How Does the Homebuying Process Work in the UK?

So who is who?!

• Vendor:

The vendor is the party selling the property. They may be selling their own home, an investment of theirs or on behalf of someone else. The sale may be due to a family bereavement, breakdown or simply a need to upsize or downsize. Whatever their reasons for selling they will be keen to achieve as many of the following things as possible:

o  The highest possible sale price,

o  A straightforward sale,

o  Occasionally there may be some sentiment attached to the sale in which case they may have a preference about who they sell their                                          property to, i.e a family home sold to a young family.

A vendor will usually be advised by their selling agent on market value, advertising strategy and viability of any offers made. The selling agent will usually be the party undertaking the viewings and will act as a go-between for the vendor and prospective purchasers.

The vendor’s ultimate goal is to sell their property.

• Purchaser:

A purchaser, or prospective purchaser, is a party who is viewing the property with a view to making an offer and buying the property. Purchasers may be buying for themselves or on behalf of someone else or a business. The purchase may be one for them to enjoy personally or it may be intended as an investment and may be let out to tenants. Purchasers are generally motivated by one or many of the following:

o  Purchase price (usually the lower the better!),

o  Area in which the property is situated,

o  How quickly the sale could proceed once an offer is accepted.

• Estate Agent/Selling Agent/Realtor:

It is possible that a property owner might market their property themselves but this is still an uncommon practice within the UK. There is almost always an agent involved who will advise a vendor on their sale whilst also managing the marketing and viewings of a property. Communication between a vendor and purchaser is usually conducted via the agent (and later the solicitors). It will be the estate agent’s job to chase the sale through to completion, ensuring all parties are kept informed and engaged throughout the process.

An Agent has a duty of care towards the purchaser and must be mindful of not miss-selling the property but their Client is the vendor and, as such, it is their responsibility to ensure that the vendor’s best interests are looked after; in real terms this usually means ensuring the property is sold to the highest bidder who can proceed to a sale in a timely manner. 

• Freeholder/Managing Agent/Management Company:

Where a property is held on a leasehold basis, there are additional parties involved who will play an important role in your purchase and future ownership of the property. The Managing Agent will communicate on behalf of the Freeholder whilst the Management Company acts on behalf of Leaseholders who have either purchased the freehold or have obtained the Right to Manage the building. The responsibility of these parties during the sale/purchase process is usually solely to provide information regarding the financial and practical management of the building or grounds in which the property is located. 

• Conveyancers/Solicitors:

Conveyancers or conveyancing solicitors are instructed by both the vendor and the purchaser and they act on their Client’s behalf to ensure the sale is made in a legal manner. The conveyancer will check various elements for you to ensure there are no onerous convenants or, where ground rents and leases are present, costs that are likely to spiral in the future and affect the future sale or value of the property. They can advise you of any likely property development in the vicinity of the property, whether the boundaries appear to be correct (they may liaise with your Surveyor in this respect) and ensure you understand the responsibilities and liabilities regarding your purchase. After the Estate Agent, the Conveyancer is usually the most costly in terms of fees charged for a service and it is essential that you make use of your instruction to ensure you understand the purchase you are making. The conveyancers will communicate with their Clients and each other, helping to ensure all parties are kept motivated and engaged with the sale/purchase through to completion.

• Building Surveyor:

Alongside the conveyancer/solicitors, your Surveyor is the person who is wholly on your side and looking out for your best interests. You employ a Surveyor to attend the property and undertake an inspection of all accessible areas. If you have any specific questions or concerns regarding your prospective purchase you should discuss these with the Surveyor prior to their inspection. The Surveyor will produce a clear and detailed report which will help you to understand exactly what you are buying and any issues that require your, or your Legal Advisor’s, attention. Depending on which survey you choose you will receive varying levels of information; if you’re not sure which survey you need you should discuss this with the surveyor as part of the instruction process.

Once your report is complete you should take time to read the information and consider any issues that are raised. Prior to taking any action or sharing the report with any other parties you should take the time to discuss any elements with your Surveyor. Part of the service you are paying for is this follow-up so make sure you use it! 

We strongly recommend that you never share the whole report with any party other than your Legal Advisor. The report is your property and you spent your money on it. You might think that you have no need of the report if you withdraw from the sale and the estate agent or vendor may be very keen to take it off your hands; there remains value in your report and you should be careful not to simply give it away! If a report is shared with other parties the Surveyor’s liability and responsibility remains solely to the original Client and can not be transferred.

• Other Contractors:

Following the inspection of the property, your Building Surveyor may recommend further inspections by other contractors to provide you with further information or quotes. These typically include:

o  A structural engineer’s report

o  A gas engineer or electrician’s report

o  A drainage CCTV report

It is usually recommended that you obtain these reports prior to exchange of contracts in order to ensure you have the fullest possible picture of what you’re buying as well as allowing time for any renegotiations that may be necessary.

At Chichester Surveyors we know that this is a stressful process and our aim is to help alleviate some of that stress. 

Our Surveyors are experienced in all areas of property and have extensive knowledge to help you. 

Give us a call today to find out how we can help you!