You have found the ideal property at the right price and you are ready to go. When you buy any property in the United Kingdom you will need to go through the legal process of conveyancing. Most people believe that conveyancing cannot go wrong, but property deals fall down every day due to conveyancing problems.
You cannot escape the legal process of conveyancing. When you purchase a property in the UK the title has to be legally transferred to the purchaser. While it is a simple process in principal, buyer and seller problems can cause conveyancing to go wrong and deals to fall through altogether.
Conveyancing Problems that could jeopardise your Property Investment
There are a number of conveyancing problems that can scupper the transfer of the property you intend to purchase. These can be financial problems, process problems or just simply human error. So take note of these issues and make sure that they don’t happen to you:
Failure to pay the Deposit by the Due Date
You are in total control here and the problem should not arise, but unfortunately it does from time to time. The fault can lay with solicitors or even your bank. Although this problem does not usually mean a property sale falls through, you could end up paying interest on a deposit that isn’t paid on time.
When a deposit does not go through on time the seller will contact their solicitor who will then call yours. There may be a temporary hold up somewhere so check with your solicitor and your bank prior to the due date to ensure that the deposit will be paid on time.
Something is not complete and Holding up the Process
You are sure that everything has been completed and you are ready to go. All of the required forms have been completed and delivered to the appropriate parties. But news of a delayed sale is on the horizon.
Maybe the bank has discovered an error in your mortgage papers, an important document is missing or there is an important document needing a signature. You must get onto your conveyancing solicitor immediately to fix any of these problems or risk losing the sale.
Your Seller’s Bank can’t settle on time
Most sellers will have mortgages secured on their properties, and when this is the case you are in the hands of the seller’s bank to process everything on time. There have been instances where a seller’s bank isn’t ready to accept the money.
Or there could be missing documentation or an important person in the process absent for some reason. This should only create a temporary delay, but you do not want things to escalate too much.
Your Financing is not in place
Most property investors use the power of leveraging to buy new properties. This is fine, but if you have signed a contract which states that the sale of the property will only go through if you have the financing in place by a certain date, you could be in trouble.
You need to do everything in your power to secure the necessary financing before the due date. If not you could lose the sale due to a lack of confidence on the part of the seller. If you are having problems securing the finance then let your conveyancing solicitor know in good time so that they can request an extension.
Reap the Returns of Good Property Investment without the Hassle
When you partner with an experienced property investor like CPI you will be able to just reap the returns without any of the hassle. We call this our “hands off” property investment partnerships and you can find out more by contacting us here.