What To Look Out For In Your Conveyancing Purchase

Posted on February 7th, 2018 by Kerry Davies

Buying or selling a new home can be stressful. Whether it’s choosing a location or struggling to work out what kind of property you need, there will always be worries, especially when it comes to the transaction itself.

One of the most common concerns among home movers is a transaction falling through altogether, something which can be seriously costly. According to Which? the average amount lost was a painful £2,899, with 5% of people losing more than £5,000.

So what can cause a transaction to fall through?

Delays

Issues with the property chain are one of the most common problems. According to the Which? research, this is the reason for around one in five deals falling through.

Delays elsewhere in the chain can cause havoc with a property deal, whether that’s because they allow time for someone to change their mind about a transaction, or a mortgage offer expires and the buyer is unable to arrange alternative finance.

There isn’t a huge amount that you can do about delays in other areas of the chain, other than ensure that you aren’t responsible for unnecessary hold ups on your own transaction. That means getting your documentation signed and sorted as soon as you receive it, rather than putting it on the side and forgetting about it.

Gazumping and Gazundering

 Two other common reasons for property deals falling through are gazumping and gazundering.

Gazumping is when the vendor pulls out of a deal because they have found a buyer who is willing to pay more, while gazundering is when a buyer reduces their offer at the last minute, perhaps because they have discovered a problem with the property following a survey.

You don’t pay the deposit on time

Incredibly, this does happen. This is very much an avoidable issue – make sure your deposit is in a single account and ready to be paid ahead of time. Fail to pay it on time and you may have to pay interest, so it’s a costly mistake.

You don’t have finance in place

Most of us rely on mortgage finance when buying a property. It may be that you agreed a deal expecting to have a mortgage sorted, but when the time comes for a formal application, the lender no longer wants to give you the money. Alternatively, delays further up the chain may have caused a mortgage offer that you did have to expire, leaving you exposed.

Whilst moving home can be stressful, it doesn’t have to be.

 

Gordons Property Lawyers are highly experienced at what they do. Speak to one of our professional team today by calling 01628 308 380.