1) I am doing my own conveyancing.
2) As part of the agreement of sale, I will receive the asking price of £110,000 (received on completion) but as part of the offer I will be allowed to stay in the property rent free until 1st March (effectively I am saving on the interest). If I complete on 1st March I will lose out on this free rent which was why I accepted the offer.
3) In the early stages (just received the memorandum of sale) so not heard from the buyer yet as to whether a mortgage lender has been arranged.
4) The loss will be the free rent as part of the agreement.
5) Sale price is £110,000 provided completion happens before the end of the year. If it is delayed the price will be increased and prorated at a nominal rental fee of £750 per month to ensure I benefit from the free rental period.
So are you using the standard conditions and simply wanting to modify them?
I have to ask the question as to whether you are actually competent to do your own conveyancing (forgive me for being blunt) because this type of thing is standard conveyancing procedure.
Is the property that you have mortgage free?
That is right - I simply wish to modify the standard conditions of sale to include this clause. In the conveyancing I have done and seen in the past I have used the standard special condition: Vacant possesion will be given on completion.
Of course this doesn't apply in my case so I am airing on the side of caution hence why I am seeking advice and checking how this clause can be written first and I appreciate the assistance (hence why I am on the forum and will gladly accept when you reply).
It is not mortgage free and I know where you are heading with this: I will still need to instruct a solictor to act in its interests. I am just doing the conveyancing side
Thank you. I was just checking that you knew what you were doingbecause many people seem to think that they can do it themselves and aresurprised when they get a bill from the solicitor acting on behalf of thelender which is actually the same amount of money that they would have paid tohave the solicitor do the job in the first place!
There is an issue with the buyer if the buyer is buying with theaid of a mortgage because the buyer will have to disclose that you are stayingin occupation after completion and that it is not vacant possession the lendermay refuse to lend on that basis or may insist on a buy to let mortgage. Ifthis proceeds regardless, and the buyer it ignores that, the buyer is in breachof mortgage conditions. It is obviously not of concern to you but you do needto be aware.
The reason I ask about the £750 is that for it to be enforceableit must be a genuine measure of loss that you would incur for late completion.
On a sale price of £110,000 at 5% interest that is of just over450 quid per month so it may be that your £750 is overstated and notenforceable. I mention that the completeness in case it ever comes down to anargument. There is no problem putting it in the contract would if the buyerdoesn't pay, the chances are you would not be able to enforce it. There is theother argument of course which is that you are staying in the property and soyou haven't lost anything. At least you know the background.
The buyer will pay special damages at the rate of x per month inrespect of any delayed completion and a pro rata amount in respect of any partof any month.
The parties agree that this is a genuine measure of damages thatthe seller is entitled to in respect of breach
The lender will insist on an assured short hold tenancy whichmust be for at least six months although you can end it earlier by mutualagreement.
Completion should be stated as first of March 2014 or early bymutual agreement
you need to consider what happens with insurance between exchangeand completion and completion and vacation and who pays for it and arranges it.
You need to covenant to keep the property in good repair duringyour period of occupation.
You need to consider who is responsible for structural repairs.
You are responsible for all the utilities during your period ofoccupation
you need to actually grant yourself the right to remain inoccupation and that should actually be the subject of a hold tenancy agreementon its own
does that answer?
We are obviously not allowed to draft the document for you butsimply give you points
Thank you that is a very detailed answer and I am very impressed with the service received it has helped put my mind at rest as this is much more complicated than normal (especially with a separate tenancy agreement). You are also right about costs, in this case given the complexity, I will have to reconsider whether doing my own conveyancing is the right choice as this is unusual.
Thanks once again, very helpful.
I am glad to help.
If ever you want me in future, you can of course request me butif you also put my name at the top of the thread, the other experts will tellme that you are waiting.
I just wanted to confirm you received the payment - I tried to rate the service but it did not go through. Please let me know how I can pay if it has not come through.
Try rating it again and if it doesn't work, I will send it toadmin and they will resolve.
Tried again but still hasn't gone through May have to get admin to resolve unfortunately (they can send me an email if they need me to authorise payment). I'll also give them a call.
Don't worry. It happens from time to time and your comments in this thread are enough for admin to credit me when they read them. Thank you for your time
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).