01. Selling a property

Selling a property involves transferring ownership rights from the seller to the buyer in exchange for a predetermined payment, typically in the form of money. The process involves several steps, from preparing the property for sale to finalising the transaction. Here is a detailed explanation of how the property sale process works in the UK.

Property owners

Property owners are individuals or entities who have legal rights of ownership over a particular piece of real estate. These rights include the right to possess, use, and dispose of the property according to applicable laws and regulations.

Number of owners

In the UK, the maximum number of owners allowed for a single property is four. Properties can be owned jointly by up to four individuals, or by a company or other legal entity. Joint ownership can take various forms, including joint tenants and tenants in common, each with different implications for ownership rights and responsibilities.

Types of owners

Property ownership in the UK can be held by individuals, such as private individuals, couples, or family members, or by legal entities such as companies, partnerships, or trusts. Each type of owner may have different motivations, objectives, and legal obligations related to property ownership.

Finding property owners

To find out how many and who the property owners are for a specific property, individuals can consult the Property Title Register, which is maintained by the Land Registry in England and Wales. The Property Title Register contains information about the legal ownership of properties, including details of registered owners, any mortgages or charges on the property, and other relevant information.

Signing Protocol Forms for a sale

All owners listed on the Property Title Register will need to sign the Law Society's protocol forms when selling or transferring ownership of the property. This process typically involves the conveyancer or solicitor handling the transaction inviting the property owners to ProConvey, where they will need to undergo an ID check.

If property owners are unable to sign the forms themselves (e.g., due to incapacity or death), their representatives, such as attorneys acting under a power of attorney, deputies appointed by the Court of Protection, or executors via a grant of probate, will need to sign the forms on their behalf. This applies only if the joint ownership is for tenants in common. In the case of joint tenants, the other owners can sign on their behalf.

It is important to double-check this information with your conveyancer or solicitor to ensure that the correct parties are identified and the appropriate signatures are obtained in accordance with legal requirements.

The property sale process in the UK

Preparation and valuation	Assessing the property: Sellers need to assess their property’s condition and consider any necessary repairs or improvements to enhance its marketability. Property valuation: Obtaining a professional valuation helps in setting a realistic asking price. Sellers can use estate agents, online valuation tools, or professional surveyors. Gathering documentation: Sellers should compile necessary documents, such as the title deed, planning permissions, building regulations approvals, and warranties for any work done on the property.
Choosing an estate agent	Selecting an agent: Sellers can choose to work with an estate agent to market the property. It is important to select an agent with a good reputation and local market knowledge. Agent agreement: The agreement with the estate agent outlines their fees, marketing strategy, and the duration of the contract. Sellers should review this agreement carefully.
Marketing the property	Creating listings: The estate agent will create property listings with descriptions, photographs, and floor plans. The property is then advertised on property websites, in local media, and through the agent’s network. Conducting viewings: The estate agent arranges and conducts viewings. Sellers should ensure the property is presentable to attract potential buyers.
Receiving offers and negotiations	Offers: Interested buyers make offers through the estate agent. The agent communicates these offers to the seller for consideration. Negotiations: Sellers may negotiate the price and terms with potential buyers. Once an acceptable offer is received, the seller accepts it, often subject to conditions such as surveys or financing.
Legal preparations and contract exchange	Hire a conveyancer/solicitor: Sellers need to hire a conveyancer or solicitor to handle the legal aspects of the sale. This includes preparing the draft contract and managing the exchange process. Respond to inquiries: The buyer’s solicitor will raise inquiries about the property. The seller’s solicitor responds to these inquiries and provides the necessary documentation. Draft contract: The seller’s solicitor drafts the contract of sale. This contract outlines the terms and conditions of the sale, including the sale price, property boundaries, and any fixtures or fittings included in the sale. Exchange contracts: Once both parties are satisfied with the contract terms, they sign the contracts. The buyer pays a deposit (usually 10% of the purchase price), and the contracts are exchanged, making the sale legally binding.
Completion	Final preparations: The seller’s solicitor ensures all financial arrangements are in place for the completion date. This includes redeeming any existing mortgage on the property. Completion day: On the completion day, the remaining balance of the sale price is transferred from the buyer’s solicitor to the seller’s solicitor. The seller hands over the keys and vacates the property. The legal ownership is transferred to the buyer. Settling outstanding payments: The seller’s solicitor settles any outstanding payments, such as the mortgage balance and estate agent fees, from the sale proceeds. The remaining funds are then transferred to the seller.
Property sellers' responsibilities	Legal ownership: Ensure clear title to the property and the right to sell. Accurate disclosure: Provide accurate information and necessary documentation. Legal compliance: Work with professionals to handle legal and financial aspects. Timely communication: Respond promptly to inquiries and coordinate with the estate agent and solicitor.

The property sale process in the UK involves several steps, including preparation, valuation, marketing, legal preparations, and final transactions. Sellers must navigate this process with the help of professionals to ensure a smooth and legally compliant sale. Proper preparation and understanding of each step can significantly enhance the experience of selling real estate.