Buying a house, no estate agent or solicitor?

[FACEOFF]

One of my best friends is just about to sell one of his profitable rental properties to generate some cash for another deal and has asked me if I want to buy it. I was wondering if, as we are best friends and totally trust each other, if I can buy it without using a solicitor? Just wondered if I can pay him and he just signs over the deeds etc? Thanks for any advice.

 

[self-sale]

You both need a solicitor to protect each others interest. Feel good about saving on estate agents commission but don't cut corners legally.

I hope this helps.

One of my best friends is just about to sell one of his profitable rental properties to generate some cash for another deal and has asked me if I want to buy it. I was wondering if, as we are best friends and totally trust each other, if I can buy it without using a solicitor? Just wondered if I can pay him and he just signs over the deeds etc? Thanks for any advice.

 

[DreamLifestyle]

Yes you still need a solicitor so you are both protected even though you are friends, but you can cut out the estate agents.

 

[obscure]

I am losing count of the threads on here about deals gone bad because people didn't take measures to protect themselves and it is often as a result of friends entering into business/a deal without any legal paperwork. At some point something goes wrong and as there is no paperwork to fall back on the dispute gets nasty and friendships end.

Do the deal without an estate agent by all means but for heaven sake get a lawyer. Not only will it ensure that all the paperwork is done properly but they will also make sure the council aren't planning to build a road through your new purchase.

 

[Chippie]

Pay a firm of solicitors to do all the paperwork, searches etc. What you save doing it yourself is more than wasted on potential costly errors, not to mention all the wasted time trying to work out what you need to do in the first place!! If you shop around you will find that most solicitors offer conveyancing for a set fee and they can differ quite considerably. They should give the work to a conveyancer in the practice who's rates are a lot cheaper than that of a solicitor, but is supervised by a solicitor! (If that makes sense!) We always do this when buying property and find it the most cost effective way of purchasing.

If you intend purchasing many properties then it may be worth you learning the conveyancing process and doing it yourself. However, even then you will have to keep up with changes in the law/legislation. We are regular purchasers of rental property and find the fixed price conveyancer route to be by far the best.

 

You both need a solicitor to protect each others interest. Feel good about saving on estate agents commission but don't cut corners legally.

I hope this helps.

you certainly don't need a legal eagle,plenty of low cost convayencing companies out there who will be far more efficient than a solicitor in the main and won't charge you £500 for an hours work.

Earl

 

[extispan]

Check on HMRC.gov.uk
I am no expert, but i know rules under Private Residence contain in CGT, you are entitle to some forms of relief.
cost of sale i.e. professional fees & agent fee can be taken off from the Sale Proceeds value; less purchase Price; any enhancement cost; your property was bought before 1998, there will be indexation relief and taper relief; Private Residence relief e.g. the period of time you have physically lived there, 36mths for any reasons, 3 or 4 years if you worked away.
but don't take above for granted, I advice you to check it out according to your circumstances cos the law will be changed (again) after april08.

 

[Keepsmilin]

One of my best friends is just about to sell one of his profitable rental properties to generate some cash for another deal and has asked me if I want to buy it. I was wondering if, as we are best friends and totally trust each other, if I can buy it without using a solicitor? Just wondered if I can pay him and he just signs over the deeds etc? Thanks for any advice.

Check if this can help;

http://www.ezyletservices.co.uk/management/legal_advice

Cheers

 

[Debbony]

Are solicitors of any benefit if the purchase is to be cash, of the house next door (therefore I've known the history for the last 45 years that I've lived here, together with any planning permissions etc)?

 

[Jet Virtual]

One of my best friends is just about to sell one of his profitable rental properties to generate some cash for another deal and has asked me if I want to buy it. I was wondering if, as we are best friends and totally trust each other, if I can buy it without using a solicitor? Just wondered if I can pay him and he just signs over the deeds etc? Thanks for any advice.

The fact that you are dealing with your best friend is even MORE reason to have everything go through a third party!

 

[MikeJ]

OP is four years old.

 

[Steve Sellers]

Are solicitors of any benefit if the purchase is to be cash, of the house next door (therefore I've known the history for the last 45 years that I've lived here, together with any planning permissions etc)?

Just because you have lived next door for all that time doesn't mean you know what is not obvious from looking at the house - eg outstanding charges on the property etc etc. Paying a solicitor is a must in my opinion, and if you are paying in cash will you have a proper paper trail to keep the HMRC happy..........wouldn't want a money laundering investigation to take place...

 

[Sherlock Homeless]

Old thread is old, but for those who are interested - no you don't need a solicitor. An insider spills the beans on this nice little earner of a scam and shows you how to do it (much cheaper, quicker, easier and with more legal cover/insurance against nasties) in this book:

Conveyancing Fraud.

 

[internetspaceships]

One of my best friends is just about to sell one of his profitable rental properties to generate some cash for another deal and has asked me if I want to buy it. I was wondering if, as we are best friends and totally trust each other, if I can buy it without using a solicitor? Just wondered if I can pay him and he just signs over the deeds etc? Thanks for any advice.

no No NO!

Get a solicitor and do it properly. Anyone telling you to do otherwise is a muppet.

Think about it. You want it done right so you can't afford to let friendship get in the way.

edit - - arggghhh 4 years old? Sorry I got caught there but seriously the advice still stands.

Great advice on how it could be done, with someone with homeless in their name. Fills me with confidence - not.

 

[Steve Sellers]

Old thread is old, but for those who are interested - no you don't need a solicitor. An insider spills the beans on this nice little earner of a scam and shows you how to do it (much cheaper, quicker, easier and with more legal cover/insurance against nasties) in this book:

Conveyancing Fraud.

Does that book come with PI Insurance for when an individual does it on the cheap, cocks up on a chancery search and ends up in BIG trouble...no.... didn't think so.

 

[Sherlock Homeless]

Does that book come with PI Insurance for when an individual does it on the cheap, cocks up on a chancery search and ends up in BIG trouble...no.... didn't think so.

You really aught to read the book before casting aspersions, my good man. You may learn a thing or two rather than appearing a judgemental fool.

Michael Joseph was an ex solicitor himself and was disgusted by what goes on in the "profession", hence the books to help the public. Up until his recent death he used to help and guide people through the process (which was spelled out step by step in the books anyway but some people need a hand to hold) and prepare a pack with all the requisite forms.

I personally used the info from the book last week to help two brothers doing a RTB from the council on two separate houses. One trusted me, the other didn't. One paid just over a grand and was sorted with 14 days. The others bill is 4 grand and rising and is still waiting a month later but at least he has PI Insurance, eh?

 

[internetspaceships]

4 grand for conveyancing? Which boat did they land on?

 

[kulture]

I always ask for a quote first, and have never paid more than a few hundred pounds. Worth it for the peace of mind.

 

[Steve Sellers]

You may learn a thing or two rather than appearing a judgemental fool.

Are you a solicitor?

 

[DavidAshdown]

One of my best friends is just about to sell one of his profitable rental properties to generate some cash for another deal and has asked me if I want to buy it. I was wondering if, as we are best friends and totally trust each other, if I can buy it without using a solicitor? Just wondered if I can pay him and he just signs over the deeds etc? Thanks for any advice.

I know this is an old post but wondered how many people had spotted the irony here !

"As we are best friends friends and totally trust each other "

Totally trusted so much that the OP had to ask strangers for advice !!

 

[David A]

Old thread is old, but for those who are interested - no you don't need a solicitor. An insider spills the beans on this nice little earner of a scam and shows you how to do it (much cheaper, quicker, easier and with more legal cover/insurance against nasties) in this book:

Conveyancing Fraud.

This is one of two books by Michael Joseph, now sadly dead. The Conveyancing Fraud was the Spycatcher of its time - the days when solicitors charged the earth and did little to protect their clients interests. From this book, I did my own conveyancing on a first purchase of a property in 1984, then a couple more and a sale two years later. Best thing I ever did, as I now know so much about the mechanics of purchase/sale.

His other book is called Lawyers can Seriously Damage your Health. It was a damning critique of lawyers involved in personal injury claims. One of the key scams exposed was the 'strong recommendations' to clients to settle out-of-court - the reason being that the lawyers then receive significantly more fee income out of the settlement than the court would award.

 

[DavidAshdown]

This is one of two books by Michael Joseph, now sadly dead. The Conveyancing Fraud was the Spycatcher of its time - the days when solicitors charged the earth and did little to protect their clients interests. From this book, I did my own conveyancing on a first purchase of a property in 1984, then a couple more and a sale two years later. Best thing I ever did, as I now know so much about the mechanics of purchase/sale.

His other book is called Lawyers can Seriously Damage your Health. It was a damning critique of lawyers involved in personal injury claims. One of the key scams exposed was the 'strong recommendations' to clients to settle out-of-court - the reason being that the lawyers then receive significantly more fee income out of the settlement than the court would award.

Great theory and I am not a lover of lawyers, however anyone who does a simple transaction such as a conveyance is a fool. For such low cost, it is absolute suicide if something is missed !

 

[David A]

Great theory and I am not a lover of lawyers, however anyone who does a simple transaction such as a conveyance is a fool. For such low cost, it is absolute suicide if something is missed !

You didn't get it did you!

The book is called 'The Conveyancing Fraud'. It details how lawyers would regularly 'miss' things. However, at the time it was most difficult to get a lawyer to sue another, and the law society was a gentlemens' club.

I agree that nowadays costs of conveyancing have reduced significantly - the more so now that most properties are Registered - thus from a financial standpoint self-conveyancing is no longer much of a cost saver.

 

[silliker]

A solicitor is a must,it's not just legality but it is also for the safety of both of you.

 

[DavidAshdown]

You didn't get it did you!

The book is called 'The Conveyancing Fraud'. It details how lawyers would regularly 'miss' things. However, at the time it was most difficult to get a lawyer to sue another, and the law society was a gentlemens' club.

I agree that nowadays costs of conveyancing have reduced significantly - the more so now that most properties are Registered - thus from a financial standpoint self-conveyancing is no longer much of a cost saver.

Nope, I didn't get it, I guess mainly because it implied that it was best to do your own conveyancing, even today.

 

[Sherlock Homeless]

4 grand for conveyancing? Which boat did they land on?

That was a lapse as I was thinking of something else. Brother A paid £54.80 in total for his conveyancing, Brother Bs bill is currently at £795 and rising (not counting rental expenses in interim).

Are you a solicitor?

My solicitation days are over, old chum. Just a spectator now.

This is one of two books by Michael Joseph, now sadly dead. The Conveyancing Fraud was the Spycatcher of its time - the days when solicitors charged the earth and did little to protect their clients interests. From this book, I did my own conveyancing on a first purchase of a property in 1984, then a couple more and a sale two years later. Best thing I ever did, as I now know so much about the mechanics of purchase/sale.

His other book is called Lawyers can Seriously Damage your Health. It was a damning critique of lawyers involved in personal injury claims. One of the key scams exposed was the 'strong recommendations' to clients to settle out-of-court - the reason being that the lawyers then receive significantly more fee income out of the settlement than the court would award.

MJ truly was a great, glad to meet another who's benefited from his knowledge of the mechanics of the game.

Nope, I didn't get it, I guess mainly because it implied that it was best to do your own conveyancing, even today.

If you want a job done right, do it yourself as you certainly don't get what you pay for with most at the bar, yaarrrr.

 

[internetspaceships]

If you want a job done right, do it yourself as you certainly don't get what you pay for with most at the bar, yaarrrr.

I don't enough about it to do it myself, and I've always believed in paying a professional to do the kind of work I'm not qualified to do myself.

For the amount of times I move house, it's not worth my time getting all the knowledge to do it myself and frankly my time's worth more than the few quid I'd save. Not to mention the fact that if I get it wrong, I've got nowhere to go with it.

 

[Sherlock Homeless]

I don't enough about it to do it myself, and I've always believed in paying a professional to do the kind of work I'm not qualified to do myself.

For the amount of times I move house, it's not worth my time getting all the knowledge to do it myself and frankly my time's worth more than the few quid I'd save. Not to mention the fact that if I get it wrong, I've got nowhere to go with it.

That's great, you've identified a sector of ignorance. Don't you owe it to yourself or at least have the curiosity to know what goes on behind the curtain? It's a great read for it shows you certain points you can raise/ask the solicitor to make sure he's on the ball and doing what you are paying through the nose for.

I mean, look at the difference in figures and time I linked to you from a recent case using the info in the book vs doing it via a solicitor.

 

[internetspaceships]

Actually I've got a pretty good working knowledge of what's involved in conveyancing and why it's done.

I choose to pay someone to do it for me, but that doesn't mean I am therefore ignorant of what happens.

Your figures seem strange to me, because are you talking about solicitors' fees or solicitors fees combined with disbursements?

When I get a house conveyanced for me I get a fixed price quote at the beginning so I'm not entirely sure why Brother B's costs are rising - OR what the rentals your discussing are about or why indeed they are factored into this.

 

[Steve Sellers]

That's great, you've identified a sector of ignorance.

So keeping to my new tagline of judgemental fool, perhaps you could tell me how:

I personally used the info from the book last week to help two brothers doing a RTB from the council on two separate houses. One trusted me, the other didn't. One paid just over a grand and was sorted with 14 days. The others bill is 4 grand and rising and is still waiting a month later but at least he has PI Insurance, eh?

Fits in with:

Legal Services Act 2007
14 Offence to carry on a reserved legal activity if not entitled

(1)It is an offence for a person to carry on an activity (“the relevant activity”) which is a reserved legal activity unless that person is entitled to carry on the relevant activity.

 

[DavidAshdown]

It's madness. You can't do everything yourself, you have to pay certain people to do what their good at.

As internestspaceship says, "I choose to pay someone to do it for me, but that doesn't mean I am therefore ignorant of what happens".