Draft Contract Papers Conveyancing: A Guide for Home Buyers
If you’re in the process of buying a home, you’re likely to come across the term “conveyancing”. This is the legal process of transferring property ownership from the seller to the buyer. In this process, a key document is the draft contract papers, which outlines the terms of the sale. This article provides an overview of draft contract papers conveyancing and what you need to know as a home buyer.
What is a Draft Contract?
A draft contract is a preliminary version of the sales contract and is prepared by the seller’s solicitor. It outlines the terms and conditions of the sale, including the price, deposit, completion date, and any special conditions. The draft contract is usually sent to the buyer’s solicitor for review and amendment before the final contract is signed.
What’s Included in a Draft Contract?
Before you sign a sales contract, it’s important to review the draft contract papers carefully. Here are some important items to look for:
Property Description: This should include a detailed description of the property, including the address, boundaries, and any fixtures and fittings included in the sale.
Price: The draft contract will outline the purchase price and any additional costs, such as stamp duty, legal fees, and search fees.
Deposit: The deposit is usually set at 10% of the purchase price and is paid by the buyer upon exchange of contracts.
Completion Date: This is the date when the buyer takes possession of the property and the balance of the purchase price is paid.
Special Conditions: These are any additional clauses in the contract, such as requirements for repairs or alterations, or special arrangements for access to the property prior to completion.
What Should I Look Out For?
When reviewing the draft contract papers, it’s important to look for any clauses or conditions that could impact your ability to purchase or use the property. Here are some items to watch out for:
Title Issues: The draft contract should confirm that the seller has the legal right to sell the property and that there are no liens or encumbrances on the property.
Planning and Building Regulations: The contract should confirm that any alterations or additions to the property have been approved by the relevant authorities.
Leasehold or Freehold: If the property is leasehold, the contract should outline the terms of the lease, including any ground rent or service charges.
Repossession or Bankruptcy: If the seller is in financial difficulties, there may be clauses in the contract that could impact the sale, such as the possibility of repossession.
Draft contract papers conveyancing is an important part of the home buying process. It’s essential to review the document carefully and seek legal advice if necessary. By understanding the terms and conditions outlined in the draft contract, you can ensure that the sale proceeds smoothly and that your rights as a home buyer are protected.