Design a better house buying/selling system.

Romani_Ite_Domum

Debt_Free_Chick wrote: »

My observations, just to add to the debate
How would potential buyers find properties for sale?

You don't need an agent to privately sell a car so why a house? Internet advertising and weekly papers similar to car traders

Needs to be defined e.g. how old can a survey be? Who would be responsible for any defects occurring after the date of the survey?

One of the main problems is something that crops up from the title deeds, rights of way, illegal extensions, boundaries. The pack should be available to a potential buyer before they make an offer. A basic non VI valuation report should also be available outlining a basic condition of the property and what would need to be looked into with surveyor or structural engineer.

With an alternative system for those who do not use email etc. If there are to be electronic signatures, how will security be enforced, to ensure the signatures are genuine?

Of course a few legal documents need to be hard copies. There are encryption methods out there that would ensure electronic queries are genuine. The technology exists to speed up the process. There is no need to have to resort to sending by post in this day ands age.

(Incidentally, in my experience of three sales/purchase in five years, everything has been done electronically. I simply had to print off the contract, sign it and then post it). This is how it should be across the board.

Not sure what you mean by this - isn't this the present system, whereby deposits are paid in time for exchange of contract, by which time the price is agreed?

It is far too easy for people to make/accept an offer on a whim and then change their mind. I am talking about a penalty for time wasting. I am not talking a huge amount. Perhaps 0.5% of offer. This would deter time wasting if a couple of £K was a stake. It would also deter gazumping.

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olly300

Romani Ite Domum what counts as "time wasting"?

If I put in an offer on a house, had a survey done, was happy with it and found during my searches that they were going to build a nuclear power plant down the road then I would pull out. Under your scheme this would be time wasting. It is solicitors who currently conduct searches and many of the posters on here recently have had problems with finding out that their property is build on contaminated land.

This means a HIP must include search information of the local area.

Romani_Ite_Domum

olly300 wrote: »

Romani Ite Domum what counts as "time wasting"?

If I put in an offer on a house, had a survey done, was happy with it and found during my searches that they were going to build a nuclear power plant down the road then I would pull out. Under your scheme this would be time wasting. It is solicitors who currently conduct searches and many of the posters on here recently have had problems with finding out that their property is build on contaminated land.

This means a HIP must include search information of the local area.

A search included with the "HIP" would need to be included but would also rapidly become out of date. A reliable system of open access to planning applications would be necessary. Some LAs already have this in place.

In that case you would already know about the nuclear power plant before you made the offer.

JayScottGreenspan

1) Anyone can offer whatever they want on a house. And you can invite whatever offers you like as well. I think what we need to change here is the culture, not the rules.

2) Fair point. Forget HIPs, it'd be better if all sellers had to get a proper survey, to avoid replication of the task by numerous buyers. (I think the surveyors institute (or whatever they call themselves ) successfully lobbied for the removal of the survey from the HIPs - they would obivously prefer this uneconomic duplication to continue).
Not sure you could stop people making a bid with subjectivities that may later void it.

3) You could write this into your contracts if you liked. Doesn't mean anyone would accept it.

Debt_Free_Chick

Romani_Ite_Domum wrote: »

A reliable system of open access to planning applications would be necessary. Some LAs already have this in place.

ALL planning applications are in the public domain.

True - not all are online. But for those authorities that don't give online access, you need only visit the Town Hall, Council Office or "Community Access" access.

You then need only ask to see all the Planning Applications and Decisions for a specific postcode - that relating to the proposed property purchase - and this will cover (approx) five or more neighbouring properties. Widen the postcode if you want to look further.

A good place to start is the Planning Portal. The Portal will tell you if your Local Planning Authority has an online facility, or not.

I would urge you to use this (and undertake your own research) even though your solicitor will undertake "the relevant search". An hour or so online or in the local Council office can pay dividends.

Romani_Ite_Domum

Good advice DFC and really what I was getting at. This system should be made available to all local councils.

Debt_Free_Chick

Romani_Ite_Domum wrote: »

Good advice DFC and really what I was getting at. This system should be made available to all local councils.

Glad to have helped

Your comment raises an interesting point - shouldn't we, as buyers, make more of an effort?

Yes, I know we pay Solicitors to "do a job" but most of us want a "low priced" job. That's fine, provided we understand that we only "get what we pay for" and if we get off our fat butts and do more, we can make a more informed decision

Having said that, we all seem to be getting more parochial or NIMBY or paranoid .... years ago, neighbours lived with eachother "cheek by jowl" and revelled in the sense of "community or neighbourly spirit". Now - we seem to want all the convenience of modern living (transport links and retail/local facilities) whilst expecting to live in "splendid isolation" from all others with "privacy" and "rights". Hence the need to disclose "disputes" with neighbours which, years ago, would have been "mere discussions" that we had with neighbours over a cup of tea - or "over the garden fence".

<sigh>

Kind regards

Dead_Eye_Jones

My EA was very helpful, Im very glad they were there to help me through the process. So Id like to keep them. However they need to be held accountable and subjected to greater control. Draw up a code of conduct to which they are duty bound by, in the same way as a financial advisor is.

I think HIPS are a good thing, but they must cover everything so that the buyer doesnt have any further outlay. At the moment it seems pointless if one still has to get a survey done anyway. Its just repeating work.

Finally, something should be done to stamp out gazumping. Not sure the best way to do that.

mr218

the current system is not perfect and causes a lot of stress and there are many steps in the process which encourage obfuscation.

A better way would be to have a legally binding contract with the aid of a 5-10% deposit. you agree to buy a property and pay your deposit. The seller has to fill in a detailed questionnaire about all sorts of things like disputes in the neighbourhood, structural issues, previous repairs, etc etc, which they must answer truthfully and is a legal document. you have a 15 day cooling off period. within that period you do your survey and any issues arising can be used to negotiate a change in price if both parties agree. if you cannot reach agreement or you have just changed your mind or you have got cold feet, you withdraw without any penalties within the 15 day cooling off period. if you decide to proceed you fix a date within a month to complete. that way from start to finish you take 6 weeks to complete.

After that if either party changes their mind, then they pay the amount equal to the deposit to the other party. so even the seller has to pay a compensation to the buyer.

that way both parties know that they cannot waste other's time and money. you need to be pretty sure and serious.

chains become a real issue. so either the person packs up all their belongings into storage or you rent and move on to your next purchase. if things are such that you can coordinate a sale and purchase then you can do so.

your mentality has to change and you should separate your sale from your purchase.

Of course this process is not without its flaws, but what really gets to people is the way a transaction can drag on and on. a buyer can keep dragging the sale over arranging surveys and searches etc. same can be said of the seller as well. So if the timescales are fixed and you only purchase a property when the funds are liquid then the timescale becomes feasible and you have more control

phlash

Aim: Simplify house buying/selling

Procedure: 1) Take a brief case full of money and give it to the vendor.
2) The vendor then gives the buyer a couple of bits of paper and keys.
3) Vendor leaves with briefcase.

Process length: 1/2 Hour.