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What Do You Legally Have to Leave When Selling a House UK?

What Do You Legally Have to Leave When Selling a House UK?

Looking at your moving home checklist, things to do when moving out of home, and how we can help.

Alexandra Ventress

Alexandra Ventress ★ Digital Content Writer

Table of Contents

Moving out of your home can be an exciting time, however, it is also one of the most stressful experiences you will have to go through. Remembering to pack everything that is essential, making sure you don’t forget anything valuable, and vetting various moving companies are all part and parcel of the house-buying and selling process. 

 

And whilst it often may seem obvious what you will take when moving out of home, what is often not as obvious is what you should leave behind in the move. 

 

In this blog post, we will be looking at what you are legally meant to leave behind when you move, the difference between fixtures and fittings, and how to make the most of packing for your new address. 

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What do you leave when moving home?

When it comes to selling your house, there is no law in the UK that dictates what stays with a house when you sell it. This can lead to some friction with your buyer, especially if they move into your home expecting to find carpets, only to find that you took them in the move to the new place. 

 

In the UK, there is no obligation for sellers to indicate whether they are leaving any homeware or furniture when they move, however, it is common courtesy to notify your buyers on the condition you plan to leave the property in, as well as what you intend to leave. 

 

The most effective way that you can alert your buyers to this is to include a fixtures and fittings checklist with the sale contract. This will help you to avoid complications further down the line, as everyone will be aware of exactly what will be left in the property. 

Do I have to pay for cleaning when I move out?

Whether or not you have to pay for cleaning when you move out of your property will depend upon your own personal circumstances. If you live in a tenanted property and have a landlord, then it would be within your best interests to either pay for a professional cleaner to clean the property, or you should clean the property thoroughly yourself. This is because it is not just common courtesy, but also because if your landlord is not pleased with the condition that you have left the property in, they may withhold your deposit, leaving you out of pocket. 

 

If you already own your own property, then whether or not you clean is down to personal choice, however, you should leave your property as you expect to find your new one. 

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How clean is a seller required to leave the house after moving out UK?

Legally, the seller can leave the property in whatever condition they wish. However, it is common decency to leave the property in a good, clean condition. As you will be aware, moving house is an incredibly stressful situation, and you should be looking to leave the property in a way that you would be pleased to find it. 

 

Because of this, you should consider giving your property a deep clean before moving day. Hoovering and cleaning carpets, polishing floors and surfaces, and cleaning away any clutter. 

What are fixtures and fittings? 

When you are buying or selling a property, you will have likely heard the terms fixtures and sitting thrown about. But what exactly do they mean? 

 

Fixtures are classed as items that are attached to the building, this would include radiators, worktops, and units.

 

Fittings are items that are items that are attached to the property but with nails and screws. Examples of fittings would be shelves and toilet roll holders.  

TA10 form 

Whilst you may find that the majority of fittings within your home are of low value, disagreements can still break out between buyers and sellers about what exactly is being left behind in the property. This is where a TA10 property form comes into play. 

 

 If you are moving into a new property, the last thing you want is to move in to find that the previous owners have left everything they didn’t want to take with them in the move. Equally, you do not want to move to find that the entire property has been stripped bare. By filling out a TA10 property information form, each party can agree on what fixtures and fittings are staying and going as part of the move. 

 

If you are the seller, then your solicitor should give you a copy of the TA10 form to fill out. The best way to do this is to go through your property, room by room and decide what you will take with you in the move, and what you will be leaving behind. 

 

After the form has been completed, the buyer’s solicitor will receive the TA10 from the seller’s solicitor and will be able to raise any queries they may have. 

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What are the laws on fixtures and fittings? 

More often than not, as the seller, you are legally expected to leave the property in a “reasonable” condition. There are exceptions made for slight wear and tear that may occur between the exchange of contracts and the completion day. 

 

As already mentioned, the seller is obligated to leave behind the contents stated in the contract of sale. So if a buyer agreed to a sale under the pretence that the white goods would be included only to find the seller has taken them, this could be deemed as a breach of contract. Whilst the buyer could pursue this legally, legal procedures are often costly, and it is often not worth the buyer’s time or money to pursue. 

What to leave on moving day?

When it comes to packing, it can be difficult to know what to take with you to your new home, and you will need to leave.  Below we have listed some items that you may be expected to leave when you move, but are under no legal obligation to leave. 

Fixtures 

  • Light fittings and switches 
  • Plugs
  • Boiler
  • Built-in wardrobes 
  • Kitchen counters 
  • Bathroom suites
  • Radiators 

Fittings 

  • Curtain rails and curtain poles 
  • Shelves
  • Carpets 
  • TV Aerials and satellite
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Do you leave carpets when you move out?

Whilst some of the items in your house may obviously fall into either fixtures or fittings, there are a few household items that may be harder to categorise, thus making it harder to pack. Carpets could technically fall into the fittings category and can be easily taken up, however many buyers will often expect them in the home. 

 

Whether or not you leave your carpets will depend on your own personal choices, but if you are planning on taking them, you should make this clear to the buyer early on in the process. 

Do you leave shelves when moving?

As a rule of thumb, when it comes to fittings, you should aim to leave them behind when you move house. It is a good idea to read through your contract carefully in order to fully understand what can be taken and what you have agreed to leave, however, shelves are usually expected to be left behind. 

Do you take curtains with you when you move?

Unless it is stated in your TA10, then you will not be legally obligated to leave the curtains behind. However, it is considered polite to make your buyer aware of this if you do plan on taking them with you, as it is difficult to find curtains that fit, and no one wants to move into a property with bare windows.  

 

However, whilst you are not obligated to leave the curtains, you will more than likely be required to leave the curtain pole. If you have already stated in the TA10 form that you will leave the curtains, then you are legally bound to do so. 

Do you take your wheelie bin with you when moving? 

You should not take your wheelie bin with you when you move. You will have a wheelie bin already waiting at your next property, however, you will still be able to use your wheelie-bin up until the moving day. The general rule is that it is acceptable to leave a bit of rubbish at the bottom of the bin, but there should be enough room for the buyers to use it until the next bin day. Any extra rubbish needs to be taken to the skip or removed. 

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Top tips for deciding what to leave when packing 

When it comes to moving house, you should have all of the fixtures and fittings that you plan to leave for the new buyers outlined clearly in your inventory.  Below, we have outlined three of our top tips for deciding what to take with you when moving home. 

Before you commit to the sale, you should make sure that you write down exactly what you are leaving for the new homeowner. This will help the sale to progress a lot smoother and will mean your buyer knows exactly what they are getting when moving to a new home. 

You may want to take all of your fixtures and fittings with you when you move to your new home. However, this may require some strong negotiating on your behalf, so it is important to remain friendly and open to your buyer’s point of view. 

By leaving a list of the items that you plan to leave behind for your buyers, you have the potential to speed up your sale. The offer of the fixtures and fittings included with your property may be enough to sweeten the deal for any buyers who may be hesitating and secure you a faster sale. 

 

Or alternatively, you could sell your home in as little as 28 days through us…

The Property Selling Company 

Regardless of whether you are buying or selling, here at The Property Selling Company, we are here to help! 

 

We’ve made it our mission to change the way that you sell houses because we believe that a house sale should be three things: fast, effortless, and free. 

 

That’s why when you sell your house with us, you can say goodbye to expensive legal and estate agent bills, as we can sell your house in as little as 28 days, without the fees. 

 

We offer you a full estate agent service but without the hassle. Whether you are buying or selling, we are here to take care of everything and work alongside you every step of the selling or buying process. 

 

If you are ready to kickstart your house selling or buying journey, then get in touch today by giving us a call or by filling out one of our free no-obligation valuation forms! 

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Can You Sell or Buy A House Without Building Regs?

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Can You Sell or Buy A House Without Building Regs?

Looking at what building regulations are, what they are used for, and whether you can buy or sell a house without building regs. 

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WRITTEN BY: Alexandra Ventress ★ Digital Content Writer

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Can you sell or buy a house without building regs?

Looking at what building regulations are, what they are used for, and whether you can buy or sell a house without building regs. 

Sell your house in 28 days

WRITTEN BY: ALEXANDRA VENTRESS ★ Digital Content Writer

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Table of Contents

When it comes to buying or selling a house, an aspect you may not be familiar with is building regulations. However, trying to buy or sell a house without them can be tricky business. 

 

But what are building regulations? What do you need them for? And can you sell or buy a house without building regs? 

 

Looking for a quick answer? Check out the interactive menu to the side. 

What are building regulations? 

Building regulations are regulations and instruments that are in place to make sure that buildings are built correctly and up to code. Building regulations approval is required for the majority of building work done across the UK and were introduced in 2010. It is a statutory requirement for you to obtain building regulations approval and you will need them signed off by a local authority in order to confirm that they are up to code. 

When do I need building regulation approval?

Whilst it can feel confusing, only certain buildings and building works require building regulation approval. Below, we have broken down which types of buildings do and which do not require it: 

What requires approval? 

  • Signing off a new build before completion
  • Heat producing appliances 
  • Drainage 
  • New electrics
  • Damp proofing 
  • Building an oversite 
  • Excavation and pouring of new foundations
  • Cavity wall insulation
  • Extensions 
  • Structural work 
  • Structural alterations 

What does not require approval?

  • The majority of repairs and maintenance (unless it involves oil tanks, fuse boxes, glazing units, or heating systems)
  • Replacing toilets, sinks, basins, and baths
  • Any work that has been carried out by a member of the Competent Persons Scheme
  • New power points and lighting points
  • Repairs or maintenance to exciting power circuits 
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What are notifiable works?

When work is carried out that requires building regulations approval, then it is classed as ‘notifiable work’. There are three levels of this notification: 

 

  • Full Plans– Before a project fully commences, a detailed plan will need to be submitted to LABC. 
  • Building Notice -Often used for smaller projects, detailed plans of this nature do not need to be submitted. 
  • Competent Person – If you use certain registered trade people, they may be able to issue a building regulations certificate on their own works. 

Why would someone build without regulations?

There are many reasons why a home seller may have a property without building regulations. It could be a case of the owner being unaware that they required building regulations approval. The homeowner may have believed the work they were doing would not be granted permission so completed without regs. They could have been trying to cut costs by using an unregistered tradesperson or by doing work themselves. 

What is the 10 year rule in building Regs?

The 10 year rule is a clause that may be applied if you own a property that has no building regs. If there has been a breach of building regulations (excluding dwellings) that has not been challenged for a period of 10 years.  

Are building regulations enforceable after 10 years?

Whilst there is no time limit on your local authorities’ right to apply for an injunction, as a rule of thumb if 10 or more years have passed since the work was carried out, then there is no serious risk of action. After 10 years, you are more than likely safe, however, there are risks involved with selling or buying a house with a lack of building regulations. 

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What happens if you don't get building regulations?

As building regs are a legal requirement in order to make sure that your property is up to code and safety standards, you can find yourself facing serious repercussions if you do not comply with building regulations. These can include:

Should the building authorities inspect the property and the alterations have failed, then they will need to be done in order to comply with regulations. This brings with it the potential of steep bills, loss of profit and a property revaluation. 

If the building authority has been notified about the lack of certification, then enforcement action may be carried out. If you are facing enforcement and do not make the changes to comply, you can be fined or even face court proceedings.  This will be the case even if the building alterations were carried out by the previous owner. 

If the structural works do meet regulations, then potential buyers may not be able to secure a mortgage on it. This will mean you may end up stuck on the open market for months, unable to secure a buyer. 

As we have already mentioned, the purpose of building regs is to keep your building safe. If your property does not meet the standard, then you are opening yourself up to a whole host of potential problems, ranging from inconvenient to severe. 

You can run the risk of insufficient insulation leaking away the heat in the property which can bring with it its own problems, such as damp and mould, and higher heating costs. 

 

There are also serious problems you may end up facing if the building work you have done is not up to code: 

 

  • Fire or flooding as a result of improperly installed plumbing or electrics 
  • Kitchen appliances overheating or breaking due to insufficient ventilation
  • Subsidence or collapse as a result of too-shallow foundations 
  • Serious trip hazards due to irregular tread on stairs or drop size 
  • The building could be at risk of collapsing due to knocking through walls without sufficient reinforcement.

What happens if I buy a house without building regulations?

If you purchase a property without building regulations, then you have a few options that you can explore in order to correct this issue. Below are some of the most popular choices when it comes to buying a home without building regulations: 

Indemnity Insurance 

The most common method to correct buying a property without building regs is to apply for indemnity insurance. Whilst this is often viewed as the cheaper and easier option, it is still a legal procedure, so it is worth talking to a conveyancing solicitor in order to fully understand the pros and cons of this option. 

 

Indemnity insurance offers you and your lender protection “where there is a defect in the title which cannot be resolved”. Whereas with a regular insurance policy where you may monthly or annually, when it comes to an indemnity policy, you only pay it once. 

 

Indemnity insurance will protect you from enforcement action taken by authorities in the case of buildings control approvals. 

Retrospective building control approval

If you have had work done that does not meet the proper regulation, then you can apply for building control approval on work that has already been taken out. This process is referred to as ‘regularisation’ and occurs when a building control surveyor conducts an inspection of your property and accesses if it’s in line with regulations and standards.

 

It can be a complicated and time-consuming process, however, if you pass, you will have your regularisation certificate.  You will need to engage with the local council if you wish to receive an inspection and building regulation requirements compliance certificate and you will need to pay for it to be done. 

 

It is worth noting that regularisation will only be available on work that has been carried out after 11th November 1985, but the majority of local councils will only issue regularisation on building work that is 10-15 years old. 

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How to sell your house without building regs?

When it comes to selling a home without building regulation compliance, you have three main options. You can sell through either a property auction, cash buyer, or an estate agent. As with any selling option, each of these selling options comes with its own pros and cons, which we have broken down for you below. 

Property Auction

One option for selling your property without a building regulations completion certificate is to put it onto a property auction. A property auction is becoming an increasingly popular selling option. An advantage to selling through a property auction is that once the gavel goes down, the winning bid becomes legally binding. 

 

However, the downside to selling through property auctions is that they are not a speedy method of sale. You may end up waiting for several weeks before you can put your property on the auction, and even if you are successful, you will still have to wait for the sale to complete, and will still be charged a commission at the end, eating away at your final profit. 

Cash Buyer 

If you are selling a house without building regulations, one route you may wish to explore is a cash buyer. Cash buyers will often buy your house regardless of the condition or location, making them a great choice for those looking to sell without building regulation approval. 

 

However, it is worth bearing in mind that cash house buying is an unregulated business, so you will need to carefully vet the company you choose to sell with if this is a route you wish to explore. You should look out for those who are part of regulatory boards such as The Property Ombudsman or The National Association of Property Buyers. 

 

It is also worth keeping in mind that cash buyers will not offer you 100% market value. They will usually buy your house for below market value, but if you are looking for a fast sale, then this is a route to keep in mind. However, in order to secure this sale, your final profit may have to take a hit. 

Estate Agent

Another option to explore is estate agents. Estate agents will undertake all of the heavy lifting involved with your house sale, such as creating a listing, marketing your property, organising viewings, and handling negotiations for you, in return for a percentage of the final sale price. 

 

Another advantage to selling through an estate agent is that they have a bank of knowledge and experience when it comes to selling properties of all kinds. 

 

If estate agents are a route you wish to further explore, read on… 

Sell to us!

Looking to save on estate agent fees after purchasing indemnity insurance? Or maybe you are seeking a sale that is fast, effortless, and free?

 

Here at The Property Selling company, we believe that selling a house should be three things: fast, effortless, and free.

 

We offer you a full online estate agent service, without the fees – because it’s our mission to change the way you sell houses. 

We will be working alongside you every step of the house-selling process, covering everything, so you won’t have to. The days of expensive solicitor fees and legal work are over, and our team of property experts will continue to be there, even after the process is complete.

 

We will market your property on popular property portals such as Rightmove and Zoopla, organise viewings, cover legal fees, and negotiate better deals all for free!

 

If you are ready to sell your home in as little as 28 days, then get in touch today and fill out one of our fast, free, no-obligation forms for your house valuation today!

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Selling and Buying a House: Should I Sell First?

Selling and Buying a House: Should I Sell First?

Finding the best avenue to selling and buying a house can be confusing, join us as we delve into all the ways to sell and buy a house.

Tom Condon
Tom Condon ★ Digital Content Writer

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Selling and Buying a House: Should I Sell First?

Selling and buying a house could take anywhere from four to twelve months, and is completely reliant on the demand and supply of the housing market as well as any property chains you may be in. 

 

There is no set way to sell and buy a house, in fact there are so many different avenues, it can be very confusing! The right avenue to follow will simply come down to what suits your needs. 

 

When you buy a house, you will need to pay Capital Gains Tax, and when you sell a house, you will need to pay Stamp duty, on top of the actual house sale and any arrangement fees or estate agent fees so it’s vital you have your finances in order. 

 

There are disadvantages and advantages to selling first, buying first or doing it simultaneously. 

If you’re looking for something specific, please check our interactive menu below:

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Should You Buy And Sell A House At The Same Time?

Selling and buying a house simultaneously is the route that most homeowners in the UK choose. This is due to the ease and convenience of not having to rent in between houses. 

 

But, buying and selling a home at the same time can be a complex process as it requires careful planning and coordination to ensure a smooth transition between homes.

What Is The Process Of Selling And Buying Simultaneously?

Selling and buying simultaneously, is the most generic way to sell and buy a house. 

 

Before considering simultaneously buying and selling a house, you should assess your financial situation and determine if you have enough funds for a deposit on the new house and if you can qualify for a mortgage while carrying the existing mortgage. 

 

You should always look to evaluate current housing market conditions, as if your local area is a sellers market then you will be able to easily sell your house. 

 

But, if it’s a buyers market then it may take longer to sell your house, but easier to buy your next one — which could end up in you spending more money on utility bills or selling at below market value to a cash buyer or auction. 

 

Due to the risk involved in the selling and buying a house process, you should attempt to coordinate the timing of your transactions to minimise the gap between selling your house and purchasing a new one. This could involve aligning your completion dates and arranging temporary housing if needed.

Advantages Of Selling And Buying A House Simultaneously

When selling and buying a house simultaneously, you will benefit from convenience, where you can avoid the need to find rented accommodation or move twice, which can save time, effort and avoid emotional distress. 

Selling and buying simultaneously can help you align your financial transactions by using the proceeds from your current home and apply them directly toward the deposit or completion costs of buying your new home.

 

Simultaneous purchase and sale allows you time to transition between homes more efficiently. 

 

You should be able to coordinate completion dates which can be beneficial to have specific time constraints or need to synchronise with other life events, such as employment changes or accommodating the start of the new school year. 

 

Selling and buying a house at the same time will also allow you to work with the same conveyancing solicitors at the same time, and minimise the conveyancing costs. If you were to sell your house and buy separately, then there would be a gap between the two processes. 

Disadvantages Of Selling And Buying A House Simultaneously

Although coordinating the sale and purchase of two properties can allow you to have a seamless move, if it goes wrong, it could produce time uncertainties. 

 

Which can be challenging to ensure that the completion dates align perfectly and any unexpected delays in one transaction can have a ripple effect especially if there are any property chains. 

 

The simultaneous transaction could create financial strain if you need to cover two mortgages or carry the costs of both properties for an extended period. It’s essential to carefully assess your financial situation.

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Should You Sell First And Then Buy?

If you have the time, or accommodation to stay in during the selling and buying a house process, then selling first and buying second may be the best option.

 

By selling first, you will have the funds readily available to buy your next property and be a more attractive buyer but you will need to rent or stay elsewhere in between houses.

What Is The Process Of Selling First And Buying Second?

When selling first and then buying a house, you should ensure that you have all your finances in order before you start the process of selling your house.

 

By staying organised, you will be able to organise and port your mortgage quickly, and ultimately make you far more attractive to the property seller. This will help avoid delays and the risk of you being gazundered. 

 

Before you sell your house, you should have already completed your research to find your next property and contacted local estate agents about houses you are interested in.

 

Once you have sold your house, you can actively view the properties and decide on a property that suits you.

 

You may need to move to a friend or relative’s property, or rent, while you find your next home, which may come at an additional cost.

Advantages Of Selling First

When selling first and then buying a house, you should ensure that you have all your finances in order before you start the process of selling your house.

 

By staying organised, you will be able to organise and port your mortgage quickly, and ultimately make you far more attractive to the property seller. This will help avoid delays and the risk of you being gazundered. 

 

Before you sell your house, you should have already completed your research to find your next property and contacted local estate agents about houses you are interested in.

 

Once you have sold your house, you can actively view the properties and decide on a property that suits you.

 

You may need to move to a friend or relative’s property, or rent, while you find your next home, which may come at an additional cost.

Disadvantages Of Selling First

Due to market conditions, you may find it hard to find a property to buy after selling yours, which means you will spend more money on finding further accommodation to rent. 

 

There is also the chance that house prices rise dramatically when searching for your next property, which may result in you ending up out of pocket. 

 

If you sell your house before buying a new one, you will need to find temporary housing arrangements which could involve renting a short-term apartment, staying with family or friends. 

 

You will also need to arrange storage for your belongings as well which can be expensive.

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Should You Buy First And Then Sell?

If you are selling and buying a house and want to buy first, then you’ll need to be able to fully fund the purchase of the new property before having the funds released from your house sale. 

 

This is one of the most risk heavy ways to sell a house but could have a massive pay-off.

What Is The Process Of Buying First And Then Selling?

When buying a house first and then selling your house, you will need to create a budget for purchasing the new home and ensure that you have the financial means to carry the mortgage of your old house and a new mortgage for the new house. 

 

When buying first and then selling your house you should begin by searching for a new home based on your preferences, needs and budget. You should engage with an estate agent to assist you in finding the right property, schedule viewings and negotiate offers.

 

Once you’ve identified a property you wish to purchase, work with a mortgage lender to obtain pre-approval or secure financing for your new home. 

 

When you submit an offer to the seller of the new property, you should negotiate the price, and completion dates before the offer has been accepted. Carry out any necessary surveys and work alongside your estate agent and solicitor to complete the necessary paperwork.

 

Once the purchase of your new home is underway, you can focus on preparing your current home for sale, including staging your home, making necessary repairs, and consider hiring an estate agent to list your property. 

 

Working closely with your estate agent, mortgage lenders and solicitors to coordinate the completion dates for both the purchase of your new home and the sale of your current one. Ensure there is alignment and sufficient time to complete necessary surveys.

Advantages Of Buying First

When selling and buying a house, buying first allows you the luxury of time to carefully consider your options and make a well-informed decision. 

 

You can thoroughly research the market, explore different options and find a home that truly meets your needs and preferences without the pressure of a pending sale. 

 

When you buy a house first, you eliminate the need to rent or arrange temporary housing arrangements. You won’t have to incur the costs of renting which can save you money and make the moving home process more convenient. 

 

Being a non-contingent buyer can provide you with a stronger negotiating position when making an offer on a new home. Sellers may view your offer more favourably since its not contingent on the sale of your current home. 

Owning a new home before selling your current property allows you flexibility in the timing of sale. You can choose the optimal time to list and sell your home, potentially allowing you to wait for market conditions to be more favourable.

Disadvantages Of Buying First

Buying a new home before selling your current one means carrying two mortgages simultaneously which can create financial burdens and increase your risk exposure. 

 

You will need to have sufficient financial resources to cover both mortgages, utility bills, insurance and other costs until your current home is sold.

 

If your current home takes longer to sell than anticipated, it can strain your finances and increase your monthly obligations. 

 

The housing market is subject to fluctuations and can be unpredictable; buying a house first exposes you to the risk of potential market downturns or a decline in home prices. If the value of the property decreases before you sell it, you may face challenges in selling it at the desired price. 

 

Buying a house before selling may limit your budget and purchasing power for the new home. If a significant portion of your funds is tied up in your current home, you may have less money available for a deposit and any necessary renovations or improvements on the new property.

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Selling And Buying A House? This Is How You Do It

If you are selling and buying a house, we can help!

 

We can offer you a full online estate agent service, without all the estate agent fees because its our mission to change the way you sell houses. We will work alongside you every step of the house selling and house buying process, covering everything so you don’t have to.

 

The days of expensive solicitor fees and legal work are over, and our team of property experts will be there to support you even after the process is complete!

 

We will market your property on popular property portals such as Rightmove and Zoopla, organise viewings, cover legal fees and negotiate better deals all for free.

 

If you are ready to sell your home in 28 days, then get in touch today and fill out one of our fast, free, no-obligation forms for your house valuation today.

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Selling And Buying A House FAQs

When selling and buying a house, you will find it easier to get approved for a mortgage if you have a property in your sights that you wish to buy. Which is why selling and buying a house simultaneously or buying and then selling may be the least stressful. 

 

If you decide to sell your house and then buy, you will be under stress to get approved for a mortgage while living in temporary housing.

When you are selling and buying a house, you should assess your financial situation, research and find a home, take your time, wait until the market favours your situation and take the big leap!

Selling a house to a first time buyer can have both advantages and disadvantages as they are eager and motivated to get onto the property ladder, they are often less complicated as there are no chains, but the first-time buyers may fail in securing financing due to a limited credit history or the house sale may fall through due to inexperience.

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Property Buying & Selling Guide: What’s The Difference Between Exchange And Completion?

What's The Difference Between Exchange And Completion?

Property Buying & Selling Guide To Conveyancing

Tom Condon
Tom Condon ★ Digital Content Writer

Table of Contents

What's The Difference Between Exchange And Completion?

It doesn’t matter if you are buying or selling a property through DIY conveyancing or the usual route, using an estate agent or a cash buyer; you will come across the exchange and completion process. 

 

Exchange is when it becomes legally binding, but you may ask yourself which came first, the chicken or the egg. 

Well, the exchange came first. 

 

The exchange of contracts shows a seller that the buyer is committed as they pay a deposit and begin to get down the gritty world of solicitors. 

 

Find out below as we delve into all things exchange and completion and what it means for buyers and sellers.

What Is An Exchange Of Contracts?

The exchange of contracts is legally binding between buying and selling parties under English law. This process is usually carried out by solicitors and conveyancers trained in property transactions.

 

The exchange of contracts can only occur after a particular set of criteria has been met, including carrying out necessary searches and agreement to contract terms. 

 

The process is carried out by solicitors and conveyancers who will read out contracts over the phone in a recorded conversation to ensure the arrangements are the same. 

 

The contracts will then be posted to the other solicitors, and once the warranty has been exchanged, the homeowner and potential buyer are now legally bound to carry out the transaction.

Why Is It Necessary To Exchange Contracts?

It is necessary to exchange contracts to ensure the process becomes legally binding.

 

If the buyer does not complete it within two weeks, the seller can rescind their contract, and the buyer will forfeit their deposit. 

 

The seller will then be able to resell their property to another buyer and could even pursue you for losses incurred if they do not reach the same sale price.

When Do You Need To Exchange Contracts?

As the buyer, you can exchange the contracts if you are committed to purchasing the property after you have made your offer and all necessary documents have been obtained.

 

You should only exchange contracts once:

 

  • The offer has been agreed upon.
  • Relevant Law Society forms (TA6 & TA10) have been inspected.
  • Surveys have been carried out.
  • Your mortgage lender has carried out a house valuation.
  • Your solicitor has carried out searches.
  • The EPC has been checked.
  • You have enough funding in place for the house deposit.
  • You have a completion date in mind, and it has been agreed upon.
  • You have put building insurance in place.
  • You have read through the contract, asked any relevant questions, and signed it once it is complete.

When Do You Need To Exchange Contracts?

You will not need to exchange contracts; your solicitor will do this. Usually, this is done over a phone call, ensuring the arrangements are identical, and then the contracts will be posted. However, it may be done in person, although this is rare.

What Is Completion On A House?

The completion process occurs on a date predetermined during the exchange of contracts. It is the last step in the property transfer process, and it is the day on which the ownership is legally transferred from seller to buyer.

 

The buyer will get the keys to the property, and the seller must move out of the property. It is also the day the money is transferred from the buyer to the seller.

What Should You Do Before You Exchange Contracts?

Although similar, the process will differ slightly depending on if you are a buyer or seller. Property ownership can only be transferred once contracts are exchanged, so checking that any paperwork has been completed is vital.

Buyer - Before Exchange Of Contracts

Because the exchange of contracts is a legally binding process, you should ensure that everything is in order before signing anything:

Your solicitor or conveyancer should do all parts of the conveyancing process, but you should always communicate consistently with them to ensure a smooth transaction.

 

You must ensure that your solicitor has completed any searches, which are the enquiries with local authorities for more information on the property.

 

You will need to agree with your solicitor on a completion date that suits you before you exchange the contracts, as the solicitor will agree with the seller’s solicitor on a completion date that will be set in stone. 

 

We also recommend that you read over the contract with your solicitor present and ask any questions about it if you are unsure, as this will ensure you know the process better, and you won’t be able to read it once the exchange has been completed. 

 

This also applies to ensuring you know what’s included in the property offers, for example, any fixtures, fittings and if you need to pay for a holding or contract deposit in case the seller requires one — which means having the funds available (£500 to £1000). 

 

If the seller attempts to renegotiate the purchase price, you should seek advice from your solicitor, who will help you negotiate them back up.

You will need to ensure that you have your mortgage in principle, which is a written estimate from a mortgage lender that indicates how much money you can borrow.

 

As well as ensuring that you have the correct funds for your mortgage deposit.

You must ensure you are covered if the seller pulls out before the exchange, as you will have no legal right to recover any costs from them. 

 

Getting indemnity insurance coverage will ensure you can recover any wasted costs, but your solicitor will be able to provide you with more insurance. 

 

You will also need to organise building insurance and ensure it is valid from the exchange date.

Seller - Before Exchange Of Contracts

As the exchange of contracts is a legally binding contract, you will need to ensure that all of your information is in order before you sign the contract:

You should ensure that your solicitor has your signed contract and signed transfer of title document and that the deposit has at least been lodged with the buyer’s solicitor and is ready for transfer.

 

Your conveyancer should also have an estimate of any mortgage redemption costs, especially if there are any early redemption charges you may have to pay. 

 

You will also need to ensure you have responded to all enquiries and provided all necessary documentation:

 

  • Warranties.
  • Guarantees. 
  • Certification of Works.
  • Signed Contract.
  • Signed Transfer of Title Document. 

 

You will also need to confirm a completion date with your solicitor.

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What Happens After The Contacts Are Exchanged?

Once the contracts have been signed and exchanged, the buyer is legally bound to purchase the property. The solicitors will need to ensure that the transfer of ownership has been registered with the land registry. 

 

If the property is tenanted, the buyer must tell the freeholder that they are the new owner. 

 

Usually, the period between contracts exchanged and completion will be when the buyer confirms removals, packs their belongings, plans the move, and contacts utilities and services to inform them of the property transfer or end of service. 

 

The buyer’s solicitor will ensure that the mortgage lender is on track to transfer the funds on completion and draw up a completion statement.

The property seller will also need to confirm removals and pack, notify utility companies and ensure everything agreed to include in the purchase is left in place, set up mail redirection and leave a set of keys with the estate agent.

 

The seller’s solicitor will confirm the redemption amount with the mortgage lender and draw a completion statement.

Is It Possible To Exchange And Complete It On The Same Day?

It is possible to exchange and complete on the same day, although this differs from the path many homeowners choose. 

 

The time difference between the two allows for necessary arrangements like property removals and ordering mortgage advances.

How Long is Between Exchange And The Completion Date?

The time between exchange and completion will vary depending on the speed of sale needed but generally will take 7 to 28 days, although it typically takes around five working days. 

 

The exchange and completion period can be affected by various factors, including the length of a property chain or if the property is being bought for cash. Most cash buyers will speed up the process, making the completion day closer to the exchange. 

 

It will also depend on the speed of your solicitors and their service.

 

If the buyer buys a new build property, there may be a much longer delay as the property may have yet to be built at the point you exchange. 

If the seller has yet to secure an onward purchase, they can agree with a buyer to set a delayed completion date to allow them to find accommodation. 

 

However, if the property buyer has a mortgage offer, they should be wary of the offer expiring as they are only valid for three to six months.

Can You Get Solicitor Service For Free?

Yes you can! Here at The Property Selling Company we believe that house sales should be fast, effortless and free. Which means that we will cover all the fees associated with selling a house for you, even including any conveyancing fees!

 

We will work with you every step of the way to ensure that everything is looked after, so you don’t have to worry about it. The days of expensive solicitor fees are over, our team of property experts are only a phone call away.

 

We will market your property on popular portal portals such as Zoopla and Rightmove, organise viewings and negotiate better deals…for free! 

 

Want to get started? Click the button below for more information and no-obligation cash offer for your property.

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What Does Under Offer On A House Mean?

under offer

What Does Under Offer On A House Mean?

Want to know more? Find out more below as we delve into what ‘under offer’ means and how it relates to you.

Tom Condon
Tom Condon ★ Digital Content Writer

Table of Contents

What Does It Mean When A House Is Under Offer?

There are two general situations in which under offer can relate to you; you are a property seller or a property buyer. 

 

Say you are a property seller; you can put your property under offer to allow time to consider any bids you have already received. If you are a property buyer and put in an offer on a property, the seller may put the property under. 

 

This can be a risky move as the property seller can still accept other offers, and you may be at risk of being gazumped.

What Does Under Offer Mean?

When a property is under offer, a reasonable bid has been presented to the seller, and the seller is considering it. 

 

Usually, the offer is below the asking price, or the seller has received multiple offers and is deciding between interested parties. 

 

If a property is under, the buyer is responsible for pushing their agenda forward and moving the process along, whether trying to get it Sold STC for their offer to be accepted or going to exchange and completion. 

 

If the potential buyer does not push their agenda forward, they risk being gazumped by a better offer.

How Long Can A House Be Under Offer?

There is no minimum or maximum period for how long a house can be under offer, and the property can remain under for as long as both parties continue to work through the contract and exchange process. 

 

However, the longer a property remains under offer, the higher the risk of another buyer coming along or the existing buyer pulling out.

Do All Properties Go Under Offer?

In most cases, the property won’t go under offer as the offer is suitable for the seller. The property seller may accept the offer quickly, which will unlikely be labelled as under. It will, however, stay on the market labelled as SSTC until the contracts are exchanged.

What’s The Difference Between Under Offer And Sold STC?

Sold Subject to Contract, or SSTC, is different from a house being under offer, as Sold STC is when an offer is accepted, and the conveyancing process can begin. 

 

When a house is under, the property seller is simply considering the offer and has yet to make a final decision — nothing about a home being under offer is legally binding.

 

Property sales can only fall through at any point once contracts are exchanged. 

 

Under offer is used by estate agents to use as a marketing exercise when an offer has been accepted but before any contracts have been exchanged as the property sale has yet to be legally formalised. 

 

This can create a sense of urgency or increase demand for more offers as potential buyers try to avoid the fear of missing out. 

 

Sold Subject To Contract is the next step in the house selling process when a more formal agreement is made between the buyer, estate agent and seller, where solicitors are instructed, and conveyancing begins.

 

SSTC and house under mean that the estate agent or seller will take the property off the market entirely; this only happens when the exchange of contracts and completion dates have been set.

 

What Happens At Offer Accepted?

Once the offer is accepted, there is no set time for completion, and it will ultimately depend on the skill and service of the conveyancers that have been instructed. The process is also legally binding once the exchange occurs.

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How Can You Make An Offer A Property That Sellers Can’t Refuse?

If you want to avoid the seller putting the property ‘under offer’ then you need to make a compelling offer that will charm them into accepting your offer as soon as possible. You can do this by:

When you find a property that you like, it’s essential that you understand what the seller wants. They could be looking for a retirement income, looking for a quick sale or want a certain amount of money. You should be able to liaise with your estate agent to find out the motivations for the seller, and this can be used to structure an offer that meets their needs.

One of the most important parts of putting in an offer on a property is to offer a fair price, you don’t want to overpay and if you want to avoid being put under offer, then you will also want to avoid going too far below the asking price. 

 

You should look at comparable properties in the local area, current market conditions and the condition of the property to determine a fair price for the home you are interested in.

Providing proof of funds can come in the form of bank statements or pre-approval letters from a mortgage lender, which can help boost the confidence of the seller in your financial situation.

Most sellers will have their own specific needs or requests when it comes to selling their property so being flexible is crucial as occasionally these won’t meet your needs. By adapting your offer to meet their requirements you can make your offer more appealing. 

 

An example of this would be that the seller wants to sell their house as soon as possible, for which you could offer to close in a shorter time frame.

By writing a personalised letter, you can let them know why you  are interested in their property and how you plan to use it in the future. This can be a great way to connect with the seller on an emotional level and make your offer stand out from the crowd.

Can You Put In An Offer On A House That’s Under Offer?

If a property is already under offer, then any other potential buyer can still view a property or still make an offer on a property that’s under.

 

The property seller can accept other offers until contracts are exchanged, in which case the sale will have been finalised. 

 

There are many reasons why a property seller may take their time to consider an offer rather than accepting it quickly. It could be that the potential buyer has made an offer below the asking price, or they could be part of a long property chain. 

 

But, leaving a house under offer for too long may damage the home-seller-homebuyer relationship and could risk you being gazundered (where the buyer lowers their offer at the very last minute).

What Is Gazumping?

If a property is under offer, and the seller is considering a bid, they are still open to accepting other submissions and are more likely to accept an offer higher than the original offer. — this is known as gazumping.

 

It can be seen as an unfair mechanism to a potential buyer but is a standard practice amongst many in the housing market as some sellers will accept higher offers for more profit.

How Can You Avoid A Relationship Breakdown?

If you are a buyer, you can ask the seller to take the property off the market, but they have no obligation to do so and can still entertain other potential buyers. 

 

It is more strategic for the seller to leave the property on the market whilst it’s under offer, as another buyer may come with a better offer. One way of getting around this is to offer the seller something in return — like paying for the surveys to be completed. 

 

Alternatively, if you want to buy or sell a house, you can do it through us! We will handle all the negotiations for you, creating a hassle-free service. 

 

Here at The Property Selling Company, we specialise in fast, effortless and free sales because we believe buying or selling a home shouldn’t be complicated. 

 

We will work alongside you every step of the house-selling process, covering everything, so you won’t have to. The days of expensive solicitor fees and legal work are over, and our team of property experts will continue to be there even after the process is complete. 

 

We will market your property on popular property portals such as Rightmove and Zoopla, organise viewings, cover legal fees, and negotiate better deals, all for free!

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Offers In Excess Of Meaning

Offers In Excess Of Meaning

Looking at what offers in excess of mean and how it can affect your place on the property ladder.

Alexandra Ventress

Alexandra Ventress ★ Digital Content Writer

Table of Contents

When it comes to the wonderful world of property, you are likely to hear a lot of acronyms thrown about. From SSTC to AIP, it seems like nothing in property goes by its full name. However, whilst you may have a basic knowledge of some of the acronyms, there are others that can leave you scratching your head.

 

For example, what does OIEO actually mean? Is it the same as offers in excess of? And what does it mean for your property sale or purchase? 

 

In this blog post, we are going to answer all these questions and more. If you know what you are looking for, check out our interactive menu on the side! 

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What does offers in excess of mean?

OIEO is an acronym that stands for ‘offers in excess of’. Whenever you see OIEO on a property, it will be accompanied by a price. It means that the seller is looking for prices over the stated price. 

 

Unlike a typical asking price, where potential buyers have a habit of under-offering, stating you are accepting OIEO, you are able to avoid being lowballed. Being OIEO will show potential buyers that you are unwilling to enter negotiations and that you must at least meet the listed price. 

What is the difference between in excess of and offers over?

These two expressions mean the same thing. They are both used to show that the seller is expecting any offers they receive to be over the guide price and are not willing to negotiate or accept anything lower. 

Why do people put offers in excess of?

There are many different reasons why a seller may list their property as ‘offers in excess of’. It could be a case of you being mindful of your budget and are trying to minimise the amount you will spend on estate agency fees and legal costs, as these are often the two costs that eat the most out of your final price.  

 

It could be a case of the estate agent believing selling OIEO could lead to a better sale. This means that although the price may be advertised lower than the homeowner was hoping for, the potential for a higher number of interested parties to bring higher offers is greater. 

 

Other times it could be a case that the property has undergone such a transformation that the estate agent cannot put an accurate price on it. Or it could be that the property is located in an area where property value differs. 

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Why do estate agents ask for properties OIEO?

If your estate agent recommends that you should want to sell your property as OIEO, then it may be because you are unable to agree on what property price to settle on. As the seller, you may feel as though your property is worth more than the valuation that your agent has provided, so they may suggest adding “offers in excess to show they are trying to get you the highest price for your property. 

 

They may also try and sell the house as OIEO as a way of encouraging interest, this is because the property will be listed as below market value, making it a competitive price. This will generate a lot of interest and make the estate agent look as though they are doing a great job of marketing.

 

Another reason why a property may be listed as OIEO is if it is at auction or an open house event, as it is a good way to encourage bidding wars. 

 

Your estate agent may also list the property as offers in excess of if it is hard to value. If you own a very unique property or there are no comparable properties in the area then it can be hard to get an accurate valuation. 

Should I sell my house as OIEO?

Whether or not you should put your home on the market as accepting offers in excess of is down to your personal situation. You should be wary as selling as OIEO can sometimes mean overpricing your property, which can then leave you with little to no offers. However, you can use this as a chance to offer your home at a lower price, which will generate interest and then drive up the price as a result. 

Can you go below offers in excess of?

Whilst it is possible to make an offer below OIEO on a property, the chances of it being accepted are very low. Because the seller has marked it as OIEO specifically it means they are asking for offers specifically above the asking price, they will be unlikely to accept less than the asking price. However, according to data from Sold.co.uk, eighty-five per cent of homes end up selling for below the asking price, so you can always test the waters and offer slightly below the OIEO price. 

 

Whilst it can be a risky move if you decide to offer under the offers in excess price, you can help your chances by making your offer more attractive. You can do this by proving you can finance the move. 

Is it rude to offer less on a house?

Sellers will often expect buyers to come in a little bit under the asking price when they put their home on the market, as this leaves room for negotiation. However, it is important that you do not make your offer too low, otherwise, the seller may not even entertain your offer.

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Does marking a property as OIEO put buyers off?

Marketing your property as offers in excess can put buyers off as they will often have a budget themselves and will be looking to stick to it as closely as possible. When you mark your property as OIEO, you are letting buyers on the property market know that you are not willing to accept less than the guide price, meaning buyers will often go elsewhere. 

 

If your motivation behind listing your property as OIEO is that you are factoring in the estate agent’s fees and legal costs, then we may have the selling solution for you…

How can we help?

Here at The Property Selling Company, we specialise in fast, effortless, and free sales, because we believe that buying or selling a home shouldn’t be complicated. 

 

We will be working alongside you every step of the house-selling process, covering everything, so you won’t have to. The days of expensive solicitor fees and legal work are over, and our team of property experts will continue to be there, even after the process is complete. 

 

We will market your property on popular property portals such as Rightmove and Zoopla, organise viewings, cover legal fees, and negotiate better deals all for free! 

 

So, if you are looking at purchasing a house marked as SSTC, or you are looking to find your next home, we can help you get sold in as little as 28 days! Fill out one of our fast, free, no-obligation forms for your house valuation today!

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