Many of our clients wonder why we have to be so strict about money laundering.

At Graham Smith Property Lawyers, we always endeavour to give our clients the best service and it goes without saying that we must protect them from the fraudulent use of their names and addresses by criminals for the purpose of money laundering.

We have to follow the Money Laundering Regulations 2007, which state that we must have evidence of your identity – photographic ID as proof that you are who you say you are and address ID to confirm your place of residence.

Identity theft is becoming more prevalent and the use of stolen identities enables criminals to open an account with a bank or building society and get ‘dirty’ money into the financial system.

When we ask for proof of your identity it doesn’t mean that we suspect you of money laundering – we are required by law to have evidence to show that you are who you say you are. The procedure that we follow ensures that we comply with the law and also protect you, as our client.

What ID is needed?

To confirm identity we ask clients to visit our office in order for us to obtain certified copies of their ID. We would need one original form of evidence from each of the two groups below:

Proof of identity

• Valid full passport
• Valid UK photo-card driving licence
• Valid HM Forces identity card with the signatory’s photograph
• Residence Permit issued by the Home Office
• Current EEA member state identity card

Proof of address: 

(Each statement or bill must be no more than 3 months old)

• Valid bank card together with an original account statement
• Utility bill (does not include a mobile phone bill)
• Mortgage statement
• Local authority council tax bill
• Council rent book, showing rent paid for the last three months
• Current firearm and shot gen certificate
• Valid UK photo-card driving licence (as long as not used for your identity verification)

For some clients it is often easiest for them to visit our office so that we can confirm that the ID matches the person and take certified copies for the file. It is usually a good opportunity to meet  our team and it also gives you the opportunity to ask any questions that you may have.  Also, we offer free parking and the whole ID check process is usually only 5-10 minutes.   

However, it is not essential for you to visit the office in person, for example if you live a distance away or due to work commitments coming into the office is difficult you can ask us to send you a link to our on-line app and complete it that way. It is an easy process and takes about 5 minutes. 

No, you can pop in at any time and someone in the office will be able to assist you. All it takes is for us is to photocopy your ID documentation and see you in person and answer any queries you may have.

Gazumping is where a seller accepts a higher offer before contracts are exchanged with the buyer. There is little that can be done to prevent a seller from gazumping although a lock out agreement can sometimes prevent this from happening

Your mortgage lender will require a valuation by a surveyor to ensure that the property is a good enough to lend against. But this survey will not look at the structural condition of your home.

You can usually either get the valuation upgraded to a full survey, or you can commission a separate survey. This is worth doing, as it should tell you everything you need to know about the property, and alert you to any potential problems you will face once you move in. Unless you are very experienced with property, it is usually worth getting a full buildings survey done.

Whilst searches are required,if you are purchasing with the aid of a mortgage they are not mandatory if you are a cash purchaser, as it is your own funds that will be at risk and not a mortgage lenders…. so it is your decision. But remember lenders ask for searches for a reason- to protect their investment.

There are four main searches which we undertake for our clients and would always recommend to cash buyers. Below is a brief synopsis and the types of issues they would investigate:

Local Search – this will be undertaken at the relevant Local Authority and will advise on whether the roads serving the property are publicly maintained. It will reveal whether there have been any Planning Permissions/Building Regulations in place in respect of alterations to the property and likewise if you are aware that there have been alterations, it is a way of checking that the relevant permissions are in place.

Drainage Search – this will be undertaken with the Water Authority and will advise on whether the sewers serving the property are maintained at public expense and that all the required sewers serve the property. The search will also advise whether there is a public sewer within the boundary of the property as this could affect future development.

Coal Search – this will be undertaken with the Coal Authority and will advise whether the property is in an area of past mining, whether this is likely to cause or has caused problems. It will also reveal whether there have been any issues with regard to subsidence and whether claims have been made.

Environmental Search – this will be undertaken by a firm of risk management consultants and will look at the level of environmental risk in relation to contaminated land. It will also to a certain extent advise whether the property is within an area at risk from flooding.

If you are a cash buyer you are in a prime position, but don’t compromise this by cutting the searches. They will only set you back a few hundred pounds, but the consequences of not having them could potentially cost you tens of thousands or even more.

The exchange of contracts is the point at which the seller and buyer agree to commit themselves unconditionally to the transaction. This is when the deposit is handed over to your solicitor.

The completion date is the date you hand over the rest of the money and move into your new property and vacate the old one. The agreed completion date is written into the contract on exchange.

No, this is done via the solicitors in the chain on the telephone. We will just need your authority to exchange (by phone or email), on the day of the exchange.

Answer them to the best of your knowledge and most importantly just be honest. If you do not know the answer, you can answer it by saying you do not know. We will assist you as best as we can but obviously some questions only you, as the owner of the property can answer.

Do some initial research before you view properties. There are thousands of different mortgages on the market and you need time to find out which one is best for you. You can obtain a mortgage in principle from most lenders before finding a particular property.

Hand in your notice too early, and you are left with nowhere to live. Hand it in too late, and you will end up paying a mortgage and rent at the same time.

The usual recommendation is to hand in notice on exchange of contracts. Although the parties can agree to work toward a particular completion date, it is only on exchange that the date becomes binding and cannot change, without penalties for the defaulting party.

At the very least, notice should not be handed in until your conveyancer has checked the title and a mortgage offer is received.

When contracts are exchanged, the completion date goes in the contract and is a fixed date for completion. At that time, the removal arrangements can be confirmed to the removal company.

If there is an estate agent involved, the seller's solicitor will telephone to arrange for the keys to be released, once all the purchase monies have been received. Your solicitor will arrange for the transfer of monies as early as possible on the day of completion, but if there is a long chain and monies are awaited, this may delay the time the keys are released.property.

The seller's contract provides for 10% of the purchase price to be paid on exchange of contracts prior to the completion of the purchase a few weeks later, but this deposit amount is more often than not varied by agreement. This depends upon the amount of money being borrowed. If you are buying and selling, the deposit obtained on the sale can usually be used as a deposit on the purchase.

Agent’s fees usually become payable once they have introduced a buyer who exchanges contracts for the purchase of your house. The agent’s commission is usually settled on the completion date from the net proceeds of sale of the house. Your solicitor will usually settle the fee on your behalf.

We will be able to advise you on the implications but there are 2 ways in which a property can be held. You can hold as tenants in common which is where you hold a share of the property, say 50%, and upon the death of that person he or she can pass it to another person. 

The other method by which one can hold a property is beneficial joint tenants. This is where a property is held jointly. Upon the death of one of them the other automatically becomes the owner.

Alternatively a Deed of Trust can be drawn up setting out the terms on which you hold the property. We are able to advise you on this and prepare the Deed for your approval.

If you are buying a property with someone else, you will need to decide how you will share the ownership. There are basically two ways you may own property, either under a Joint Tenancy (as Joint Tenants) or as Tenants in Common. Choosing the right way to hold the property is vital, as it can affect not only what happens when you sell the property, but also what happens if one of you dies or goes into care. Below is an explanation of both ways to own property.

Joint Tenants

If you own the property under a joint tenancy, in the eyes of the law the joint owners are deemed to hold the property in equal shares, and on the death of one of them, his or her share passes automatically to the other by operation of law.

Similarly if there are more than two owners, ownership passes automatically to the remaining owners until ultimately there is only one. This automatic right to survivorship is irrespective of the provisions of any Will which a joint tenant may make during his or her lifetime. The survivor becomes the legal owner of the whole of the property without need for further documentation and any further sale or dealings with the title can be made by him or her without obtaining Probate to the deceased owner’s estate, and the survivor is solely entitled to the proceeds of sale.

On a sale of the property during the joint lives of the joint tenants the net proceeds of sale will be divided equally between them even if they have contributed the original purchase money and expenses such as stamp duty (which can often be significant) in disproportionate shares. This frequently causes distress between couples who are not married and who then separate on bad terms. The Partner who has contributed the larger share often complains it is unfair and seeks a larger proportion of the sale money in line with his or her original investment. The law does not assist such a claim and therefore couples who are buying jointly but not paying equally need to be particularly mindful of this and should give serious consideration to buying as Tenants in Common or having a separate Deed of Trust setting out what should happen in such an event.

The other situation where Joint Tenancy may be inappropriate is where divorcees or previously married people with existing families come together to purchase a property jointly. Automatic succession may not be appropriate as the claims of their respective children and existing families have to be considered.

Tenants in Common

On the death of a tenant in common, his or her share does not pass automatically to the survivor but becomes part of his or her estate. It is then dealt with in accordance with the terms of the deceased’s Will, or, if the deceased did not make one, under the rules of intestacy.

Tenants in common can hold the property in equal or unequal shares. For example the shares can be 50-50 or in whatever specific percentages they declare, e.g. 70 – 30 , 60 – 40 etc.

Moreover the shares can be in accordance with each party’s contribution towards the purchase money. If the transaction is to be on this basis it is advisable and necessary for a separate document, (a Declaration of Trust), to be prepared specifying the division of the ownership. This deed can cover a wide-reaching number of points, for example the contributions made towards the purchase price, the payment of mortgage payments and upkeep and future maintenance of the property and the eventual division of future sale proceeds. A Trust Deed can provide that on a sale, each party will be repaid their original contribution and thereafter the proceeds divided equally or in such proportions as they declare.

Ending Joint Ownership

As joint property owners, you all have equal rights to live in the property - so if one person wants to sell, everyone else needs to agree. This can cause problems if, for example, you're splitting up with a partner but one of you wants to keep living in the property or one owner gets a new job and wants to relocate.

If you want to sell and the other owners don't, you may have to seek a court order. Going to court will be stressful and expensive so it's better to avoid doing this if you can.

You may want to draw up a legal agreement before moving in together that defines under what circumstances the property will be sold, how much notice is required and what proportion of the sale price each person is entitled to. All parties should take independent legal advice to make sure the agreement is written correctly and fairly represents their interests.

If you want to change from tenants in common to joint tenants - or vice versa - you can register this change with HM Land Registry free of charge with the agreement of your co-owners. 

Both types of joint ownership have pros and cons, depending on your personal circumstances and your relationship with your fellow buyers. If required we will be able to guide you in making your decision on what type of ownership is best for you.

There are no “Deeds” as such any more, as the legal documents of title are held electronically at the Land Registry.

However, there are a number of useful supporting documents which you should keep safe as they are required when the property is sold again.

You won’t always need a conveyancing solicitor if you remortgage If you’re just getting an advance (i.e. borrowing more on your existing mortgage deal with your existing lender) then there are no legal charges involved in the transaction, only charges associated with increasing the loan and repayments.

If you remortgage with your current lender, by simply moving to a new rate or deal, it’s considered a “product transfer” and requires no additional legal work.

Otherwise, yes, a remortgage will require you to have a solicitor or conveyancer to help with the legal side of things.

The good news is most lenders will include a free legal package in their remortgage deals, which mean their chosen solicitor will cover the legal requirements. But check that this is actually free! If your chosen lender’s legal package isn’t free, ask if you’re able to shop around.

There are a couple of situations where you’ll need to appoint your own solicitor:

Adding someone to the mortgage – if you’re looking to add a friend or partner when you remortgage, you’ll need to get a solicitor as you are changing the ownership of the property. This is also known as a ‘transfer of equity’. You will need solicitors to amend the deeds for you and help draw up paperwork specifying how you will own the property. You can get quote from conveyancing solicitors that will do this for you here.

Removing someone from the mortgage – as in the above point this means that the ownership of the property is changing so a solicitor will be needed to amend the deeds.