The Buying Process

Please note that different systems of real estate transaction apply in different parts of Great Britain. This article applies specifically to England and Wales. A different system operates in Scotland.

Buying property in England is not for the faint-hearted. The real estate laws, which seem to come from another era, permit both buyer and seller to re-negotiate or even walk away from deals even after offers have been made and accepted, virtually right up to the last minute.

The Offer

The purchase process begins with the making of an offer to the seller. Offers are often made orally via the estate agent. There may well be some negotiation and counter offers before agreement is reached. In any case all offers to buy should be made "subject to survey and contract".

The Survey

Once an offer is accepted you will probably wish to arrange for a survey (professional inspection of the property). Different levels of inspection are available. If you are buying on a mortgage the lender will almost certainly require a valuation to be carried out to protect their capital in the event of default.

The lender's valuer/surveyor may also offer to carry out more detailed inspections (at extra cost) or you may wish to shop around or employ an inspector on personal recommendation. Be sure to check their qualifications and professional body memberships.

A valuation merely consists of the surveyor's opinion of the market value of the property. No details are included. A "Home Buyer's Report" is the next level of survey. The surveyor will make a more detailed inspection of the property and provide a report of around 20 pages highlighting potential problems. The home buyer's is usually based on a visual inspection coupled with the surveyor's experience and does not carry any guarantee in the event of problems that were not identified.

The most comprehensive option is the full structural survey. This does include certain tests and it is possible to sue the inspector in the case of problems found later that should have been identified but were not.

There may also be a need to obtain specialized inspections, eg for electrical or plumbing installations. This need may be highlighted in the general survey report, from information communicated by the seller, or your own observations.

In the light of the survey(s) results you may decide to go ahead, walk away, or re-negotiate price taking account of necessary repairs.