Leasehold only: The vendor owes the freeholder money but is refusing to pay it because he is in dispute with them. Leasehold only: The freeholder is absent (has gone missing and no one knows where they..."
"... With so many pitfalls in the documentation it is not surprising that your solicitor may want to ask further questions of the vendor, his managing agents or his freeholder. Much of this comes from the fact that there are no definitive protocols for the forms and documents that pass between them. ..."
"...In a perfect world they would ask, the vendors' solicitor would reply, and you could get on with buying the property. It's not a perfect world and solicitors are also a proud race. Taking criticism from another solicitor is not their forte. They also all tend to have their own methods of working and often scorn those of their counterparts. ..."
"...The most common issue is that your solicitor does not believe a document provided by the vendor's solicitor is legally adequate. To the vendor's solicitor this is a smack in the face and an insult to his professional capabilities. All too often the process can get bogged down in an, "Oh yes it is" - "Oh no it isn't" circular argument. The most fiercely debated are Deeds of Variation, sellers packs and fixtures and fittings lists. ..."
"...If your solicitor is not based in, or familiar with, the area in which you are buying they may not know about local regulations. As such they request documents that do not exist. The vendors' solicitor does not reply for exactly that reason but your solicitor sits and waits for the document that isn't coming. The most common is planning permission. Many solicitors are unaware, for example, that you can build an extension on a freehold house in certain conservation areas up to ten percent of the volume of the original house or fifty cubic metres (whichever is greater) . As such they waste time swapping letters in an endless attempt to find planning consent on something that requires no approval. ..."
"...Your solicitor is lazy (or some might argue clever) and has created a list of enquires that need answered in order to satisfy every lender and client. He does not read the documents that have been sent through but simply sends this enquiry form off. The vendor's solicitor believes your solicitor is simply trying to get him to do all the work by trawling through the documents and extracting the relevant facts. The vendor's solicitor only fills in replies to the questions not answered in the original paperwork. Your solicitor claims that he has not replied to all the enquiries. He claims that the remainder of the enquiries are in the original documentation and both sides refuse to do anything! ..."
"...Your solicitor is only able to do this once he has your part of the contract back and signed by you. He will also need to be in cleared funds (see above). With this he is ready so long as the vendor has signed his part and returned it to his solicitor. Despite having all of this he will probably wait for your final verbal instruction before exchanging. ..."
"... to affect the exchange. Your solicitor goes on holiday or is off ill but there is someone else available. They check the paperwork and decide there are some enquiries missing that they want answered and refuse to exchange until the vendor's solicitor replies. The money you gave to your..."
"... cleared into his account. - Completion - When Exchanging Contracts all parties agree the completion date. Completion is the day that you pay the balance of any money to the vendors solicitor and legally take possession of the property. In order to complete successfully your solicitor..."
"...Your solicitor will send the money to the vendor's solicitor via an electronic cash transfer system. This process can take anything from a couple of minutes to a few hours depending how busy the wires are. Your solicitor will be able to tell you the time the money was sent but this does not mean anything until the vendor's solicitor confirms it has been received at his end. ..."
"... is off ill on the day of completion and it is difficult to find someone else to handle the transaction Your solicitor sends the money too late for it to be received by the vendor's solicitor Your solicitor sends the money but it is not received by the vendor's solicitor due to technical..."
"... solicitor sends the money too late for it to be received by the vendor's solicitor Your solicitor sends the money but it is not received by the vendor's solicitor due to technical difficulties Your solicitor sends an inadequate sum of money to the vendors solicitor and this only..."
"... is not received by the vendor's solicitor due to technical difficulties Your solicitor sends an inadequate sum of money to the vendors solicitor and this only becomes clear too late in the day to organise another transfer. The Vendor's Solicitor in the Property Buying Process - Once..."
"... sum of money to the vendors solicitor and this only becomes clear too late in the day to organise another transfer. The vendor's Solicitor in the Property Buying Process - Once officially instructed by the vendor the role of this solicitor is to: Send the standard set of paperwork to..."
"... late in the day to organise another transfer. The Vendor's Solicitor in the Property Buying Process - Once officially instructed by the vendor the role of this solicitor is to: Send the standard set of paperwork to your solicitor Reply to any further enquiries your solicitor..."
"... is to: Send the standard set of paperwork to your solicitor Reply to any further enquiries your solicitor has Send the approved contract to your solicitor and to the vendor Exchange Contracts Complete - Sending the Paperwork - The vendors solicitor has to collate the paperwork..."
"... Contracts Complete - Sending the Paperwork - The vendors solicitor has to collate the paperwork described in Your Solicitor above. These are sourced from various parties and so tend to arrive at different times. The Contract: Every solicitor usually has their own version of..."
"... some changes. The Title Deeds: These will either come from the vendor or the lender (if there is currently a loan secured on the property). If it is the latter the solicitor will need the mortgage lender's name and account number as well as written permission to apply for them. The Sellers..."
"... the solicitor will need the mortgage lender's name and account number as well as written permission to apply for them. The Sellers Questionnaire: From the vendor (see below). Fixtures and Fittings List: From the vendor (see below). Building Insurance: From the vendor or if he does not have it,..."
"... number as well as written permission to apply for them. The Sellers Questionnaire: From the vendor (see below). Fixtures and Fittings List: From the vendor (see below). Building Insurance: From the vendor or if he does not have it, from the insurance company once the vendor provides him..."
"... below). Fixtures and Fittings List: From the vendor (see below). Building Insurance: From the vendor or if he does not have it, from the insurance company once the vendor provides him with the company name and policy number. Guarantees: From the vendor (see below). Planning Consents (where..."
"... or if he does not have it, from the insurance company once the vendor provides him with the company name and policy number. Guarantees: From the vendor (see below). Planning Consents (where applicable): From the vendor or, if he does not have them, from the local council. Building..."
"... him with the company name and policy number. Guarantees: From the vendor (see below). Planning Consents (where applicable): From the vendor or, if he does not have them, from the local council. Building Regulation Approval (where applicable): From the vendor or, if he does not have them,..."
"... applicable): From the vendor or, if he does not have them, from the local council. Building Regulation Approval (where applicable): From the vendor or, if he does not have them, from the local council. The Lease (Leasehold and Share of Freehold only): From the freeholder or freehold..."
"... little wonder that it can take time and sometimes even prove impossible. The vendors' solicitor has only just been instructed and it takes weeks for all the documentation to be collated and forwarded to your solicitor The vendors solicitor is old fashioned and refuses to send on any paperwork..."
"... it takes weeks for all the documentation to be collated and forwarded to your solicitor The vendors solicitor is old fashioned and refuses to send on any paperwork until he has the full set of documentation The title deeds are with a lender who has lost them which causes weeks of delay. It is..."
"... causes weeks of delay. It is surprisingly common! The sale price is too low and the lender, not convinced the vendor can cover the shortfall between the outstanding debt secured on the property and your offer, refuses to release the title deeds The Vendor has the title deeds but cannot find..."
"... secured on the property and your offer, refuses to release the title deeds The vendor has the title deeds but cannot find them or has lodged them with a solicitor who has since gone out of business or closed down There has been building work that required planning consent but none has been..."
"... to Enquiries - As described in Your Solicitor this should be straight forward but for the disagreements over: What the vendor's solicitor thinks has already been answered What the vendor's solicitor thinks is important to answer The vendor's solicitor always starts the transaction..."
"... be straight forward but for the disagreements over: What the vendor's solicitor thinks has already been answered What the vendor's solicitor thinks is important to answer The vendor's solicitor always starts the transaction as the most relaxed party. He hopes that he will send off the..."
"...The vendor's solicitor always starts the transaction as the most relaxed party. He hopes that he will send off the paperwork that he believes your solicitor requires and wait for a call to exchange contracts. Ask a vendor's solicitor if he is ready to exchange and, so long as he has sent out the original set of paperwork, the answer is always, "Yes!" ..."
"... the answer is always, "Yes!" This is a natural response as he actually does not have to collate any answers in any format for either his client or a lender. It does sometimes, however, lead the vendor to believe that the buyer is being awkward. Imagine if every time you called your..."
"... solicitors become deadlocked on a disagreement over the wording of a document The vendor's solicitor refuses to answer enquiries that he claims are already covered by the original paperwork and a stalemate follows The Vendor's solicitor tells the vendor some enquiries are "not relevant" or..."
"... claims are already covered by the original paperwork and a stalemate follows The vendor's solicitor tells the vendor some enquiries are "not relevant" or "too picky" and persuades the vendor to instruct him not to reply The Vendor's solicitor winds the vendor up by stating how ready he is to..."
"... are "not relevant" or "too picky" and persuades the vendor to instruct him not to reply The vendor's solicitor winds the vendor up by stating how ready he is to exchange every time the vendor calls - Sending the Approved Contracts - Once the arguing has subsided and both sides have..."
"... vendor calls - Sending the Approved Contracts - Once the arguing has subsided and both sides have agreed that all enquiries have been cleared up the vendor's solicitor will produce the final contract and send it to your solicitor What Can Go Wrong For once this is a procedure that..."
"...When your solicitor has your signed contract and funds for the deposit, and the vendor's solicitor has the vendor's signed contract, exchange of contracts can take place. The money is sent electronically between the solicitors and they verbally agree that exchange has taken place at a specified time (say 3.45pm). ..."
"... time (say 3.45pm). What Can Go Wrong The vendor thinks he has signed everything he needs to sign and disappears off on holiday, assuming his solicitor will exchange. He does not have the vendor's final verbal instruction and so does not do it. The vendor's solicitor goes on holiday or is..."
"... exchange. He does not have the vendor's final verbal instruction and so does not do it. The vendor's solicitor goes on holiday or is off ill and there is no one else available to affect the exchange - Completion - There is very little for the vendor's solicitor to do on the big day..."
"...There is very little for the vendor's solicitor to do on the big day and it is not that essential that he is present as long as there is someone in the office that can confirm the balance of funds has arrived. In many larger law firms the matter is dealt with by clerks as it is simply a yes or no answer. ..."
"... no answer. What Can Go Wrong There is no one available to confirm funds have been received The vendor's solicitor does not receive the payment sent by your solicitor due to technical problems - The Vendor in the Property Buying Process - Once the vendor has agreed to accept your..."
"... have been received The vendor's solicitor does not receive the payment sent by your solicitor due to technical problems - The vendor in the Property Buying Process - Once the vendor has agreed to accept your offer for their property his responsibilities are to: Sign the Estate Agents..."
"... sent by your solicitor due to technical problems - The Vendor in the Property Buying Process - Once the vendor has agreed to accept your offer for their property his responsibilities are to: Sign the Estate Agents Terms and Conditions (if using an agent) Instruct a Solicitor Agree to an..."
"...This is actually an action that the vendor should carry out the moment he decides which agent or agents are going to market his property. For Estate Agents it is a risky business to show or advertise a property without this document being signed because the property owner could sue for wrongful representation or damage to the property caused, even accidentally, when a prospective buyer is shown round. ..."
"... the door first. The Terms must be signed before solicitors are instructed or the agent may risk loosing their fee. The vendor could argue he never agreed to pay the agent anything and with the two solicitors talking, there really is no need for the agent anyway. What Can Go..."
"... talking, there really is no need for the agent anyway. What Can Go Wrong The vendor has agreed to your offer but is not in the country at the time so delays occur while terms are sent, signed and returned The Vendor gets into an argument with the agent over the fee and decides not to..."
"... at the time so delays occur while terms are sent, signed and returned The vendor gets into an argument with the agent over the fee and decides not to accept your offer after all (usually because he thought the fee was lower) Although the vendor has agreed to your offer and a fee, he decides..."
"... your offer after all (usually because he thought the fee was lower) Although the vendor has agreed to your offer and a fee, he decides that he has not been impressed by the agent and wants to renegotiate this fee first - Instructing a Solicitor - A vendor will have many of the same..."
"... - Instructing a Solicitor - A vendor will have many of the same problems as you do in finding a solicitor. Once the vendor has found someone they are comfortable with that solicitor will send out documents for them to complete. The vendor must return: Details of where the Title Deeds..."
"... found in Your Solicitor above What Can Go Wrong The vendor has not instructed a solicitor and it now takes three weeks to find one and furnish him with the necessary paperwork to start the process. They did not do this earlier because: they were not convinced the property would sell at..."
"... they should do so The Title Deeds are with a lender and even after the vendor has completed the necessary paperwork it takes two weeks for the lender to send them to his solicitor (so long as they can find them and lenders loosing title deeds is surprisingly common) The Title Deeds were..."
"... loosing title deeds is surprisingly common) The Title Deeds were lodged with a solicitor who has since closed down or gone out of business. Delays are inevitable while the vendor tracks down what happened to the documents held by the solicitor The vendor has kept the Title Deeds but can't..."
"... of business. Delays are inevitable while the vendor tracks down what happened to the documents held by the solicitor The vendor has kept the Title Deeds but can't remember where The vendor is unsure about questions on the sellers' questionnaire and it takes time to find the answers (such as,..."
"... Title Deeds but can't remember where The vendor is unsure about questions on the sellers' questionnaire and it takes time to find the answers (such as, for example, who is responsible for the garden fence which borders his property with his neighbour's) The vendor and their partner take days..."
"... who is responsible for the garden fence which borders his property with his neighbour's) The vendor and their partner take days to agree what should be included on the fixtures and fittings list The vendor cannot find details of his current building insurance and has to ask the insurance..."
"... days to agree what should be included on the fixtures and fittings list The vendor cannot find details of his current building insurance and has to ask the insurance company to send him a copy of the current certificate The vendor has told you something is under guarantee but cannot find the..."
"... and has to ask the insurance company to send him a copy of the current certificate The vendor has told you something is under guarantee but cannot find the certificate. It takes time to get a copy The vendor has carried out building works on the property which required planning consent..."
"... is under guarantee but cannot find the certificate. It takes time to get a copy The vendor has carried out building works on the property which required planning consent but he has not apply for it The vendor has carried out building works on the property but does not have a copy of the..."
"... works on the property which required planning consent but he has not apply for it The vendor has carried out building works on the property but does not have a copy of the planning consent that was given The vendor has carried out building works on the property which required Building..."
"... but does not have a copy of the planning consent that was given The vendor has carried out building works on the property which required Building Regulation Approval but he has not had the work inspected and so has no certificate The vendor has carried out building works on the property which..."
"... he has not had the work inspected and so has no certificate The vendor has carried out building works on the property which required Building Regulation Approval and has a Building Regulation Approval certificate but cannot find it. - Replying to Further Enquiries - Once your solicitor..."
"... - Once your solicitor has been through the first batch of paperwork sent by the vendor's solicitor he is likely to have some extra questions that are either required by the particular lender you are using (if you are applying for a mortgage) or because he believes you should know. These..."
"...These enquiries are sent to the vendors’ solicitor who may be able to answer some of them from the existing paperwork (where he thinks your solicitor has missed or not read certain documents) but there may be other points which only the vendor can answer. These may, for example, be with reference to a legal dispute with one of the neighbours or missing guarantees. ..."
"... one of the neighbours or missing guarantees. What Can Go Wrong The vendor does not know the answer to a question and is not aware that he simply has to reply ‘I do not know’. He spends days trying to find the answer The vendor does not understand why your solicitor needs to know a..."
"... has to reply ‘I do not know’. He spends days trying to find the answer The vendor does not understand why your solicitor needs to know a particular point and feels it is irrelevant. As such he refuses to answer - Signing the Contract - The vendor has agreed to sell to you at a..."
"... the Contract - The vendor has agreed to sell to you at a certain price so as soon as the wording of the contract itself is agreed between the two solicitors he can sign the document and simply wait for you to sign yours when all the other paperwork is out of the way. But many don't and..."
"... By doing this, and saving themselves the risk of extra work, there is more risk. What Can Go Wrong The vendor assumes everything is in hand and goes on holiday making exchange impossible The vendor's solicitor only sends the vendor the contract once you have signed your copy. It spends time..."
"... assumes everything is in hand and goes on holiday making exchange impossible The vendor's solicitor only sends the vendor the contract once you have signed your copy. It spends time and is delayed in the post - Summary - Despite the endless pitfalls that seem to be placed between..."
-------------------------------------------
"...The Balance of Power has two parts, what is actually happening and who actually has the power versus what both parties (buyer and vendor) believe is happening and who they believe has the power. This means that just because you, as a buyer, may believe the market is moving down and want to renegotiate the price, the vendor may believe the opposite and think it is worth withdrawing from the sale in order to sell again for more money. ..."
"...It is important from day one to understand the vendor's motivation for selling and then, market conditions aside, you will know if it is wise to cause waves after a bad survey - balanced against your particular desire for that property. Far too many buyers try to renegotiate only to find the papers are withdrawn from them by an emotional vendor who then refuses to continue the sale under any circumstances. The selling agent is the best person to ask as they should know why the vendor is selling and their state of mind at any given moment. Note here the key is 'at any given moment'. ..."
"... key is 'at any given moment'. With private sales motivation is much more difficult to gauge as the vendor may well lie in order to make himself look less desperate or conversely to try and get an offer which he can then use to push other potential buyers higher. - How the Balance of Power..."
"... to try and get an offer which he can then use to push other potential buyers higher. - How the Balance of Power Changes - What weakens a vendors' power includes: the property being vacant and mortgage payments are high they have found a property they want to buy the market is..."
"... got back together with their ex-spouse. You have gone from having power to having none so no matter what a walk over you believe the vendor to be at the start of a transaction always keep things civil and don't assume that circumstances won't change. True Story - A Renegotiation on Edgeley..."
"... time. The chain moved forwards and the vendors of Edgeley Road booked a survey on their house in Balham. The surveyor's report suggested the house needed a great deal of work and, with so many extra costs to take into account, they decided to withdraw from their purchase of the house. On a..."
"...Simon's survey did not reveal any great surprises but he did believe he might be able to save a little more by renegotiating on some points regarding damp and timber. The time spent going backwards and forwards gave the vendor plenty of time to think and they concluded that actually they were underselling their own property for no good reason. Furthermore they believed the buyer was now being unreasonable in his demands and so they withdrew from the sale. ..."
"... was now being unreasonable in his demands and so they withdrew from the sale. If Simon had stayed quiet and not overcooked his bargaining the vendors would probably have exchanged but greed got the better of him. True Story - Chipping the price at Swan YardMelissa had made an offer on a..."
"...When Melissa's offer came in at £195,000 he was relieved and agreed to it immediately. The transaction moved through to the point of exchange within five weeks. At this point Melissa thought she would take a chance and, giving lots of arguments about a falling market (which did not exist) told the vendor that if he wanted to exchange he would have to reduce the price by a further £5,000. ..."
"...Three weeks previously the people who owned the flat upstairs from the property in question had approached the vendor and offered him the full £205,000 so that they could change the building back into one whole house. The vendor had done the honourable thing by telling them that he was already under offer and would not back out of an agreement he had already made. ..."
"...Within two hours of Melissa attempting to renegotiate the price the vendor had decided that this meant there was no need for him to remain true to his word, if his buyer was not true to hers. He asked his solicitor to retrieve the contract and called the people in the flat upstairs to give them the good news. ..."
-------------------------------------------
Chapter 19: Time Costs Deals
"... exchange of contracts, the more likely it is that the deal will fall through, often for no good reason. Here are just a few events that can stop either the buyer or the vendor proceeding. What makes the buyer stop buying What makes the seller stop..."
"... happen. True Story - The Windows at Seymour Street Sonya and Mark had made an offer on a one bedroom flat in the depths of the Winter market. The low level of viewings had persuaded the vendor to accept £240,000 on their £270,000 flat. David was another buyer who had come to see the flat..."
"...David, in the meantime, was close to exchange on his purchase when the vendor pulled out after loosing his job. David called the agent to talk about new properties he could buy and asked after Seymour Street. He was shocked to find that after nearly three months, and in the middle of a busy Spring market, it had not exchanged and immediately offered to pay the asking price. ..."
-------------------------------------------
"... to use a survey to renegotiate and when to keep quiet; How to choose a good surveyor, and make sure the lender does to; Why you should never ask the vendor to carry out work; Most buyers make one mistake here, they believe because they have paid the surveyor to do something, the surveyor..."
"...Probably one of the biggest waste of times in the whole home buying process. It is a valuation survey followed by a lot of speculation. You are likely to find out fascinating things like screws missing from plug sockets, wood that needs replacing in windows, kitchen cabinet doors that need to be fastened. The crucial thing on this survey is the valuation. If, with all the property defects, the surveyor still concludes the property is worth the agreed price then (unless the vendor is very desperate to sell) don't try to use it for negotiation. If the survey states that 'in it's current condition the property is worth x' and x is the price agreed then there are no grounds for negotiation. ..."
"...For older houses these are generally seen as a must have by almost anyone who has written on the subject but again you need to take a view. If there is something structurally wrong with the property a valuation survey will pick that up. Its most important feature is probably that it will be useful when you come to sell the property as you can show it to a potential buyer under the guise, "When I bought this house X, Y and Z were wrong. I had them all fixed and here are the guarantees or receipts." (See Chapter 22: Why vendors are Poorly Prepared ). ..."
"... neighbours are all very understanding it is not going to happen. Requesting structural surveys on flats generally annoys the vendor who knows they can probably sell to someone else a little less awkward or a little less naive. - Retentions in a Survey - If the surveyor, carrying out any..."
"...Sarah and Nicki doubted the difference in the two figures and instructed a second damp proof company who quoted £379 plus VAT. The vendor felt that the buyers were obviously desperate to reduce the price and if it wasn't this they would find something else in the legal paperwork so, having lost confidence in them, withdrew the contract. ..."
"...You or the vendor, or both, should expect to pay for the specialists if you do decide to investigate further. This was not always the case but these tradesmen are very aware of how much surveyors are trying to cover themselves now. They are also aware that no matter what they find they are unlikely to get the work as any quote they give will usually just be used as a negotiating tool. As soon as the new buyer moves in they either take a view on the work or get other quotes to see if someone else will do it cheaper. ..."
"... damp and so gets damp specialist in Damp specialist says £3,000 of work required Mr X tries to negotiate price, the vendor says , "The damp has never been a problem to me, when I moved in I took a view on it" Mr X eventually successfully gets £1,000 off price and goes through with..."
"...True Story - The Tree at St Paul's StreetDiane was very keen to purchase a three storey Georgian House in Islington. She offered to pay a little less than the £525,000 being asked and the vendor accepted. Her survey, however, questioned how stable the property was due to a tree situated in the pavement directly outside the front door. The vendor having had no issues when he purchased the property three years earlier refused to pay for a structural engineer to examine the building. ..."
"... market was moving up. The vendor eventually became frustrated and withdrew the contract from Diane's solicitor. Five weeks later he sold the property at the asking price and the survey from the new buyer made no mention of the tree or any movement in the property. Diane ended up buying a..."
"... a surveyor directly make an effort to find out who your lender has appointed. If necessary kick up hell to get them changed. - Asking the vendor to Carry Out Work - In almost all cases this is a bad idea. It does not matter if the market is rising or falling. It is irrelevant how desperate..."
"... the Vendor to Carry Out Work - In almost all cases this is a bad idea. It does not matter if the market is rising or falling. It is irrelevant how desperate the vendor is or if you hold all the cards, don't ask the seller to put right things found in the survey. There are very practical..."
"...There are very practical reasons for this. In the first instance the vendor will look for the cheapest possible company and he will have absolutely no motivation to make sure the work is done to a high standard - he's moving out and all he needs to do is provide a receipt showing someone did, or said they did, the work. The vendor will not be the one living with the result. ..."
"...Secondly it can be too time consuming to check some of the most common work. Let's take an example of penetrating damp found underneath a window which is coming from a crack between the outside brickwork and the window frame. The work to fill in the crack might cost £200 so you would feel confident in asking the vendor to put it right. But he hires a cheap builder who uses low quality materials and provides a receipt confirming the work is done. It may have been done to such a standard that you will have to undo and redo the work yourself at some stage in the near future. ..."
"... the price agreed, even with this defect, think carefully about renegotiating in a falling market, depending on the balance of power between you and the vendor, you may be able to negotiate the price to cover the work Summary - With all the ins and outs of a survey report the crucial..."
"...With all the ins and outs of a survey report the crucial question is value. If the survey report talks about roof or plumbing but concludes that the property is worth what you have offered then trying to renegotiate price is at your own risk. Too many people ignore this fact. Most properties are old, very old, and problems or future works are to be expected. The surveyor knows this and that is why they conclude their report: "In its current condition and in the current market the property is worth £x". And if £x is the price you have agreed with the vendor then so be it...."
-------------------------------------------
"... property actually have the right to sell it - do they own it? Fixtures and Fittings Apart from the bricks, mortar, roof and windows, what is the vendor proposing to include with the sale? The Sellers Pack Does the vendor know of any reason why a buyer would not want the..."
"... mortar, roof and windows, what is the vendor proposing to include with the sale? The Sellers Pack Does the vendor know of any reason why a buyer would not want the property? Insurance Is the building insured and if not, why not? Planning Consent and Building..."
"... is not reading the papers he has been sent and so is causing unnecessary delay The buyer and the vendor both think the other party is not serious about the transaction and consider withdrawing after two wasted weeks In order to help you cut through the mess that is so easily generated, here..."
-------------------------------------------
"... everything that happens correctly after that is a bonus! Why defining your offer at the start will save time and stress with a poorly prepared vendor; Why there can be long delays between an offer being agreed and your solicitor receiving papers; Why..."
"... vendor; Why there can be long delays between an offer being agreed and your solicitor receiving papers; Why the paperwork the vendor needed to buy the property may not be enough; How to get documents before the vendor can; When your pressure can help the vendor; How to tell what is a..."
"... being agreed and your solicitor receiving papers; Why the paperwork the vendor needed to buy the property may not be enough; How to get documents before the vendor can; When your pressure can help the vendor; How to tell what is a mistake and what is misleading; Culture differences which may..."
"... the paperwork the vendor needed to buy the property may not be enough; How to get documents before the vendor can; When your pressure can help the vendor; How to tell what is a mistake and what is misleading; Culture differences which may not be insults; The true story of curtains..."
"... with all that needs to be prepared in order to make a sale move smoothly. Remember if you are a first-time buyer, you may well be buying from a first time vendor who does not know what they are doing Strange as it seems most Estate Agents and Solicitors know what needs to be..."
"... they are doing Strange as it seems most Estate Agents and Solicitors know what needs to be prepared but rarely take the vendor through this, trying to avoid discussions that suggest the vendor spends time or money until there is actually some active interest in the property. All this is..."
"... once the transaction is completed. Most don't so the result is that, once your offer is accepted, it often feels as if the vendor is actually reluctant to sell. There can be long delays while they choose a solicitor or get the necessary paperwork together. The vendor may also not have..."
"...The vendor may also not have thought through how they will look in your eyes when they choose the selling agent or solicitor basing their decision on other factors such as price, location or recommendations. This doesn't mean the vendor does not have good intentions but because of your limited contact with them it is not always easy to tell if they are messing you around or if the parties they have chosen to represent them are generally incompetent. ..."
"...When making your offer the vendor is usually keen to make sure you can move quickly but may not have their own documents in order that will make the speed they require actually happen. This does not always mean they do not want the transaction to go through in a short time-scale and in order to keep things moving there are many things you can do to short circuit delays. Doing this is crucial because, as we have seen already in the chapter Time Costs Deals, speed is important. ..."
"... the Paperwork - There is a set of basic paperwork which your solicitor is going to need from the vendor's solicitor if exchange of contracts is going to take place. If this has not been prepared prior to your offer there will be immediate delays unless: you have chosen a good..."
"... have chosen a good solicitor who will not wait for all the paperwork before starting work the vendor chosen a good solicitor who will send out what they have with other documents to follow on later If the vendor is poorly prepared your choice of solicitor can make all the difference to the..."
"... who will send out what they have with other documents to follow on later If the vendor is poorly prepared your choice of solicitor can make all the difference to the success, or otherwise, of the deal As an example lets say you have your offer accepted on the first day of October,..."
"... offer accepted on the first day of October, which for the purposes of this illustration is a Monday. What the vendor is doing What your solicitor is doing Monday 'Phoning round solicitors to get quotes Nothing Tuesday Waiting..."
"... for the quotes Nothing Wednesday Choosing a solicitor Nothing Thursday Solicitor sends out forms to be filled in by vendor Nothing Friday Forms arrive but vendor is at work Nothing Saturday Vendor fills out..."
"... a solicitor Nothing Thursday Solicitor sends out forms to be filled in by vendor Nothing Friday Forms arrive but vendor is at work Nothing Saturday Vendor fills out necessary..."
"... to be filled in by vendor Nothing Friday Forms arrive but vendor is at work Nothing Saturday vendor fills out necessary paperwork Nothing Sunday Nothing Nothing Monday Vendor posts paperwork back to his..."
"... fills out necessary paperwork Nothing Sunday Nothing Nothing Monday vendor posts paperwork back to his solicitor Nothing Tuesday Solicitor receives paperwork and requests office copy entries from Land..."
"...In other words it has been two weeks since the deal was agreed and your solicitor has so far done nothing, moreover you have heard nothing and seen no action! The example above, you should be aware, is based on a best possible scenario. The vendor may have chosen an old fashioned solicitor who waits weeks for original title deeds or an overworked solicitor who can't turn things around in the same day. ..."
"... who waits weeks for original title deeds or an overworked solicitor who can't turn things around in the same day. Hearing nothing does not mean the vendor is doing nothing Many deals fail because the buyer waits weeks with no paperwork and, assuming the vendor is not serious, then goes..."
"...Many deals fail because the buyer waits weeks with no paperwork and, assuming the vendor is not serious, then goes out and offers on something else. If there is good communication between the solicitors or with the agent then at least you know where in the above process they are and that things are actually happening. ..."
"...As far as legal paperwork goes you also should be aware that what exists from the last sale of the property (when the vendor bought) may not necessarily be adequate for what your solicitor needs now. This is because solicitors are far more frightened of being sued today than they were say a few years ago and what mortgage lenders require on their part is constantly changing and varies from company to company. As such if, once all the paperwork arrives, don't be surprised if your solicitor says he needs more information and don't always believe that the vendor is being awkward and holding back on you. They may just be puzzled because they have given you everything that they were told they needed in order to buy the property way back then. ..."
"... told they needed in order to buy the property way back then. The paperwork the vendor required in order to buy the property may be inadequate for your purchase because of changes in the law or the requirements of mortgage lenders. The paperwork which should be coming through is as..."
"...We are all human and it is perfectly feasible for the vendor to have lost or mislaid any of these documents. The reasons you need them are laid out in the chapter The Property Buying Process in Theory. Below however are ways in which you can speed up the acquisition of these documents if the vendor is struggling or being slow. ..."
"...The vendor gets this form from their solicitor and is only required to fill it out to the best of their knowledge. When you see it don't be surprised if there are lots of "Don't Know" replies. One of the most common questions which gets this reply is who is responsible for the garden fences where they border other people's property. Most property owners genuinely don't know and there is a fairly good chance that you will never know either in the time you spend there. ..."
"...There will be far fewer issues on this if you make your offer comprehensive (see the chapter How to Really Make an Offer on a Property). Many buyers are shocked when they see this document if it outlines how much the vendor wants them to pay for carpets, curtains, door handles, light switches, garden sheds and so on. This does not always mean that the vendor is being unreasonable or greedy. It may be that in all the purchases they have ever done they were expected to pay extra for these items. As such they will believe that paying for carpets and curtains is the norm. ..."
"...Some buyers also get upset when they believe their offer was put forward to specifically include a certain item, such as the cooker, and the fixtures and fittings list says it is not included. Bear in mind that the vendor may have filled out this form weeks before your offer was agreed but not thought to adjust it's contents. More often however it is the solicitor who makes the error. He finds he suddenly has two fixtures and fittings lists and, not sure which one is correct, sends the more "prudent" one. ..."
"... more "prudent" one. As soon as you are aware of an error contact the Estate Agent immediately, remind them of your written offer and ask them to contact the vendor. At the same time ask your solicitor to approach the buyer's solicitor in order to resolve the matter. Again assume error in..."
"... time ask your solicitor to approach the buyer's solicitor in order to resolve the matter. Again assume error in the first instance rather than the idea that the vendor is going back on an agreement. True Story - Carpets and Curtains at Duncan TerraceA buyer agreed to pay £1.325m for a..."
"...True Story - Carpets and Curtains at Duncan TerraceA buyer agreed to pay £1.325m for a town house in Islington and the vendors solicitor immediately sent across a complete pack containing all the required paperwork. In among this was a fixtures and fittings list which laid out the extra price required for the purchase of the curtains and the carpets. The buyers were angry that the vendors had even suggested they pay an extra £2,000 for these items considering the price being paid for the property. The vendors, on the other hand, had always had to pay extra for carpets and curtains in every purchase they had ever made. ..."
"...The vendors approached the Estate Agent for advice and were surprised to find that they had had unusual experiences in all their previous transactions and that paying extra for carpets and curtains was actually not the norm for most transactions. They were however reasonable people and, understanding that their past was unusual, agreed to leave carpets and curtains at no extra cost. In order to mend any hard feelings, they also threw in the washing machine and fridge. ..."
"...Waiting for the vendor's solicitor to write to the council, and for the council to actually get round to replying, can take forever and a day. To get round the problem almost all councils have walk in centres where any member of the public can look up planning applications and see if they were successful or not. Some can even be accessed over the internet. ..."
"... can even be accessed over the internet. Assume the vendor does not know this, most people don't, and if there is a planning query take a couple of hours off work to get down there and sort it out. What might take weeks can be resolved in an afternoon! - Building Regulation Approval -..."
"...The vendor may have been very keen to tell you about works he had carried out while he lived at the property but the actual paperwork relating to this may well be missing or lost or the company that carried out the work has gone out of business. In the search to clarify guarantees it is often worth having a bash at calling up the company in question, you have nothing to loose and generally they are pretty helpful. ..."
"...Managing agents come in all shapes and sizes from large companies to individuals who buy up freeholds. They can be helpful or down right awkward. If there seem to be delays in getting the information your solicitor needs, ask for the contact details and chase them yourself. If you, the vendor, and both the solicitors are chasing then the managing agents are more likely to respond quickly in order to get all four of you off their backs! ..."
"... A deed of variation is one of those little bits of paper that so easily goes missing or the kind of thing that a vendor thinks he did, after his purchase of the property, because he asked his solicitor to do it but in the bustle of a busy life forgot to follow up on and actually it never happened. ..."
"... forgot to follow up on and actually it never happened. All being well when the vendor put his property on the market he will have asked his solicitor to double check all the paperwork is in order, but very rarely are things that perfect. In other words expect some odd things that the vendor..."
"...In other words expect some odd things that the vendor may have said were in order, turn out not to be. Again it is not often a lie, simply an oversight. As soon as you move in you will be so immediately preoccupied with paint colours, new kitchens and the like that calling your solicitor to discuss tidying up some outstanding paperwork will also be at the back of your mind, to say the least! ..."
"...Every so often there is a forward thinking vendor out there or one who really has been well advised by the Estate Agent. He will understand why time costs deals and does not want things to drag on as much as you don't. So against the advice of almost everyone he will have applied for a local search when, or before, he put the property on the market. ..."
"... If this has been returned by the local council, or is about to be returned, he may be able to sell it to you at cost and so save the weeks that it can take to apply for. It's always worth checking the situation with the vendor's solicitor, just in case, before applying for your own search. ..."
"... applying for your own search. - The Survey - This is something only carried out by the really smart vendor but if there is one thing that can help with stress free selling it is to get a survey done on a property before selling. In the case of a Leasehold or Share of Freehold..."
"... a Leasehold or Share of Freehold property, a homebuyers survey In the case of a Freehold property, a structural survey The reason smart vendors do this is two fold: They can address any problems which come up in the survey before the buyer does and tries to renegotiate the price They..."
"...This is especially useful with freehold properties where the surveyor may question how structurally sound the property is. In this instance if there is a problem the vendor can get the opinion of a structural engineer long before your surveyor even steps through the door. A structural engineer is more highly qualified than a surveyor in these matters so the green light here will most certainly not be questioned by your surveyor. ..."
"... questioned by your surveyor. Even if the vendor decides not to go ahead with works that need done they often organise quotes so you are fully aware and objective when it comes to making an offer, and that offer is far more likely to make it through to exchange. In a handful of cases the..."
"... is far more likely to make it through to exchange. In a handful of cases the surveyor the vendor chooses may be acceptable to the your lender, in which case you could consider buying it from the vendor and saving yourself some time. Summary - There are very, very few vendors who really..."
"... the vendor and saving yourself some time. Summary - There are very, very few vendors who really think through or prepare for their sale. Most will simply invite a few estate agents around and then put their property on the market. This chapter may have sounded a little strange and you..."
"... of it all falling through (as covered in the chapter Time Costs Deals. Assume the vendor is naive, uninformed, ignorant and disorganised. From this standpoint everything that happens correctly after that is a bonus!..."
-------------------------------------------
"... of poorly motivated and inexperienced staff sale agreed may never make it to completion. The way most vendors choose agents; Why buyers think some agents have 'more expensive properties'; How the agent's fee affects the sale price; Spotting agents who..."
"... their staff the wrong way; Why sales fail more at some agents than others; Big agents, small agents and the right agents; The different types of commission a vendor pays; What a property on the market with a number of agents tells you about the property; Why vendors change..."
"... different types of commission a vendor pays; What a property on the market with a number of agents tells you about the property; Why vendors change agents; Whether you are viewing properties or in the middle of a transaction it will become obvious to you (very quickly) who the..."
"...Whether you are viewing properties or in the middle of a transaction it will become obvious to you (very quickly) who the competent agents are and who is sadly lacking. Unfortunately the majority are sadly lacking and as you leave your tenth message you might wonder why a vendor would choose such a ridiculous company to represent them in their sale. ..."
"... To understand this it is worth winding back the clock a little and putting yourself in the shoes of a vendor. You are just about to sell your property and a multitude of choices confront you. The easiest, and worst, way to differentiate them is to make one or more of the following three mistakes ..."
"...The poor quality agent, in the meantime, has not the means to market affectively either in the media or on the internet and their poorly motivated staff ensure fewer people are aware of the property's existence. There could be twenty buyers who want to compete but only one or two are told that it is there. The result is a lower price for the vendor. ..."
"...There are plenty of clues to understand how well things will come together if you know a little about how an agent works, and this is covered here. For the purposes of this chapter stay inside a potential vendor's shoes and you will see that it is actually remarkably easy to choose a bad agent unless you know better. ..."
"... remarkably easy to choose a bad agent unless you know better. - The Fee and its' Impact on the Sale Price - The fee that you, the vendor, pay will affect three things: The price achieved for your property The quality of the staff you deal with (and so the likelihood of..."
"...Here is a contradiction. You should attempt to negotiate the fee and see how low you can get it. This will give you an idea of what most of the vendors who are using that agent are paying. From this you will get a clear idea of how much the staff are generally being paid. If they do negotiate low fees their staff will be earning less than an agent who sticks to his guns. By definition this means the staff he can recruit are less experienced and, once they have become experienced, they will move to an agency that pays better which by definition means one that charges a higher fee. ..."
"...A vendors property in the paper, on a web sites or a set of details in the front window will keep vendors happy, generate some viewings but does not necessarily marry the right person to the right property. The overall aim that agents set out to achieve when they carry out marketing is to demonstrate that they have different types of property, across the price ranges, in a wide variety of areas. In other words: "Whatever you are looking for, we probably had it, have it, or will have it so come and get registered". ..."
"... they saw your in the paper is unlikely to be at an offering stage. Most vendors find this concept difficult to understand and so most agents just tell them what they want to hear which goes something like this: "Don't worry Mr Smith, the details of your property will be ready next..."
"...Don't get side tracked by these irrelevancies. Feedback from viewings and honest advice are far, far better. The agent knows none of them are particularly effective but they know the vendor thinks they are. In the meantime they crack on with registering active buyers and trying to match them to your property. ..."
"... Its easy for a vendor to be dazzled by the talk of large agents. They point to the fact that their office has ten, fifteen or even twenty negotiators operating out of one place. Its tempting to believe that with so many people on the case they cannot fail to sell your property for top dollar. ..."
"... sell it at all. - Using More than One Agent - If you are using just one agent the term associated with this is sole agency. There are three other scenarios that any vendor should be aware of, at least one of which should be avoided: Joint Sole Agency Split Commission Multiple..."
"... the property sound exclusive in some other way than having to say "multiple". - Split Commission - This will often happen without the vendor knowing it and works something like this: You instruct Agent A to market your property after deciding they are the best to represent you. Agent A..."
"... Slow preparation of the details - Many vendors get sidetracked by the details. If the negotiators in the agent are well motivated they won't be waiting for details to get their hot applicants into your property. If they hesitate their colleague will be faster and get the deal (and the money). ..."
"...They have not had many viewings - If the negotiators are motivated and the agent is solid then the staff will be busy. They will know that poorly qualified applicants result in lots of viewings but very little business. If the staff are paid on commission they will want to stay focused on only taking the right people to the right properties. A classic case is the vendor who has a two bedroom flat where the second bedroom is very small. A bad agent will drag every two double bedroom applicant round there and then tell you the feedback is that the second bedroom is too small. A good agent will ask the applicant, at registration, why they need the second bedroom. If it is too rent out they will discount your property. Much fewer but much more focused viewings. ..."
"...Another agent may have different applicants - If you have instructed at least two good agents the chances of a third agent actually having someone different are pretty remote. Many vendors change agent simply for peace of mind that they are actually doing something. In reality if you go under offer quickly this is more luck than anything else. ..."
"...True Story - Changing Agents for different buyersThere were two properties for sale on Dagmar Terrace in Islington. One with agent A and one with Agent B. Both agents were well known and represented to the extent that you could reasonably assume anyone registered with Agent A would also register with Agent B. They were all getting regular viewings but none were attracting any offers. At the same time both vendors decided it was time for a change. The one on with Agent A went over to Agent B and the one on with Agent B went over to Agent A. ..."
"... Agent B went over to Agent A. Both properties sold within the week to new buyers that had registered just after the transfer. Both vendors were absolutely convinced that the reason for their own successful sale was down to their decision to swap agents! They got a low offer - Or did..."
"...It is unbelievably common for a vendor to swap agents after a low offer and the new agent is already rubbing their hands with glee. In their mind the previous agent has done the hard work. In other words they have found the market value of your property and all they need to do is get an offer in the same region, even slightly lower. They can then argue that a second or third offer at the same level is proof of what your property is worth. Very often they know that mentally you will be coming round to this way of thinking and will agree. ..."

Search Results for 'vendor' in Property FAQ

There were no results for 'vendor' in Propery FAQ

spacer
Get a Book Preview website
spacer