I have just put up my house for sale and I am currently having people come to the property to view it, however I have never sold a property before and I would like to know how I can sell my house and what are the legal formalities required for me to sell my house to another person in the UK?
The Answer from Solicitors Online
A formality is a specified action required by law to achieve a purpose, in this case the sale or transfer of a property. The following laws and legal formalities apply.
Sales of Goods Act 1979 and Selling Your House
The Sales of Good Act 1979 states that a property will pass onto the buyer when the contract says so. If the contract say’s nothing, the default rule is that the property will pass onto the buyer on the date the contract is made.
Law of Property Act 1925 and Law of Property (Miscellaneous Provisions) Act 1989
The Law of Property Act 1925 and Law of Property (Miscellaneous Provisions) Act 1989 state that for a property to be sold it must be done so in writing and the agreement must be signed
A Property in a Trust
For a property to be placed under a trust, there must be a clear intention to do so. A will stating that a property is placed under a trust for a beneficiary would suffice.
There are certain cases in which the sale of a property will be void, even if the correct legal formalities have been followed. An example of this is fraud, to prevent fraudsters profiting from their fraud.
The conditions are
(a) The mortgage must have been made by deed
(b) The mortgage debt must be due and the legal redemption date must have passed.
Once both of these conditions have both been met, then one of the three conditions below must have also be met for the power of sale to be exercised by the lender.
(a) Notice has been served on the borrower requiring payment, and three months have elapsed without the borrower repaying the whole debt; or
(b) Interest is at least two months in arrears; or
(c) There has been a breach of a term of the mortgage, other than one relating to repayment of capital and interest.
A lender can have the power to take possession of a property if the right reasons are present.
A common reason for taking possession is in order to sell the property with vacant possession, once the borrower has defaulted on their mortgage. However a lender must obtain a court order to take possession of the property and evict the borrower from the property.
Power to appoint a receiver
The power to appoint a receiver arises when a mortgaged land or property is subject to a lease, and the lender wishes to get the rent payable under the lease.
A receiver has the role of collecting the rent payments that otherwise would have gone to the borrower, such as payments for rent by a tenant in the property.
If you need legal advice on the sale of a property or the purchase of a property, you speak to our Solicitors online right now.