Buying or Selling a Property? Know your rights and responsibilities

Buying and selling a property can be a stressful and tedious process but both buyers and sellers have their rights and responsibilities to encourage a smooth and fair transaction. It is important to know these in advance, so the process is a little easier for all parties involved.

Both sellers and buyers have the right to keep their personal details and information confidential during the buying and selling process. Both parties also have the right to obtain the relevant legal representation to advise during the transaction. Lastly, both parties have the right to fair, reasonable and respectful treatment from all parties involved in the transaction, including the estate agent, buyer or seller on the other side, lender, legal representative etc.

Rights of a property buyer:

As a buyer, you have the right to accurate and clear information on the property you are purchasing. This includes the physical condition, the legalities i.e. Covenants, Easements, Rights of Way and also any issues or potential issues.

You have the right to inspect the property prior to exchange and also at any point during the transaction, with reasonable notice and at a mutually suitable time with the seller and/or estate agent if they have one. This can be for the purpose of inspecting the physical condition of the property or even for a qualified Surveyor to attend the property to carry out a professional inspection of the property in order to write up a Survey Report.

You have the right to negotiate with the seller on matters such as the purchase price, any specific terms of the sale, fittings and contents or even works to be carried out prior to exchange or completion. These negotiations can be done through the Estate Agent, directly with your seller or your legal representative. It is advisable to communicate any agreements to your legal representative so this can also be flagged to your seller’s legal representative to avoid any issues on completion due to the Seller not holding up their end of the promises made.

You have a right to a good and marketable title to the property you are purchasing, and your legal representative would be able to advise you of this. This essentially the owner/proprietor of the property or land being sold, or they have a right to sell the property e.g. under a Power of Attorney or Executor of an Estate and there is no factor or issues on the title that would prevent the property being registered into your name on completion or prevent or delay the registration of a mortgage or subsequent re-sale.

You have the right to withdraw from the property purchase at any time prior to the exchange of Contracts and the nothing is binding until the point of exchange. After the exchange of contracts, if you wish to withdraw or you fail to complete for any reason, the seller has the right to rescind the contract, keep the 10% deposit and put the property back on the market. There may also be other penalties to pay including a notice fee, search fees and legal fees.

Responsibilities of a property buyer:

As a buyer, you are responsible for doing the relevant research on the property you are buying and the surrounding area. This may include accessing the local authority website to look at zoning restrictions, local amenities and also commissioning a property survey using a professional surveyor.

You are also responsible for ensuring you have sufficient funds to purchase the property. This includes contacting the relevant parties i.e. a broker to arrange a mortgage or loan, budgeting the completion costs including the legal bill, Stamp Duty etc. and ensuring you have sufficient funds for deposit which is usually 10% of the purchase price.

It is your responsibility to ensure you fully understand the terms of the contract by reviewing this carefully and asking your legal representative to explain any terms you are unfamiliar with. You must also make it a point to understand the terms of any warranties and indemnities.

You are responsible for securing the relevant buildings insurance, if required and depending on whether there is a landlord or management company who arranges this. If you have a lender, you must ensure any requirements they have in relation to this i.e. reinstatement cost, is adhered to.

Rights of a property seller

As a seller, you have the right to receive reasonable offers for your property. You have the freedom to consider multiple offers and negotiate terms which may be more favourable to you. It is important to read the terms of the estate agent you are intending on listing with as they may impose penalties and restrictions on you listing with other agents once you have listed with them. This is also relevant if you wish to cancel your listing agreement with your estate agent. Although you have the right to do so if you are not satisfied with their service, there may be some contractual obligations and fees involved.

You ultimately have the right to choose your buyer especially if you have received multiple offers. You can choose a buyer based on your current circumstances and theirs i.e. if they have a property to sell, funding and whether they are obtaining a mortgage or loan, and also timescales. You have the right to accept and reject offers and are not obligated to accept any offers that do not meet any of your requirements.

Similarly to a buyer, you have the right to withdraw from the sale of your property at any moment prior to exchange of contracts. You may still have to bear the cost of any legal fees payable, or any fees paid to third parties but you can simply choose to ‘walk away’ from the sale. If your buyer fails to complete on the sale of your property for any reason, you have the right to rescind the contract, keep the 10% deposit and put the property back on the market if that is what you wish to do.

Responsibilities of a property seller

As a seller, you are responsible for providing your buyer, estate agent and legal representative with full and honest information on your property. This includes its condition, any known issues, works and history. Although not in your favour, this includes the disclosure of any defects the property may have.

You are responsible for liaising with the relevant party, usually the Estate Agent, to reach an agreement with regards to the sale price and terms of the sale. This includes getting an appraisal, preparing the property for viewings and advert photos, undertaking relevant repairs if required, relevant certificates i.e. EPC and deciding on the fittings and contents which will be included in the sale and those which will be offered at a price.

You are responsible for ensuring you sign and complete any necessary documentation required. This includes the Contract, Transfer Deed, any declarations i.e. statement of truth and any other documents required for your specific property.

You should co-operate with your buyer and their legal representative, through your solicitor, throughout the sale process. This does not mean that you must oblige to any and every request the buyer makes even if you disagree or are unable to fulfil them. This may just involve providing access to the property upon reasonable notice for the purpose of property inspections and any other necessary evaluations for property works or repairs.

If you fail to complete on the sale of your property, at no fault of your buyer, after the notice period has passed, the buyer can rescind the contract if it has not already been withdrawn by you and any deposit paid to you must be returned. You may also be liable for any penalties and also the buyer’s costs such a legal fees, survey costs, removals and any other damages.

How Pinney Talfourd can help

Understanding your rights and responsibilities as a buyer or seller is essential for a smooth and fair property transaction. Our dedicated residential property team are here to assist with any questions you may have about the buying and selling process.