Real Estate Law Title

Home Information Packs (HIPs) have been a feature of the residential property market for over two years now but few people involved in the property sector would have raised much of a cheer for that particular anniversary.

Since their inception HIPs have not fared particularly well. It appears that there is no incentive for Estate Agents to put Packs in front of potential buyers and buyers themselves in the main are not asking for them. A lot of this is may be to do with negative media coverage, consumers are therefore not seeing them and so cannot make better informed decisions.

It is a similar story as regards the Energy Performance Certificate again the problem is that if consumers are not seeing the contents of the Pack then they are highly unlikely to action the Certificate’s recommendations.

The reaction of most of us engaged in conveyancing has largely been one of indifference if not hostility. The Home Condition Report seemed a good idea but when it was dropped, the remaining HIP was not really going to progress the transaction at all or give purchasers any real information. There are of course some Conveyancing Searches with the Pack but even now these are often out of date by the time Solicitors are instructed.

It remains to be seen whether HIPs have a long term future in the property market.

Last year the Office of Fair Trading launched a comprehensive study into home buying and selling. The aim is to establish whether consumers receive a good service and that the market is competitive innovative and well functioning. It remains to be seen whether the study will have any significant impact on HIPs.

A greater shadow over the Packs is the Conservatives stance. The Shadow Housing Minister has consistently said the party will scrap HIPs if they come to power.

We are probably all aware that over recent months there has been increased activity in the housing market but if HIPs are considered to have stood in the way of this revival one can expect many more calls for their withdrawal.

An experienced Solicitor will ensure that all clients make the most of the information available when purchasing (or selling) their home, therefore you benefit from making informed decisions.

Property management has proved to be a lucrative and interesting option over the years making more and more people opt for this business. Many people have spare property or home which they prefer to lease out sell in order to make profit from the property. In fact it is a wise decision to make use of the property as keeping it empty can lead to many problems. But becoming a landlord is no easy job. In order to prosper in this business it is imperative to follow certain factors one of which is legislation overview. Legislation overview is a very important legal affair which should be dealt by the landlords to avoid falling in trouble in the future.

Why is Legislation overview important?

Many landlords fail to take care of the factors associated with the land letting business and thus their inability leads to improper property management. Legislation overview is equally important for both landlords and tenants as legal affairs if neglected can land people in great trouble.

Often landlords are seen to evade the legal matters because they fail to understand the intricacies of legal matters. In such a situation, it would be a wise decision to handover the responsibilities to letting management consultants in order to take the best care of legislative overview and to avoid any undesirable condition. These companies are experienced in legal affairs hence can be helpful to both landlords and tenants.

Know about Legislative overview

If you have decided to take the aid of property management companies to help you in legislative overview, be sure of the fact that you have chosen the right company.

Legislative overview and other legal matters should be dealt with care so don’t choose a company without prior research. Internet can be of great help in this regard for it. Here you will be able to find out the names and other details of the companies involved in this type of matter. It would be easier for you to locate firms at your own locality too.

When you are with these companies, you can be rest assured of having the best legal support, as these companies usually hire experts who are capable enough to provide you personalized and customized service based your specific condition.

To avail the facility of the legal aid of the letting agents you need to pay a fee stated by them.

Why Do You Need of the Help of the Letting agents?

The laws concerning property and house acts keep changing from time to time. It is not possible for every person to keep regular track of these changing laws, hence the need of the letting agents.

The letting agents help you to avoid botheration of dealing with legal matters as they are experienced enough to deal with these stuffs. The letting agents can help the tenants and the landlords specially, the latter in more than one way. This is the reason why more and more landlords are resorting to the help of the letting agents.

This article exposes ten ways in which the conveyancing lawyer, acting on behalf of the seller typically slows the selling process down:

When selling, many conveyancing solicitors have the misguided belief that all they do is throw out the papers to the buyer’s conveyancer.

This mistaken belief was spread by the axiom of Caveat Emptor, which obliges the property investor rather than the seller to uncover defects or legal problems with a property.

As if the Caveat Emptor was not enough the courts, through cases such as William Sindall Plc -v- Cambridgeshire County Council 1993 have encouraged convayancing lawyers not to look at the paperwork for fear of being legally exposed to an argument that in reviewing or commenting on the papers that may have some degree of responsibility to the buyer.

We would also argue the commoditisation of conveyancing and the driving down of conveyancing fees means that mostconveyancing firms do not give themselves the luxury of being proactive and reducing the risk of the buyer’s conveyancers raising enquiries.

The end result is that the majority of conveyancers do not read through them first with the following results:

1. They fail to ensure the Buyer’s conveyancing lawyers receive the HIP. Lamentably only a few conveyancing lawyers provide HIPs and therefore rely on the agent to provide the HIP to the buyer’s conveyancing lawyers.

2. The Home Information Pack, not being produced by those with expansive knowledge of the conveyancing process, has unspotted errors in because the Seller did not have it prepared by a conveyancing solicitor.

3. Many sellers rely on the registered title in the Home Information Pack which may be months old, this is not acceptable to the Buyer’s conveyancing lawyers (because it is not up to date) and so days are lost in getting fresh requests.

4. Even if an up to date title is produced, many conveyancers forget to apply for and send the independent
documents referred to in the title. Perhaps as many as one third of titles refer to additional documents which the Buyer’s solicitors always ask to see. The Land Registry can take up to 7 working days to send these documents. They are not a required part of a HIP.

5. Planning permissions for home improvements certainly in the last 4 years, and ideally in the last 20, if not a complete set, are not produced, so the Buyer’s solicitor has to chase. According to Fridays Property Lawyers data, there is an average of 1.5 planning documents applicable for every property.

6. New Home Warranty papers fail to be sent. They are not required as part of the HIP and are often in the possesion of the Seller. Too often these documents are mislaid and precious time is wasted getting duplicates. No mortgage broker in the United Kingdom will approve a mortgage on a newly built house without such warranties being to hand.

7. All English lenders require conveyancing solicitors to be satisfied with management information for a leasehold property. All too often the seller’s property solicitor will not send this information out on a leasehold sale, until requested, losing weeks potentially

8. Out of date Protocol Forms are too often sent by the sellers conveyancer, meaning even more questions must be asked to get them as up to date as the latest copy.

9. Failure to read the Sellers Property Information Form or Property Information Questionnaire which refers to guarantees, or construction worksor UPVC or electrical works - so the conveyancing solicitor for the Buyer has to then chase for this extra information.

10. Having too many contractual ’special conditions’ some of which can be unusual, like seeking a refund of searches, or not warranting the accuracy of plans or having clause after clause of what penalties the Buyer would be liable to pay if they fail to complete.

If a seller’s conveyancing solicitor dealt with all the afore mentioned points it would assuredly speed up transactions but it would not make the documents “exchange ready “. So, are exchange-ready - Home Information Packs the answer? Regretably we are yet to see such a document. Our fear is that they are as uncommon as pigs wool. One particular company indicates that their Home Information Pack will include a certificate saying that the Home Information Pack is “Exchange Ready”. Given that the ERH does not deal with all of the above points at best it is an insult to the publics intelligence but at worst it may merit serious investigation by Trading Standards for being erroneous.

A Residential Lease agreement is a legal and binding contract, which is signed by the landlord or the owner of a property, and the tenant before he takes the property on rent. The agreement should follow certain guidelines and include certain key points as mentioned below:

1. Define the Lease Property: The property to be addressed in the Rental lease agreement needs to be aptly described with its complete address, unit and identification that make it unique from all others.

2. Define the time frame of the lease: The agreement needs to specify the beginning date and ending date for the lease, rather than just the duration e.g. “nine months” is not enough. This also includes the conditions for the notice period, i.e. the time needed to vacate the property that can be one month or two months.

3. Define the renewal terms: If the landlord has provided his tenant, an ability to get the lease renewed, it needs to be clearly stated in the lease agreement. This section may describe the change in rent after the renewal process; also the notice period as how much time prior to the adjournment of his original lease period, the tenant has to issue the request of renewal, and other clauses as appropriate.

4. Define the terms ruling security deposits and rent payment: The amount, a tenant pays to the landlord or owner for the security deposit, depends on the area and the laws governing it. This amount needs to be clearly specified in the lease agreement. Furthermore, the time and duration within which the security deposit needs to be paid back to the tenant has to be stated. This section also includes the description of how charges would be taken care off, for maintenance and damage of the Lease Property. Regarding the payment of the rent, the amount, mode of payment, the monthly date of payment and course of action in getting delayed, all need to be mentioned clearly in the agreement.

5. Define the terms for the occupancy and usage of the Lease Property: The purpose of the property usage needs to be clearly mentioned in the agreement i.e. whether the property would be used for a residential purpose or for office or retail, etc. This section should comprise of all the clauses regarding the limitations of the property usage and occupancy e.g. a lease agreement stating the property to be used for “Travel and tourism” office should not be used as an office of “Real estates” etc.

6. Define the owner’s conditions for property’s inspection: Once the lease is signed, the property would be used by the tenant and hence his privacy needs to be considered. In case the lease agreement is signed for a longer duration, the owner’s choice of coming and checking the area needs to be clearly taken care off well in advance. The time duration of each inspection, prior notice process, authorization of any other person to enter the Lease Property needs to be stated in this section of the agreement.

7. Define any improvements to be made to the leased property: Once the lease is signed, the property wouldn’t undergo any modifications by the landlord, unless specifically stated in the agreement. If the property is being given for office purpose, it may undergo certain improvements and the terms, conditions, cost of modification, etc. need to be mentioned in the lease document beforehand.

8. Define the responsibility of maintenance of the Leased Property: The terms regarding the maintenance of the leased property need to be defined in the lease agreement as it varies depending on the kind of property’s usage. E.g. in case the property is used for residential purposes, the landlord or owner is responsible for the maintenance within the lease period. On the other hand, if the property is used for an official or commercial purpose, then the responsibility to maintain it may fall in the lap of tenants. In either case, this section should be properly stated and understood by both the parties, before they sign the agreement.

9. Define the clauses for the transfer of the Leased Property: If a tenant wants to transfer his lease to some other party, then the terms and conditions governing such kind of situation needs to be clearly taken care off in the lease agreement.

10. Define the conditions for acceleration or waiver of rents: Depending on the laws and conditions, an acceleration or waiver of the rental amount for certain period of time or in case of any violation of previously mentioned terms can also be included in the lease agreement.

Since a rental agreement is a legal document, most of the real estate investors, landlords and owners seek an attorney to draft their lease agreement. There are also standard templates of the agreement available, which can be modified and entered with details to be used as a lease agreement. For this agreement to be binding and authentic, it is required that, both the parties signing it should be of legal age. If one of the parties is a minor, then the signature of their parent or legal guardian can work as well.

In all the cases, a residential lease agreement is quite important in protecting the rights of both landlord/owner and tenants.