Who Does What with Your Plot? - Part Two

Read part one for information on contracts and terms of engagement

Pre-Completion: Prior to completion the solicitor will continue with various checks and searches and get you to sign the transfer and any mortgage documentation. They will also complete the Stamp Duty Land Tax return, advise you of the amount of monies required to complete and obtain this from you for funds to clear in good time.

Completion: On the day of completion the solicitors will receive any mortgage advance and transfer that money, together with the money you have given them, to the other side’s solicitors. Any Stamp Duty Land Tax that is due will also be sent at this time.

The amount that will have been required from you will cover the extraneous payments that have to be made to others, including the estate agents, who will have sent their invoice to the solicitors.

Post Completion: After completion all relevant documents are stamped and your ownership of the land is registered with HM Land Registry. This can take quite some time and it may be months before the Certificate of Ownership is available. Once it is, this, together with other relevant deeds, documents and policies, will be sent to your lender, if you have one, to hold for the duration of the mortgage.

What Can Go Wrong? All of the legal problems that affect property are magnified in the sale and purchase of vacant land. For a start, unoccupied land is the most likely to remain unregistered and that means that ownership has to be established by means of fusty old documents and deeds.

A self-builder should always ask the question, “Why hasn’t this land been developed already?” And the answer will often be that there is some legal impediment such as a restrictive covenant or an inability to demonstrate a clear right of access.

Some solicitors or conveyancers are like rabbits in the headlights when these problems occur, seemingly unable to see a way through. Others, perhaps those with more experience, will realise that maybe the covenant is ‘dead’ or that the land clearly enjoys access and that all that is necessary is to either get the impediment removed or to take out a simple Indemnity policy to cover against any unwanted restriction.

There is no doubt that this is where local knowledge and experience is paramount.

How Can You Help? In most cases the solicitors never have sight of the land and all they’ve got to go on is the documents and plans provided by the other side. If an Adverse Possession is taking place on the land with a neighbour occupying or using part of it, they may have no knowledge of this. You need to look out for this and raise the issue with them.

If the measurements of the land on the plans with the title deeds don’t accord with what’s actually on site or the details of your site survey, they need to know.

Conveyancers: A new breed of professionals has grown up in recent years in the form of companies who solely carry out conveyancing. Some of them are very good and in some ways they resemble a stand-alone department of what is often a distinct section within a legal practice. Some, on the other hand, are simply call centres where unqualified people tick boxes on a set procedure. Sometimes this works. It works quite well for simple house transactions. But it can fall down badly when it comes up against the problems that occur with building sites.

Choosing the Best Solicitor

Stephen Crompton, a partner of Russell and Russell Solicitors, explains the importance of your choice of legal professional.

Buying land involves far more thought for both the buyer and the solicitor than the purchase of a house, so instruct a solicitor with the necessary experience and expertise to deal with any issues that may arise and to give reliable guidance throughout. Is the land subject to covenants (restrictions) that prevent or limit development? Does the land have all necessary easements (rights) in place for access and services? Are there any rights in existence which would prevent or restrict development? These may appear simple questions to answer but they can be far from such.

Along with resolving these issues, a good solicitor will obtain more information about searches. Also, the wording of conditions in contracts is a significant area of risk and requires a particular expertise.

Instruct a solicitor who specialises in property transactions but also has experience and expertise in land purchase for development. Choose someone that you feel you will be able talk to openly. Beware cheap fee packages: not all conveyancers are the same and a transaction of this type should be sufficiently important for you to seek a quality service.
Contact 01204 375331 info@selfbuildsolicitors.co.uk.

Further reading:

• Who Does What with Your Plot? - Part One
• The Essential Plothunter's Checklist
• Read more from David Snell in his Homebuilding Blog