|
Property Selling Terms of Engagement
Contact us Click here for an instant conveyancing estimate
A Solicitor-Based Property Selling Service
Description & Terms
Manchesters Solicitors was founded in 1979 by Richard Manchester, who remains as consultant to the firm.
We are now pleased to be able to offer a professional service combining both aspects of selling a property all under one roof.
Please take time to read through this Information Pack and contact us to discuss our terms further or arrange a free valuation of your property.
020 8657 5599
email: Click for property appraisal request www.manchesters.co.uk
19/21 Limpsfield Road, Sanderstead, South Croydon, Surrey CR2 9LA
Regulated By The Solicitors Regulation Authority
Contents
Information For Sellers 3
Terms of Engagement : Sole Agency 4
Legal Work On Sale 7
Information For Applicants 8
Legal Services 9
Information For Sellers
⇒ SOLE AGENCY : FROM ½% SALE COMMISSION AND CONVEYANCING ALL INCLUSIVE (PLUS VAT)
⇒ MULTIPLE AGENCY : Will be agreed based on value (PLUS VAT – UNLESS OTHERWISE AGREED) SALE
COMMISSION AND CONVEYANCING ALL INCLUSIVE
⇒ NO COMPLETION : NO CONVEYANCING CHARGES
⇒ STREAMLINED SELLING
⇒ LEGAL CARE FROM OUTSET
⇒ SELLERS PACK
⇒ OFFICE WINDOW DISPLAY
⇒ LOCAL PRESS ADVERTISING
⇒ INTERNET ADVERTISING WITH RIGHTMOVE
Terms Of Engagement : Sole Agency
PLEASE COMPLETE
Date………………………………………………………
Property Address :
Interest to be sold : Freehold/Leasehold/Commonhold
Percentage Rate : %
Agency Terms : Sole/ or Multi agency
Asking Price : £
Croydon HIPs price (freehold) where we do a personal search £274.50 (up to 3 beds)
Croydon HIPs price (freehold) where we do a personal search £297.88 (4 beds or more)
Croydon HIPs price (freehold) where we do an official search £328.50 (up to 3 beds)
Croydon HIPs price (freehold) where we do an official search £357.88 (4 beds or more)
Cheque for HIPs in favour of Manchesters for £ attached
1. If you instruct us we will:
• Display a photograph of your property in our office window;
• Advertise your property in a local paper;
• Advertise your property on the internet;
• Prepare property particulars to hand to applicants;
• Prepare a "Seller's Pack";
• Erect a sale board (unless you specify otherwise); and
• Carry out the legal work on the sale. (Click here for details).
2. Our fee for this work is based on the ultimate sale price and is from ½% (sole agency). We will advise you how this is apportioned between selling fees and legal fees on sale, plus VAT and payments to others in particular the Land Registry fee for office copies (approximately £12 unless covered by HIPS-see 8 below) and any other payments to others, we will notify you of in advance. You are liable for our fee only if the sale proceeds to completion, when it is deductible by us from the sale proceeds. These fees are exclusive of legal disbursements and apply only if you instruct us both to seek a buyer and to do the legal work on the sale and we introduce the applicant to you as a result of any of our efforts in 1. above. If you wish us to act also on a related purchase, we will gladly provide an estimate.
3. We will not act for anyone but you (except where we also act for another party in the chain of transactions who is not an immediate party to your transaction). Where information comes to our notice affecting a transaction we are at liberty to reveal this to any client of ours. When repaying a mortgage we may also act for the lender.
4. The solicitor named below will do the work although he may be assisted in the search for a buyer and in the more clerical aspects. If at any time you feel your needs are not being met, please do not hesitate to contact that solicitor or the other partner named below, since it is important that your concerns are dealt with promptly and efficiently. In accordance with Law Society policy, we operate a complaints procedure, details of which are available on request.
5. Sole Agency – we are instructed on a “sole agency”, that is to say for a minimum period 12 weeks from today you will not instruct anyone else to seek a buyer. We are entitled to our fee if you complete a sale of your property to a person who first views the property during the sole agency. After that time we are only entitled to our fee if the applicant first becomes interested as a result of our efforts in 1 above and which interest leads to the applicant completing a purchase of the Property. You should be aware that this may result in other agents’ fees becoming payable in addition but we take no responsibility for determining at any stage whether you may become liable to pay another agent’s fee in addition to our own and we recommend that you seek independent legal advice on that prior to entering into a binding contract for sale. Subject to this minimum period you may terminate the sole agency by written notice and the Sole Agency will come to an end on the fourteenth day after we receive the notice.
In the event of an agreed sale, the sole agency (or multi agency) period will be suspended for the duration of the sale and will resume in the event that the property returns to the market.
If at any time during the sole agency (or multi agency) period the Home Information Pack for the property ceases to be valid or is found to be invalid in respect of the requirements of the Housing Act 2004 we shall immediately cease marketing the property until such time as a valid Home Information Pack has been commissioned. The period for which marketing has ceased because of the absence of a valid Home Information Pack shall not count towards our sole agency (or multi agency) period.
6. Multi-Agency – If we agree to market on a multi-agency basis then the maximum number of other agents we are prepared to market alongside is [ ] and our fee of [ ]% of the eventual sale price will be payable if the applicant first becomes interested as a result of our efforts in 1 above and which interest leads to the applicant completing a purchase of the Property. You should be aware that this may result in other agents’ fees becoming payable in addition but we take no responsibility for determining at any stage whether you may become liable to pay another agent’s fee in addition to our own and we recommend that you seek independent legal advice on that prior to entering into a binding contract for sale.
7. We are not valuers and are not therefore in a position to guarantee that the asking price or the ultimate price is appropriate.
8. Applicants will be invited to inspect the Property. Our representative will not attend except by special arrangement and it may be necessary to charge a fee. Applicants will be provided with a written explanation of our role, and we attach a copy of this. We will notify you of all offers received. Applicants will be asked to demonstrate in writing how they propose to finance the transaction, and if this involves related sales, we will tell you what we have been able to find out about those also. We cannot guarantee this information or the Applicant's genuineness or readiness or ability to proceed at any stage. Dealing with the legal aspects does provide useful opportunities to monitor these matters and we will tell you as soon as questions arise.
9. HOME INFORMATION PACKS
· Home Information Packs (HIPS are pre-requisites to marketing as follows:
1st August 2007 - 4 + bedrooms
10th September 2007 - 3 + bedrooms
14 December 2007 - all properties
· They need:
1 Index
2 Statement of terms
3 Local Search
4 Water search
5 Evidence of title
6 Energy certificate
7 For leaseholds add to the HIP cost as below the individual managing agent/landlord’s cost for following information:
Ø Copy lease
Ø Regulations
Ø Management details
Ø Details of outgoings
Ø Last 3 years’ accounts
Ø Current service charge and ground rent receipts
Ø Buildings insurance premium receipt and summary of cover
Ø Summary of required works and amounts and arrangements for payment
We will build a HIP by providing 1 and 2 and applying for 3 to 7, where Applicable.
· We offer a choice for 3 above - personal search or official search - prices are subject to variation for payments to others and official searches vary with the council concerned. Please note that there can be extensive delays on a personal search.
· Where we are instructed to market, the HIP price (freehold properties) where we do a personal search is approx. £ 300 as follows If this is your choice, please provide £300.00 on account. Payments to others may vary and if so we will let you know:
£
Combined Personal Local Search & Water Search
(search company’s fee) : estimated 140.00
Land Registry Entries & Filed Plan 12.00
Energy Certificate (provider’s fee) 130.00
TOTAL 282.00
· The HIP price (freehold properties) where we do an official search in Croydon (other Councils vary) is approx. £410 as follow. If this is your choice, please provide £410 on account. Payments to others may vary and if so we will let you know:
£
Official Local Search (e.g. Croydon Council) 218.00
Water Search (water company’s fee) : estimated 50.00
Land Registry Entries and Filed Plan 12.00
Energy Certificate (provider’s fee) 130.00
TOTAL 410.00
· Leaseholds may require payments to others, which vary according to the property, which we will have to ask you for separately in advance when we know what they are.
· Remember buyers may legitimately wish to do their own official local search so your choice could cause delay.
Please indicate your choice in the heading to the engagement letter.
10. Please indicate your agreement to these terms by signing and returning the accompanying copy with your ID. We reserve the right not to accept instructions, with or without reason. Also with or without reason after the 12-week period in 5 above, we may choose to withdraw from seeking a buyer for you. We may choose not to act for you further or at all on professional grounds at any time.
11. Separate terms will apply to (a) any purchase or (b) any new mortgage or (c) if you instruct us on the legal work but not to seek a buyer on the sale or (d) if we are to act on the legal work but do not find a buyer who proceeds to completion. You may reject these terms, but we cannot then act on such matters unless a variation is agreed.
12. Until we exchange contracts on your behalf, you are not to enter into any legal obligation to sell the Property. Any prospective sale is to be "Subject to Contract". All discussions with applicants must be "Subject to Contract". We recommend you put nothing in writing: if you do write anything, be sure to head it "Subject to Contract".
13. If there is more than one of you we act for you jointly and we will treat the instructions of any one of you as the instructions of you all and if you require independent legal advice, then each of you, as individuals, has the right to consult a separate solicitor and you should tell us if you intend to do this. In some cases a conflict of interest or problems of confidentiality can arise and we may then have to decline to act further for any of you in the transaction.
14. The attached “Client Care Information” applies and forms part of these terms of engagement.
The solicitor to act for you will be : James Manchester
The other partner is : Andrew Durman
To agree the above terms, please sign below.
... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ...
Signature Signature
... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ...
Dated Dated
Where applicable we build HIP pack on the terms specified in Information for Sellers.
The fee for that is additional to the commission rate (which includes the sale conveyancing).
Legal Work on Sale
Legal Work on Sale includes two abortive legal costs included in our terms.
If you exceed two abortive legal sales we will charge our standard charge on the third matter and notify you of this.
ID required, please:
a) Driving licence or passport; and
b) Utilities demand addressed to you at your residence.
q Advice as to procedures and checking your ID;
q Procedural correspondence;
q Obtaining details of your title from the Land Registry and also from your lender if you have a mortgage and proving ownership to your Buyer;
q Drafting contract, agreeing it with your buyer’s solicitor and having it signed;
q Obtaining and providing standard pre-contract information;
q Obtaining redemption figure and paying off mortgage out of sale proceeds (if applicable);
q Agreeing document transferring ownership to your buyer and having it signed;
q Exchanging contracts and completing sale.
q Reporting to you on exchange of contracts;
q Synchronising sale and purchase where required; and
q Preparing full statement of figures by way of a cash account prior to completion and if required accounting to you on completion for any money due to you.
|
Kindly note that whilst we would favourably consider dealing with ordinary problems in the course of the transaction without extra charge, we must reserve the right to charge for these, especially where difficult matters of law or unresolved questions or disputes arise. If this happens we will notify you in advance and the solicitor’s rate of £200 plus £35.00 VAT will be charged. The estimate does not include explaining the Law to you (other than of the most elementary nature), dealing with breaches of contract or litigation, or providing funds due from yourself or others. Please also note the terms include only two free abortive sales. The general principles of charging are contained in the client care information. |
Information for Applicants
1. We act as solicitors for the owner both to find a buyer and on the legal work. We cannot therefore act for you on the legal aspects of a purchase of the property (unless we tell you otherwise).
2. Home Information Packs (HIPS) are now in force for all properties. We are commissioning our own HIP packs where applicable.
3. The property description does not form part of any legal representation or contract, and although measurements have been provided they cannot be guaranteed either by us or by the owner. None of the appliances have been tested nor will be by the owner or us.
4. Although we will notify the owner of any offer you make, we will not be able to regard it as serious until we have written proof of satisfactory financial arrangements and ID. Where there are related sales we will also need a full explanation of the position there before recommending you to the owner.
5. No legal commitment in relation to the sale of the Property arises and everything is entirely “subject to contract” until we exchange contracts on behalf of the owner.
6. The ID we require with any offer is: (a) Driving Licence or Passport; and (b) Utilities demand addressed to you at your residence.
7. After you have instructed your solicitor, we will continue to contact you direct, but not on strictly legal matters.
8. Neither the Seller nor Manchesters Solicitors is responsible for errors or inaccuracies in the Home Information Pack (save for any obligation owed by Manchesters as solicitors for the Seller)
Legal Services
Once you have moved, it is a good time to review your legal affairs. At Manchesters Solicitors we are able to assist with that process. Our Partners are able to advise on:
q Wills
q Probate /Administration of Estates
q Tax Advice
q Trusts
q Powers of Attorney
If you would like further information, please telephone to make an appointment.
Manchesters Solicitors 020 8651 3118
MANCHESTERS SOLICITORS
CLIENT CARE INFORMATION
Under Solicitors Code of Conduct 2007, all solicitors are required to give certain client care information at the outset of the matter.
1. Amount of Costs
Please note that this firm’s fee will be shown as on the covering letter or on the attached sheet, unless your instructions or circumstances vary substantially. The estimate is intended to cover only the general areas shown in the attached Summary of Work.
2. Time Estimate
The average time for a conveyancing transaction from instructions to completion is about two months, or one month for a re-mortgage, but the actual time for a individual matter can vary greatly from this, depending on the particular circumstances and is largely the result of the readiness and willingness of all parties to proceed. As far as the legal work is concerned, this is dealt with by return wherever possible.
Many clients experience serious problems and inconvenience by agreeing too short a period between exchange of contracts and completion. You should please note that failure to complete on time usually entails an interest penalty and substantial damages. Where you are purchasing with a mortgage, we would not under any circumstances, agree to a period of less than 8 working days between exchange of contracts and completion. This is because there are extra tasks to be completed prior to completion in relation to the mortgage and if a lesser time is agreed to, we cannot guarantee that the mortgage advance will be received in time for completion. Even where there is no mortgage involved, we still do not recommend a period of less than 8 working days. In any event, lenders frequently stipulate a minimum period between receipt of a request and actual dispatch of the money. It is not sensible, from the point of view of costs and the organisation of completion, to request the money from the lender prior to exchange of contracts. Thus it is our policy that we do not request any mortgage advance until contracts have been exchanged and the completion date has been fixed.
3. Payment of costs
Unless you have taken advantage of our property selling service, where different terms apply, costs are payable if a transaction fails to proceed. Costs and disbursements are payable shortly before completion. You should check you have sufficient funds to make up any additional money you require, including charges, beyond your mortgage advance and any sale proceeds. We will not do this check for you. Please note that in view of the money laundering regulations it is our policy not to accept cash for sums due. There are circumstances in which we may be entitled to retain your papers for unpaid costs (“a lien”). If you are in breach of your conveyancing contract you may have to pay the other party’s costs. We will not make arrangements for those costs to be paid by anyone else than you.
4. Fabric of Property
If your are purchasing, we do not undertake to check the validity, extent or enforceability of guarantees relating to the fabric of the property or to ensure that the benefit of them is transferred to you, except in the case of NHBC cover. You are advised to have a full survey by a chartered surveyor prior to exchange of contracts.
5. Objectives
The objective is to conclude the transactions referred to in the heading to the covering letter.
6. The Next Step
To obtain the information for the preparation of the draft contract to send to the Buyer’s solicitor.
7. Level of Service
You will be written to whenever our work reveals a point on which we require your instructions or if there is some special aspect or difficulty. You will be written to with the contract to sign when the draft has been approved, (with any proposed amendments), by all parties. In the case of a purchase, you will be provided with a full report of our investigations. You will be written to when contracts are exchanged and notified of the agreed completion date and after that you will be provided with a full cash account showing the cash position for completion. You will be notified finally of completion and when Land Registration has been concluded. We will respond promptly to your requests for information within the limitations set out in 11 below as to numbers of attendances and letters. It is agreed that we shall not be under any obligation to inform you otherwise as to progress unless we arrange with you to do so in advance in which case additional costs may be involved.
8. Our Responsibilities
These are contained on the attached “Summary of Work Covered by the Estimate”. You will be notified promptly of any matter which gives rise to concern following that work and your instructions sought.
9. Your Responsibilities
It will not be possible to provide the level of service you would expect unless you deal fully, frankly and honestly with us at all times and instruct us promptly whenever requested to do so on any specific point. Normally we would expect written instructions, confirming you understand the issues.
10. The Person Dealing with the Matter
This is set out in the covering letter. Some of the more clerical aspects will be delegated to suitable staff but the person dealing remains responsible on a day to day basis and is your first point of contact. If that person is not available please leave your contact details with reception with a request to notify the person dealing. If this is not appropriate, please speak to anyone named in the letterhead.
11. Variations to Estimate
You will be notified in advance if it becomes necessary to vary the estimate, this variation will reflect any special skill required or difficulty involved, the importance to you, the amount or value of any property involved, any need to expedite, work done, solicitors time at the rate of £200 per hour plus £35 VAT and clerk’s time at the rate of £100 per hour plus £17.50 VAT. You will also be notified in advance of any changes in the payments due to others. If anything arises outside the limits of the “Summary of Work”, we will notify you in advance if, as a result, it becomes necessary to vary the estimate. You will note the likely payments to others. If these vary we shall also let you know. Each conveyancing transaction typically involves up to 20 telephone attendances, 20 letters and 30 minutes personal attendances as well as preparing and handling usual documents, searches and formalities. Where a mortgage is involved on a purchase, acting for a lender usually involves an additional 5 letters plus handling necessary documents and formalities. Letters and telephone attendances exceeding this number will in any event be charged at £7 plus £1.23 VAT each. Additional charges for personal attendances will depend on the length and complexity.
The fee has been calculated at the special rate for conveyancing transactions of £75 per hour plus £13.13 VAT. In exceptional circumstances it may be necessary to charge the normal rate of £200 plus £35 VAT but if this happens you will be notified in advance before the work is undertaken. This depends on whether special skill or difficulty is involved. The same approach is adopted in charges for abortive matters (but see also below in this regard).
The estimate does not include dealing with any collateral security. These days, solicitors are rarely involved in such cases but you will be told if this happens.
Kindly note that the estimate does not include costs for specially expediting the matter. All matters are dealt with promptly and by immediate return of post and telephone calls, wherever possible.
Please bear in mind that leasehold properties involve additional work and if you are selling or purchasing a leasehold property the normal additional work only is reflected in the estimated fee.
If you do not cap your abortive costs (not available for re-mortgages) it should be possible, save in certain cases (such as where unregistered titles or leases have been examined or the matter has progressed to an advanced stage when the normal hourly rate of £75 plus £13.30 VAT for conveyancing may be charged) to limit fees on abortive matters to £5 plus £1.22 VAT for each letter, telephone attendance and personal attendance, plus £50 and £8.75 VAT for checking a lease. If your matter fails to proceed after you have been sent a contract to sign with report (usually 2 hours of solicitor’s time a fee of £100 plus VAT will be charged.
12. Complaints
If at any time you feel your needs are not being met, please do not hesitate to contact the person dealing or a person named in the letterhead since it is important that your concerns are dealt with promptly and efficiently. In accordance with the Code of Conduct, we have a complaints procedure, details of which are available upon request.
13. Acting for Others
Mortgage Lenders
We will not act for any other party to your transaction unless you are instructing us jointly with others or you are obtaining a loan from a bank or a building society. In the latter case we will act also for the lender if possible. In doing so we have to observe the requirements of “The Lenders Handbook” issued by the Council of Mortgage Lenders. If anything which affects the security comes to our notice we will (subject to general legal requirements), therefore disclose it to them, whether or not it is adverse to your interest and whether or not it concerns your personal details. It is a fraud to misrepresent the purchase price and we have a duty to inform the lender of the true price being paid for the property.
Joint Clients
Where you are instructing us jointly with another or others, we will treat the instructions of any one of you as the instructions of you all, and each of you instructs the others as his agent for that purpose. If those instructions differ, then no further progress can be made in the matter unless the difference is resolved. We are obliged to disclose all relevant information coming into our possession to all clients, even though it may be adverse to the individual interests of individual clients or concern personal matters. You understand that we act for all of you jointly and not individually. If you require a separate or individual advice on any aspect you should instruct another solicitor for that purpose to look after your individual interest.
14. Means of Contact
We anticipate you will wish to contact us only by post, fax, delivery or telephone. Contact by E-mail can be only by prior arrangement and as a one-off and we urge you to avoid this if possible. Where contact by E-mail has been agreed, please note that our in-boxes are checked only between 11 a.m. and 11.15 a.m. and between 2.0 and 2.15 p.m. and 2.30 p.m., Monday to Friday.
Manchesters
Edition 28.04.08
Back to Property Selling Information | 
