Not been in a chain before - simple question

ellectrastar

I've never been in a chain before and have a quick question. When do you instruct your solicitor?

The one I have a quote from asked me at the time for the sale price of my house and the purchase price of the new one. Obviously I don't have either of those yet as my property hit the market yesterday and we are yet to find a new one. They said come back when I am a bit futher into the process.

So if someone makes an offer on my house and I accept, do I hold off contacting the solicitor about it until I have an offer accepted on my next property? Because there's not really anything for them to do on that side of things is there? No searches etc like when you buy.

After I instruct them, and they send me a confirmation letter, I will be charged a percentage of the final payment should anything fall through. I'm guessing the only thing at that stage would be if we withdrew from the market, not if we had a buyer that wasn't in a position to wait...?

I've written a lot for a simple question, sorry!

eddddy

I guess you want a quote from the solicitor for doing your sale/purchase. The quote will depend on sale/purchase prices.

So ask for a quote, assuming that you sell for £x and buy for £y. Maybe give those same numbers to some other solicitors, if you want to compare quotes.

The quote may change, if the final numbers are very different from £x and £y.

I'd suggest that you choose your solicitor soon, so that you can give details to your buyer/seller when an offer is accepted. But tell the solicitor not to do anything chargeable, until you instruct them accordingly.

ellectrastar

Sorry, I've re-read what I wrote and it does sound that way. I have got a quote and gave them guestimated sale/purchase price. I'm aware of the change in the price they've quoted should my sale price go up (unlikely) or the purchase price alter (hopefully that'll be lower!).

My question really is what if I get an offer and accept it, but I haven't yet found a place to move to? Do I instruct the solicitor at that point (even though there wouldn't be anything for them to do??) or do I wait until I've found a place and had my offer accepted?

I'm just wondering if we had a buyer that pulled out whether we would be charged, as we would obviously still be on the market for sale and require them to deal with it when the next one went through. When I asked the solicitor they asked if I would be able to purchase without a sale, and I said no, and they said the incremental charges would still apply.

My main worry is that we haven't found anywhere, and if someone offers on ours and we accept and get the ball rolling that it might go wrong - like they can't wait for us to find somewhere or something.

DumbMuscle

We don't know the cancellation terms for your particular solicitor - you'd have to ask them (I suggest doing this via email and setting out the situation you are asking about as clearly as possible, to avoid misunderstandings). It is also worth asking if cancellation fees apply if you simply instruct them to open a file and undertake no work until you have found a place to buy.

eddddy

ellectrastar wrote: »

My question really is what if I get an offer and accept it, but I haven't yet found a place to move to? Do I instruct the solicitor at that point (even though there wouldn't be anything for them to do??) or do I wait until I've found a place and had my offer accepted?

It's up to you. You can tell your solicitor not to do anything until you've had an offer accepted on a place to buy. Or you can tell them to get on with preparing for the sale (which would make you liable for fees).


TBH, it's more a case of the 'psychology' of your buyers...

Some buyers might be worried that you've accepted their offer, but nothing is happening - others might be fine.

If you commit to some solicitors fees, it's an indication to your buyers that you are serious about selling (and less likely to change your mind on a whim).

Similarly, if the buyers commit to some solicitors fees, it's an indication that they are serious about buying (and less likely to change their minds about buying your house on a whim).

ellectrastar

DumbMuscle wrote: »

It is also worth asking if cancellation fees apply if you simply instruct them to open a file and undertake no work until you have found a place to buy.

They sent me a list of incremental charges in percentage of what I would owe and at what stage. After "receipt of instructions and opening letters" the charge is 10%. So as soon as I instruct and get a letter I'll be liable I guess. I asked if the purchase was unaffected, but the sale fell through would we only pay the relevant percentage of the sale fees (as they listed sale and purchase charges separately) - they said could I purchase without selling - I said no - they said the fee would still apply. They laid it out like this...

[FONT=&quot]On your purchase[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]After receipt of instructions and opening letters - 10%[/FONT]
[FONT=&quot]After receipt and consideration of contract package and submission of searches - 30%[/FONT]
[FONT=&quot]After preparation of additional enquiries, consideration of answers and search results - 40%[/FONT]
[FONT=&quot]After final report prior to exchange - 50%[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]On your sale [/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]After receipt of instructions and opening letters - 10%[/FONT]
[FONT=&quot]After preparation and submission of contract package - 30%[/FONT]
[FONT=&quot]After preparation of replies to enquiries and standard additional enquiries - 40%[/FONT]
[FONT=&quot]Immediately prior to exchange - 50%
[/FONT]
So I'm guessing if the sale fell through and I hadn't initiated the purchase side I would just be charged for the sale side. Then it would start again once I accepted another offer? I think this is what they must mean...

I think I am also worrying about how long a buyer is prepared to wait if we haven't found anywhere yet. We don't want to move into rented accomodation. I guess we let the buyer know that we are yet to find somewhere and see what they say??