Having an offer accepted on a house – what happens next?

« First Time Buyers Guide
 

First and foremost, congratulations are in order! The offer for your first home has been accepted. You’ve already jumped through numerous hoops to get to this stage in the moving process, so what happens next?

Properties are listed by estate agents under two headings – ‘Under Offer’ and ‘Sold Subject to Contract’. A house ‘under offer’ means the seller has received an offer for the property but has not yet made a decision on whether to accept. Meanwhile a house ‘sold subject to contract’ means a seller has accepted a provisional offer subject to the completion of home surveys and necessary paperwork.

You may think at this point you are legally committed to the sale, correct? Wrong! If for any reason you choose not to complete your purchase you have the ability to pull out without facing a financial penalty. The seller is not committed to a sale just because they have accepted an offer. In fact it’s not unusual for buyers to be ‘gazumped’ – where a seller accepts a second offer and moves to exchange contracts with another buyer.

This law only applies to property in England and Wales however. In Scotland once your offer has been accepted by the seller the deal is instantly legally binding. This is usually because home surveys and additional background checks have been initiated by the Home Report which must be available to view when the property goes on the market.

Whilst your offer is subject to contract your solicitor will obtain ‘searches’ to ensure there are, for instance, no plans to build a motorway through the property, no disputes over the land (including neighbourly disputes!), or to check that it is not built on a potentially dangerous site. The solicitor will purchase the appropriate searches for your area.

You should also consider employing a chartered surveyor to carry out a home survey which will highlight any structural issues with the house that could eventually save you thousands of pounds in costly repair bills.

A home survey can comprise of a HomeBuyer Report or a Building Survey. The HomeBuyer Report contains a valuation which is useful to confirm the price you are paying. The latter goes into further detail than the HomeBuyer Report, but both are equally acceptable in terms of evaluating a property’s construction and condition. Home Condition Reports are also available from RICS qualified inspectors. These tend to be a little cheaper, but without a valuation and less detail.

With so many Chartered Surveyors to choose from to conduct your home survey it can be confusing to choose one that’s reliable and has an adequate level of knowledge of the local area. At reallymoving.com we can help you make a decision within a matter of seconds. Our instant survey quotes for both HomeBuyer Reports and Buildings Surveys are from local RICS regulated surveyors in your region. Our Chartered Surveyors also have feedback left from their customers, so you can see how they compare.

Once your Chartered Surveyor and property lawyer have carried out all necessary checks on the property and you are happy to proceed, your conveyancer will ask you to read the terms of your contract. The next step is to exchange contracts with the seller.

Read our guide to exchanging house contracts as you head towards your completion date.
 

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