What is the guarantee for the property buyer that he or she will not get gazumped?
Once the negotiation process is over and a price has been agreed, the buyer will put down a reservation fee which is about 1% of the property sale price. The reservation fee should be held by an appointed solicitor or the estate agent until all necessary checks are made and contracts are signed. The reservation fee shows that the buyer is committed but it is also a guarantee for the buyer that he or she will not get gazumped.
An appointment will be arranged to see your solicitor right after the reservation fee is taken.
The contract is then drawn up by a solicitor, and though not limited to this list, it should include the following 7 points for it to be a valid contract of sale:
Reference to the vendor
Reference to the purchaser
The subject matter has to be described as accurately as possible. If it does not exist at the stage of signing the contract, for example, if it’s a property to be built in the future, reference to subject specifications must be determined accurately.
The purchase price
The terms of payment
The delivery date and
The date of the transfer of title deeds
Remember that the legalities of this phase are very important. If you have any questions or concerns, they need to be addressed right away by your estate agent or solicitor.