Home sales and purchases taking excessively long to finalize - strategies for expediting real estate deals
In recent years, property sales in England and Wales have been taking longer to complete, a trend often attributed to the "Dickensian legal process." The high delays are primarily due to increased administrative and legal complexities, heightened scrutiny in mortgage and title processes, and market uncertainties caused by economic factors such as inflation and changes in interest rates.
One of the contributing factors to these delays is the role of estate agents. Regrettably, some estate agents have been found to be withholding material information, which can lead to significant delays in the sales process. Being honest and upfront about any issues can help a property sale progress smoothly.
To mitigate potential issues, buyers should consider instructing a conveyancer earlier in the process. This early involvement can help highlight any problems with a property that may not be immediately apparent. The choice of estate agent and conveyancer is also crucial to a successful property sale. Going cheap with these professionals can lead to issues due to the level of due diligence now required.
Shopping around for an estate agent and conveyancer and reading reviews carefully is essential. Solutions such as digital packs and digital logbooks are needed to bring all necessary information together and cut down on the time conveyancers spend finding this. For instance, PropertyMark members have a Property Information Questionnaire for sellers to complete before a listing goes live, which can help streamline the process.
Property listings should include material information such as leasehold charges and restrictions to avoid delays during the conveyancing process. This transparency can help prevent buyer pull-outs and gazumping, common issues caused by delays and uncertainty in the sales process.
It's worth noting that a property sale isn't legally binding in England and Wales until it reaches the exchange stage. Historically, most property sales used to take around 12 weeks to reach this stage, but it now takes 13 to 16 weeks or more. This extended timeline is due, in part, to the sales process becoming "administratively intensive" due to successive legislative changes.
Delays in property sales can be frustrating for all parties involved. However, by instructing an estate agent early, getting paperwork in order, and choosing the right professionals, buyers can increase their chances of a successful sale. By staying informed and being proactive, buyers can navigate the complexities of the property market and secure their dream home.
