Few questions re contract of purchase

HappyLady_3

Hi guys!!


I have been reading this web site and the forum for years, and now its my turn to ask ;-). We are in a process of buying our first house so fairly unexperienced in the matter.

Firstly, is "contract rate" condition really a standard clause in the conveyancing contract? I want this out, however, our solicitor is adamant he would not be able to negotiate this.

Vendor is not keen to provide copies of the boiler service certificate or electrics certificates... and states we should have our own inspections. Do you think this is acceptable?

Indemnity policies re building regs / extensions.... what are these like? Vendor is offering one, what should I look out for?

I have started off with these... and will post some more later ;-). Thanks for all your comments!

HappyLady_3

No-one able to help?

Richard_Webster

Firstly, is "contract rate" condition really a standard clause in the conveyancing contract? I want this out, however, our solicitor is adamant he would not be able to negotiate this.

Completely standard at 4% over bank base rate. Anything higher should be negotiated down. It only applies if you don't complete on the day you agree to complete in the contract and you are you going to do that aren't you? So what are you worrying about?

Vendor is not keen to provide copies of the boiler service certificate or electrics certificates... and states we should have our own inspections. Do you think this is acceptable?

As far as boiler is concerned either seller hasn't had a service or has lost the records or the solicitors can't be bothered to ask their client for the papers. If there are records then it is reasonable that the seller should produce them.

Same applies to electrical certificates for new work done since 2005. There could be a safety issue here - but you also have to get it in context. Requiring certificates for newish work is fair enough but you have to realise that certificates are not normally available for work done before 2005 which could be done to a much lower standard and most people done't seem to be too concerned about that.

Surveyors usually say that the electrics should be checked every 5 yaers and a certificate obtained - hardly anyone who is not letting their property does this, so if you looking for a certificate for the whole electrical system the sellers are quite reasonably saying that is up to you.

Indemnity policies re building regs / extensions.... what are these like? Vendor is offering one, what should I look out for?

A Building Regs policy covers you if the Council take enforcement action in respect of a contravention of the Building Regulations. As the policies are only generally available when the work is more than a year old and Councils hardly ever take action after that period, the policy is not much real use to you. Its main function is to keep your lender happy and for you to produce when you come to sell. There is no cover if the building falls down because it doesn't comply with the regulations.

The main point about Building Regulations is that you need to satisfy yourself that you are happy with the work and on that score you need to take your own surveyor's advice about whether he can see any faults of problems. Also bear in mind that depending on the age of the house the original construction may well have been to much lower standards then those that apply now so if you can put figures on it - if modern work doesn't quite comply with the regulations but is 95% of what is now required you might find that the original part of the house is only 80% of what is now required.

I'm not sure what other policies you refer to - if you can tell me then we can go into it further - and your solicitor should be explaining all this to you.

poppysarah

Get the boiler looked at. Won't cost you much and then you'll know whether it's on it's last legs or not.

You can look up the boiler number online and get a good idea of how old it is too.

HappyLady_3

Thanks for your comments.

Richard
of course we are going to complete, as agreed, however, if money is paid after 2 pm this clause applies. I am rather concerned about this, as the money for completion is coming from the bank, not me. I have asked my sols to add "per annum" after 4% and they said it would not be possible. Is it just me how is being so pedantic?! Clause states: " 4% above the Base rate of bank of yzx from time to time"
Is this ok?

Doozergirl

HappyLady wrote: »

Thanks for your comments.

Richard
of course we are going to complete, as agreed, however, if money is paid after 2 pm this clause applies. I am rather concerned about this, as the money for completion is coming from the bank, not me. I have asked my sols to add "per annum" after 4% and they said it would not be possible. Is it just me how is being so pedantic?! Clause states: " 4% above the Base rate of bank of yzx from time to time"
Is this ok?

The interest is calculated on a daily rate. if you complete after 2pm then you're still completing in the right amount of time so there's no interest to pay.

The sale contract is a standard one used across the board. It's used by thousands upon thousands of contracts every single year. I've never felt the need to try and alter a standard clause. And when completion has been delayed, I received my money and I've paid the money too. And it's been calculated on every day that's been late, never received or paid extra for completing after 2pm - in fact I'm not that I've ever completed after 2pm. Where are you in the chain? It's normallly done and dusted by lunchtime if everyone has got the money to the solicitors in plenty of time.

I think you're stressing about something not worth stressing about. Even if you had to pay for late completion after 2pm (which you won't) then we're talking about something like £10 per £100k of the purchase price. You'll spend more money with your solicitor trying to fight it out than you ever stand to pay to them in penalty interest. And 'per annum' doesn't mean anything reall yin addition to what's written, does it? We know it's calculated daily at 4% over base. I don't see what 'per annum' even adds?

If your solicitor notifies the mortgage company in plenty of time - ie. if you leave plenty of time between exchange and completion.

sonastin

HappyLady wrote: »

Thanks for your comments.

Richard
of course we are going to complete, as agreed, however, if money is paid after 2 pm this clause applies. I am rather concerned about this, as the money for completion is coming from the bank, not me. I have asked my sols to add "per annum" after 4% and they said it would not be possible. Is it just me how is being so pedantic?! Clause states: " 4% above the Base rate of bank of yzx from time to time"
Is this ok?

If you complete that day but after 2pm, the interest that it is going to incur is less than the cost their solicitor phoning yours to ask for it so I really wouldn't worry about it. It really is an absolutely standard term that only comes into play if you don't complete as planned.

HappyLady_3

Thanks guys! I understand its standard, however, it concerns me that rate 4% is there on itself. It does not state 4% on what. I work with contracts every day (not conveyancing obviously) and this would not be something I would be happy about.
If this is 4% per annum, pro rata, does is it really such a problem to amend that?
I am really shocked by the state of the conveyancing contracts, 4 sad pages full of mistakes (even our names are spelled wrongly!!).

Also, my solicitor is stressing me out... I am desperate now... they would not let me have a copy of Local Authority Search unless I pay for their photocoping charges!!!

G_M

Ah - your probelm seems to be in the selection of solicitor. The contracts are standard and used by 1000s of house-buyers every year.

The 'mistakes' are not in the standard contract terms but in the bits the solicitor fills in (your name is unique rather than standard!)

HappyLady_3

G_M you are spot on!! Wrong choice of solicitor. How could have I known? :-( Reviews on the internet were not all bad...

They (my sols) are refusing to provide any information in addition to they last "report", not even answers to the queries they have raised with the vendor's sols. Apparently, they are satisfied with the responses, hence I don't need to know what the responses are...
Its a two people chain we are talking about, and it has been going on since June... :-(

Don't know what to do now. Trust them and get on with it? Complain? Insist on information I want? Find another solicitor and potentially loose the house?
I despair, really... this whole situation is making me ill.

And then there is a poor vendor... just wanting to move on... pushing me to exchange asap.

G_M

Richard Webster is best placed to advise on how to deal with solicitors who refuse to pass on copies of documentation you request/require.

I'd have thought you have a perfect right to see all documentation relation to your purchase.

Depending on their terms of business they might be entitled to charge photocopying - one reason it's always important to check quotes and Ts of B carefully before instructing. Even with solicitors!