Must-Read Buyer Guide: 99home

Buying A Home Is One Of The Most Significant Financial Commitments You Will Ever Make. To Help You Navigate The Process And Avoid Potential Pitfalls, We Have Put Together This Comprehensive Guide Based On Uk Law. Whether You Are A First-Time Buyer Or Seasoned Investor, Following These Guidelines Will Ensure A Smoother, Safer Transaction.

Conducting Property Viewings

Property Viewings Are Your Opportunity To Inspect The Property In Person And Assess Whether It Meets Your Needs And Expectations. Here’s How To Make The Most Of Your Viewings:

1. Preparation Before The Viewing

• Research The Area: Familiarise Yourself With The Local Area Before The Viewing. This Will Help You Gauge Whether The Location Is Suitable For Your Lifestyle.
• List Your Priorities: Have A Clear Idea Of What You Are Looking For In A Property—Whether It’s The Number Of Bedrooms, Garden Size, Or Proximity To Work. This Will Help You Focus On What’s Important During The Viewing.

2. What To Look For During The Viewing

• Exterior Inspection: Check The Condition Of The Roof, Walls, And Windows. Look For Signs Of Wear And Tear, Such As Cracked Walls, Missing Roof Tiles, Or Rotting Window Frames.
• Interior Condition: Inspect Each Room Carefully. Look For Signs Of Dampness, Mold, Or Structural Issues, Such As Cracks In The Walls Or Ceilings. Don’t Forget To Check The Condition Of The Flooring, Fixtures, And Fittings.
• Natural Light: Assess The Amount Of Natural Light Each Room Receives, As This Can Significantly Affect Your Living Experience.
• Storage Space: Make Sure There’s Adequate Storage Space For Your Needs, Including Built-In Cupboards, Attic Space, Or A Garage.
• Noise Levels: Pay Attention To Any Noise From Nearby Roads, Airports, Or Neighbours, Which Could Impact Your Comfort.

3. Questions To Ask The Estate Agent Or Seller 

• Reason for Selling: Understanding why the property is on the market can offer insights into any potential issues or the seller’s level of urgency.
• How Long the Property Has Been on the Market: A property that has been listed for a long time might have underlying problems that have deterred other buyers.
• Included Fixtures and Fittings: Clarify which items, such as kitchen appliances, light fittings, or garden sheds, are included in the sale.
• Property's Structural History: Inquire about any major renovations, repairs, or known issues like damp or subsidence that could lead to additional maintenance costs.
• Ownership: Verify whether the property is freehold or leasehold and check for genuine ownership by reviewing legal documents or consulting a solicitor to avoid potential scams, such as fraudulent ownership claims. Always ensure the seller has the legal right to sell the property.

Before submitting an offer on the property, consider below points.

• Research The Property: Before Making An Offer, Thoroughly Research The Property. Consider Its Market Value, Condition, And The Prices Of Similar Properties In The Area.

 

• Get Pre-Approved For A Mortgage: If You’re Financing The Purchase, Getting Pre-Approved For A Mortgage Will Show The Seller That You’re A Serious And Qualified Buyer.

 

• Determine Your Offer Price: Decide On A Reasonable Offer Based On Your Research. Consider How Much You’re Willing To Pay And Any Conditions Or Contingencies That Might Affect The Offer.

 

• Submit The Offer In Writing: Your Offer Should Be Submitted In Writing, Usually Through Your Real Estate Agent. It Should Clearly Outline The Terms, Including The Offer Price, Any Conditions, And Proposed Timelines.

 

• Material Information: Always check the material information related to the property, such as lease terms, flood risks, and other essential details that could influence your decision. Ensuring full transparency on these aspects can help avoid unexpected issues down the line. For further details, refer to the Buyer and Tenant Guide to understand the critical elements to look out for when making a property purchase or rental decision.

 

Scam Alert 

 

• Fake Offers: Scammers Might Pose As Legitimate Sellers, Creating Fake Offers To Manipulate The Market Or Pressure You Into Increasing Your Bid.

 

• Misrepresentation Of Competing Bids: Fraudsters May Falsely Claim That There Are Higher Competing Bids On The Property To Pressure You Into Raising Your Offer Unnecessarily.

 

• Fraudulent Communication:Criminals May Contact You Pretending To Be The Seller Or Their Agent, Providing False Information To Steer You Into Making A Hasty Or Ill-Advised Offer.

 

Protecting Yourself Against Fraud When Buying A Home

Buying A Home Involves Significant Financial Transactions, Which Can Unfortunately Attract The Attention Of Criminals. While The Risk Of Fraud Is Generally Low, It's Crucial To Remain Vigilant To Avoid Common Scams. Here’s An Overview Of The Various Types Of Fraud You Should Be Aware Of And How To Protect Yourself:

1. Misdirection Fraud

Misdirection Fraud Occurs When Criminals Impersonate Your Legal Representative And Contact You Via Email Or Phone, Claiming There’s Been A Change In Their Bank Account Details. They May Ask You To Transfer Funds To A Fraudulent Account, Preying On The Trust Between You And Your Solicitor Or Conveyancer.

How To Protect Yourself

• Legal Representatives Rarely Change Bank Accounts: It Is Extremely Uncommon For A Solicitor Or Conveyancer To Change Their Bank Account Details. If You Receive Such A Notification, Treat It With Suspicion.
• Verify Before Transferring Money: Always Confirm The Details By Calling Your Legal Representative Using A Known, Trusted Number (Not The One Provided In The Suspicious Communication) Before Transferring Any Funds.

2. Identity Theft

Identity Theft Involves Criminals Stealing Your Personal Information To Commit Fraud In Your Name. This Can Include Applying For Loans Or Credit Cards, Or Even Attempting To Change Ownership Of The Property You Are Purchasing.

How To Protect Yourself:

• Secure Your Personal Information: Avoid Sharing Sensitive Information, Such As Your National Insurance Number Or Bank Details, Via Unsecured Email Or Over The Phone Unless You’re Certain Of The Recipient's Identity.
• Monitor Your Credit: Regularly Check Your Credit Report For Any Unauthorised Activity.

3. Mortgage Fraud

Mortgage Fraud Can Occur When Someone Provides False Information On A Mortgage Application, Either By Inflating Income, Misrepresenting Debts, Or Lying About Property Details. This Could Be Done By A Borrower, A Broker, Or Even A Third Party.

How To Protect Yourself:

• Provide Accurate Information: Ensure All The Information On Your Mortgage Application Is Truthful And Accurate. Misrepresentation Can Have Serious Legal Consequences.
• Work With Reputable Professionals: Use Licensed Mortgage Brokers And Lenders Who Are Regulated By The Financial Conduct Authority (Fca).

4. Deposit Fraud

Deposit Fraud Happens When Criminals Intercept And Divert The Funds You Intend To Use As A Deposit For The Property. This Can Be Closely Related To Misdirection Fraud, Where They Provide False Bank Account Details.

Recents fraud news in real estate : 

Land investment 'scams' warning - BBC News

Cash deposits vanish in house buying scam - BBC News

How To Protect Yourself

• Double-Check Payment Details: Always Verify The Bank Account Details Provided By Your Solicitor Before Making Any Payments, And Confirm These Details With Them Directly.
• Use Secure Payment Methods: When Transferring Large Sums, Consider Using Secure Payment Methods Such As Chaps (Clearing House Automated Payment System) For Extra Protection.

Do Not Transfer Funds Without Verification

• Final Verification: Before Transferring Any Deposit Funds, Ensure You Have Thoroughly Verified All Payment Details. Do Not Proceed With The Transfer Until You Are Completely Certain Of The Account’s Legitimacy.
• Be Wary Of Sudden Changes: If You Receive Any Unexpected Or Last-Minute Changes To Payment Instructions, Treat Them With Suspicion And Verify With Your Solicitor Immediately.
• Down Payment deposit: The down payment (the buyer's contribution to the purchase, separate from the mortgage funds) should only be paid to the conveyancer or solicitor handling the transaction. It is important to avoid making any payments to other parties, such as the mortgage advisor, estate agent, vendor, or any third party, to ensure the security and legitimacy of the transaction.

The Exchange And Deposit Process

The Exchange Of Contracts Is A Critical Stage In The Home-Buying Process. It’s The Point At Which The Buyer And Seller Exchange Their Signed Agreements, Legally Binding Both Parties To The Transaction. Here's What You Need To Ensure Before Exchanging:

Checklist Before Exchange

• Satisfied With Searches, Survey, And Contract Details: Ensure All Property Searches, Surveys, And Contract Details Meet Your Expectations.
• Mortgage Confirmation: Your Lender Should Have Confirmed Your Mortgage.
• Deposit Readiness: Be Ready To Pay The Deposit. If Using A Help To Buy Or Lifetime Isa, Instruct Your Legal Representative To Apply For The Government Bonus.
• Cleared Funds For Additional Costs: Ensure You Have Cleared Funds For All Associated Costs, Including Stamp Duty And Removal Expenses. Be Aware That Bank Charges May Apply For Transfers.
• Building Insurance: Organise Building Insurance Before Exchange, As You’ll Be Legally Responsible For The Property Once The Contracts Are Exchanged.
• Completion Date: At Exchange, You’ll Agree On A Completion Date, Often Within 2-4 Weeks, When You Can Move In Or Start Work On Your New Home.

Legal Commitment At Exchange 

Exchanging Contracts Is A Significant Legal Commitment. Once You Exchange, If You Withdraw From The Agreement, You May Lose Your Deposit And Could Be Liable For Other Costs. Conversely, If The Seller Withdraws, They May Owe You Compensation.

Consider Life Insurance: Given The Gravity Of This Commitment, Consider Taking Out Life Insurance Before You Exchange, Especially If Required By Your Mortgage Lender.

Buying A Rented Property: What You Need To Know

Buying A Rented Property, Whether With A Sitting Tenant Or With The Intention Of Renting It Out, Can Be A Lucrative Investment Option. However, This Process Involves Specific Legal, Tax, And Mortgage Considerations That Go Beyond The Scope Of A Typical Property Purchase. If You’re Considering This Route, It’s Crucial To Seek Expert Advice To Fully Understand The Implications Of Becoming A Landlord.

Buying A Rented Property To Live In

If Your Goal Is To Buy A Rented Property To Live In Yourself, The Process Is Generally Similar To Buying A Property That Was Previously Owner-Occupied. You’ll Need To Take The Same Steps To Ensure The Property Is Right For You, Including Arranging Surveys And Researching The Location Thoroughly.

Key Considerations

1. Tenant Occupancy: The Property May Still Be Occupied By A Tenant When It’s On The Market. In Such Cases, The Current Landlord (Seller) Is Required To Give The Tenant A Notice Period To Find A New Home. This Could Extend The Time It Takes To Complete The Sale, So It’s Essential To Ask The Seller What Arrangements They Have Made With Their Tenant.
2. Respecting The Tenant’s Home: When Visiting The Property, Remember That It Is Still The Tenant’s Home. Be Respectful Of Their Space And Belongings, Just As You Would Expect Others To Be Respectful Of Your Own Home.
3. Notice For Viewings: The Landlord Is Legally Required To Give The Tenant At Least 24 Hours’ Notice Before A Potential Buyer Visits The Property. Keep This In Mind When Scheduling Viewings, As It’s Important To Coordinate With Both The Landlord And The Tenant.
4. Ensure Your Conveyancer Is Properly Regulated: In the UK, solicitors are regulated by the Solicitors Regulation Authority (SRA), while licensed conveyancers are regulated by the Council for Licensed Conveyancers (CLC). It is crucial to verify that your conveyancer is registered with the appropriate authority to ensure compliance with industry standards and protection for the public. The SRA register is essential for safeguarding the public, as it ensures that solicitors and law firms adhere to established rules and regulations. This includes all solicitors and most law firms in England and Wales that offer conveyancing services.

Be Cautious With Social Media 

Fraudsters Often Gather Information From Social Media To Commit Fraud. They Might Use Details From Your Profiles To Track Your Property Transaction, Making It Easier To Target You.

How To Protect Yourself:

• Limit What You Share: Avoid Posting Details About Your Move, Such As The Day Your Offer Was Accepted, Your Moving Date, Or Any Information About The Property Or Its Location.
• Be Wary Of Open Groups: If You’re Part Of Open Groups On Social Media Platforms Like Facebook, Where Others In The Property Transaction Chain Are Also Members, This Could Expose Sensitive Information. Criminals Could Use This To Their Advantage.
• Avoid Open Discussions: Refrain From Discussing Your Property Transaction In Open Online Forums Where Fraudsters Could Easily Access This Information.

What to Do If You Suspect You've Been Scammed

If you believe you've fallen victim to a scam, it's essential to act quickly to protect yourself and recover any potential losses. Follow these steps:

1. Report to the Police: Contact your local police department as soon as possible to report the fraud. They will start an investigation and can reach out to us directly for any necessary information. We will fully cooperate with their efforts.
2. Report to Action Fraud: File a report with Action Fraud, the UK's national fraud and cybercrime reporting centre. You can submit your report online at Action Fraud or by calling 0300 123 2040 (Monday-Friday, 8am-8pm).
   When reporting, please provide the following details:
   • Amount you transferred
   • From which account (your account details)
   • To (Scammer's account details)
   • Time of the transaction
   • Your full address
   • Police complaint reference number
   • Action Fraud reference number
   • A detailed explanation of what happened when you went to see the property
   • Any other information that could assist in the investigation
3. Contact Your Bank: Inform your bank immediately about the fraudulent transaction. They can help you recover your funds and take steps to close any compromised accounts.

Protecting Yourself From Land Registry Fraud As A Buyer 

To Safeguard Your Property Purchase From Land Registry Fraud, Consider The Following Steps:

• Verify The Seller’s Identity: Have Your Solicitor Confirm The Seller's Identity And Ownership, Especially If The Property Is Unoccupied Or Mortgage-Free. This Ensures You're Dealing With The Legitimate Owner.
• Monitor The Property: Even Before Completing The Purchase, Sign Up For The Land Registry's Free Property Alert Service. This Service Notifies You Of Any Changes Or Applications Related To The Property’s Title, Allowing You To Detect And Respond To Suspicious Activity Early. Learn More About It: Https://Www.Gov.Uk/Protect-Land-Property-From-Fraud
• Apply For A Title Restriction: Request The Seller To Place A Restriction On The Property's Title. This Requires A Solicitor Or Conveyancer To Verify The Owner's Identity Before Any Transaction Can Take Place, Adding An Extra Layer Of Security.
• Update Contact Details: After Purchasing The Property, Promptly Register Your Up-To-Date Contact Information With The Land Registry To Receive Alerts About Your Property.

Protecting Yourself From Conveyancing Fraud

As A Homebuyer, Safeguarding Yourself From Conveyancing Fraud Is Crucial. Here’s What You Need To Know:

• Secure Your Email Account:

• Use Strong Passwords: Ensure Your Email Account Has A Strong, Unique Password.
• Enable Two-Factor Authentication: Add An Extra Layer Of Security By Using Two-Factor Authentication (2fa).R 

• Verify Payment Details:
  • Direct Confirmation: Always Confirm Payment Instructions With Your Solicitor Directly Via A Trusted Phone Number Or In Person.
  • Beware Of Email Changes: Do Not Rely Solely On Email Communications For Payment Details.
• Use Secure Payment Methods:
  • Opt For Chaps: When Transferring Large Sums, Use Secure Methods Like Chaps (Clearing House Automated Payment System) To Ensure Safe Transactions.
• Know Your Legal Recourse:
  • Report Fraud: If You’re Scammed, Report The Incident To Action Fraud Or Your Local Police Immediately.
  • Seek Legal Advice: Consult A Lawyer To Explore Your Options For Recovering Lost Funds And Understanding Legal Proceedings.
• Understand Long-Term Impacts:
  • Financial Consequences: Be Aware That Fraud Can Lead To Significant Financial Setbacks And Difficulties With Future Transactions.
  • Emotional Toll: Recognize That The Emotional Impact Of Fraud Can Be Severe, Causing Stress And Anxiety.
• Utilize Bank Support:
  • Monitor Alerts: Pay Attention To Any Warnings From Your Bank About Unusual Transactions Or Discrepancies.
  • Seek Assistance: Contact Your Bank For Help If You Suspect Fraud Or Need Guidance On Securing Your Accounts.
• Use Technological Solutions:
  • Encrypted Communication: Employ Secure, Encrypted Messaging Platforms For Communicating With Your Solicitor.
  • Fraud Detection Tools: Stay Updated On Technologies That Help Detect And Prevent Fraud.
• Be Aware Of Broader Risks:
  • Comprehensive Awareness: Recognize That Conveyancing Fraud Is Part Of A Larger Spectrum Of Real Estate Fraud, Including Mortgage Fraud And Identity Theft. Remain Vigilant Throughout Your Property Purchase Process.

 

15 Things Not To Do When Buying A Property

1. Don’t Transfer Funds Without Verifying Bank Details Directly With Your Solicitor.
2. Don’t Share Details Of Your Property Purchase On Social Media.
3. Don’t Neglect To Check The Seller’s Identity Thoroughly.
4. Don’t Proceed Without Signing Up For The Land Registry Property Alert Service.
5. Don’t Ignore The Importance Of Applying For A Title Restriction.
6. Don’t Fail To Update Your Contact Information With The Land Registry Post-Purchase.
7. Don’t Skip The Step Of Verifying Payment Details Before Making A Deposit.
8. Don’t Underestimate The Need For Secure Payment Methods For Large Transactions.
9. Don’t Proceed Without Ensuring Your Mortgage Application Is Accurate.
10. Don’t Overlook Potential Fraud Risks When Making An Offer.
11. Don’t Disregard The Legal Implications Of Buying A Property With A Tenant.
12. Don’t Bypass Conducting Thorough Research On The Property.
13. Don’t Ignore The Need To Arrange Building Insurance Before Exchanging Contracts.
14. Don’t Hesitate To Ask Your Solicitor For Additional Proof Of Ownership.
15. Don’t Forget To Regularly Monitor The Status Of Your Property After Purchase.

DISCLAIMER

99Home Ltd makes every effort to ensure the accuracy of details provided in property particulars and advertisements. However, should the buyer or any associated parties become aware of any incorrect, inaccurate, or misleading information, including photos or descriptions, we urge you to notify our agency immediately.

Please note that 99Home Ltd offers no warranty or guarantee for appliances, chattels, or fixtures and fittings included in the sale. Properties are generally sold as seen, and we strongly recommend that buyers and sellers review the Fixture & Fitting Forms (TA07), Property Information Form (TA06), and if applicable, the Leasehold Information Form (TA10).

This property advertisement does not constitute formal property particulars. Your conveyancer should thoroughly review the sale papers, title, and other related property documents, and provide professional advice prior to exchanging contracts or completing the sale. Additionally, we strongly advise conducting a full property survey to protect your interests, and ensure that your chosen surveyor is a member of the Royal Institution of Chartered Surveyors (RICS).