Transfer of Deeds signing

jtothec

We have just had been gazumped on a house we had had an offer accepted two weeks ago.

So we are back to square one. Today of all days our solicitor has sent us a TR1 form for the transfer of deeds to sign. Our buyers are first time buyers and in no chain.

This is the first piece of paperwork we have had to sign relating to our house sale. We have no where lined up to move into.

Can anyone explain what this is and are we bound to sell after we've signed it? Am panicking as feel gutted after today's developments.

Any help appreciated.

xylophone

Have you exchanged contracts?

jtothec

No, nothing like that yet.

As I said this is the first item from the solicitor we've been asked to sign apart from signing their instruction form.

If we sign it are we handing the deeds of the house over to them?

ethank

No. Your solicitor is asking you to sign in anticipation of exchange of contracts. Nothing can be exchanged until you instruct them to.

No doubt you are gutted, but does this mean that you will no longer sell? or will you keep looking?

jtothec

Not sure to be honest. I need a few days to think about it. We would have to go into rented accommodation as we don't have anywhere and the buyers are keen to move in.
We have children so Xmas not a good time to move into rented.
If we pulled out now I know we would annoy our buyers - we would offer to pay their survey fee.

jtothec

Thank you for your replies.
By signing the TR1 form could we pull out or are we obliged to go forward?
I thought the transfer of deeds would come at the very end of the process, just before completion.

Land_Registry

jtothec - the Transfer and it's registration does come at the end of the process so the fact you have executed it now simply helps keep things moving once the deal is done, sale completed and contracts exchanged.

In most cases they send you the Transfer but add in pencil 'Do Not Date' etc so it is just them being as prepared as possible I suspect

This online guidance may help explain where the various parts fit into the conveyancing process - you will not that the handing over of any legal documents comes towards the end of the process

G_M

As the LR Rep says, this is your solicior 'getting ready'. He works for you and does nothing without your agreement. He holds the TR1 (and other paperwork) on your behalf. Signed but undated - 'ready to go'.

He will not pass it to the other side (buyer or their solicitor) till you agree.

Your buyer's solicitor will have done the same thing - he will pass the contract to the buyer to sign (but not date), and then hold on to it.

Only when both sides are ready, and have finally agreed, will the two soliciors date the (already signed) documents & pass to the other.

Until Exchange of Contracts you can change you mind and your solicior will destroy the (undated) TR1 and contract.

However, you could of course hold onto the TR1 yourself for a while until you decide whether to continue with the sale or stay where you are. As there is clearly no imminent sale, there is no hurry to return the TR1.