Delays in Property Closings: Strategies to Accelerate Your Homebuying or Selling Process
In the world of real estate, the journey from offer to exchange can be a complex and lengthy one, especially in England and Wales. Here's a breakdown of the factors that contribute to this administrative intensive process.
Firstly, providing as much information as possible before a property goes to market or before an offer is made can significantly ease the transaction. This includes having a mortgage decision in principle, ensuring a buyer can afford the property, and ensuring that the property listing includes material information that could impact a buyer's decision.
However, delays can still occur. In recent years, the percentage of sales progressing from offer to exchange within 12 weeks has dropped dramatically, from 78% in March 2016 to just 29% in March 2024. This can be attributed to a variety of factors, including solicitors being under-resourced, with 59% of estate agents suggesting that solicitor constraints were the key reason for extended exchange times.
Moreover, some agents still fail to disclose material information, which can delay a transaction. This is a practice that should be avoided, as being honest and upfront about any issues when instructing an estate agent or conveyancer can lead to a successful sale.
Another issue lies with mortgage lenders. Until 2002, mortgage lenders stored property deed packs, but now this information often gets lost, causing delays. This underscores the importance of shopping around, getting quotes, and reading reviews carefully when choosing an estate agent and conveyancer.
The sales process is further complicated by the need for thorough property searches, conveyancing procedures, and coordination between multiple parties such as buyers, sellers, solicitors, and lenders. These steps ensure all legal and financial aspects are correctly handled before the transaction completes, often causing delays.
Extra work for solicitors includes handling leasehold and building safety issues, more complex property titles, and ensuring the correct type of stamp duty is paid. These tasks require a high level of due diligence, and going cheap with an agent or conveyancer may lead to issues.
Digital packs and digital logbooks are needed to bring all necessary information back together to cut down on the time conveyancers spend trying to find this. This is a step towards modernizing the process and reducing delays.
Conveyancers are often criticized for relying on traditional paperwork and not using technology enough when putting together legal documents for a property sale or purchase. This is another area where improvements can be made to streamline the process.
The Property Information Questionnaire is a form that sellers complete before a listing goes live to ensure relevant information is shared upfront. Instructing a conveyancer earlier in the process can help highlight any issues with a property, such as flood risks or subsidence, and address them proactively.
In conclusion, the real estate sales process in England and Wales is a complex one, but with the right information, preparation, and the right professionals, it can be navigated smoothly. By being transparent, proactive, and leveraging technology, delays can be minimized, and a successful sale can be achieved.
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