Have you heard about repossessed property? Recognised for the low price and hassle free possession. These are the properties that are sold by the mortgage lenders. When a buyer unable to repay the loan, the lender takes the ownership of the property and sells it through agent or auction. However, as far as the conveyancing repossessed property is concerned, it is more or less same in the process. However, few important things and checks are vital for the same process. People often ignore it with the lures of the low purchase price.
Conveyancing repossessed property
The first thing to consider is that the lender would not have any idea about the property. During the regular conveyancing process, the solicitor interacts with the seller and gets the crucial information. However, this is not the same for repossessed property. So, whether you are going for an auction or taking the property from any agency, you must conduct an independent search on the property. Everything must be clear before you decide to pay the amount to the lenders.
Title of the property
This remains a concern for the people that title of the property can cause problems during conveyancing. Well, not in the case of the repossessed property. The mortgage lender has the capability to sell a property, and the title does not matter. Even the title holder cannot come and ask for the property. So, as a buyer, you should be relatively relaxed.
Visit the Property
The mortgage lenders would try to get rid of the property as soon as possible. However, the low price, agents’ description, and some photos may not be enough to the buyer. The buyer must visit the property. This would help them to understand the condition of the house, and the independent assessment of the value can be an option.
Conveyancing repossessed property for the leasehold properties is a little complicated. The buyer should ensure to get all the information through the solicitor from the management. The service charges and other dues of the previous owners should be clarified. The mortgage company must clear any due amount by the previous owner. If you are opting for a new mortgage for the repossessed property, then your lender would also ask for the same details.
Role of Solicitor
Solicitor plays a crucial role for the conveyancing of repossessed property. An experienced solicitor is very much required to gather information from the various sources about the property. This would ensure that the buyer is not risking anything while opting to buy the repossessed property. However, one thing is for sure that a buyer would never have same information of the property for repossessed property than in the typical transaction from the seller to the buyer. The solicitor must check the auction paper very carefully.
All the searches and the information should be ready beforehand. Once the auction completes and the buyer has signed the papers, you are bound to pay the advance amount. The time between the final payments remains very less, and if you fail to pay or decide otherwise, then you lose your money.