COVID19, Conveyancing and me…

The landscape of Conveyancing has been shaken to its very core over the last two weeks, and has left clients and Conveyancer’s scratching their heads as to how best to handle the present crisis we face.

The Law Society offered a brief note on their stance, which gave some direction, but it was not until today (26 March 2020), that we finally heard something of substance from the Government.

In short, all of this falls down to each of us to be flexible, to be realistic, and reasonable about what we are expecting to happen. Although the Government is not completely stopping people from moving house, they are advising people to “where possible, delay moving to a new house while measures are in place to fight coronavirus (COVID-19)”. Which, given not least the stance of many removal companies is now that they cannot maintain social distancing, so are cancelling removals, many lenders are not guaranteeing funds release due to reduced staffing levels, and also that Police are now stopping people in the streets, then delaying exchange and completion seems like the most sensible thing to do.

If completion cannot be delayed, then the only way I would suggest completion happens is by way of a simultaneous exchange and completion. There has been some suggestion that clauses could be added to Contracts, however, the Law Society recently commented that they would not be providing any standard wording or conditions for this as it was too wide a spectrum to determine.

Whilst I understand and appreciate that most people will still want to move, it is important to remember that at this time, we are all having to put our lives on hold for a greater good.

Although moving house is an exciting time it should now be delayed wherever possible.

It does not mean that your transaction cannot progress. We are still able to work on your matter, conducting the usual due process, so that we are ready to move you into your dream home just as soon as all this ends, and we can all get back to some level of normality.

Priority at this time though must be given to those matters which have already exchanged and parties are legally bound to complete, or find an alternative solution.

Where Contracts have been exchanged, then all parties should try and work together to arrange and agree the delay of completion, or agree alternative measures, such as Licenses to Occupy, noting of course that this may require permission from any lenders involved beforehand.

Many clients I have spoken to over the last few days are worried about their mortgage offers expiring after exchange, this situation has been clarified by UK Finance, who have said that they will work with anyone who has exchanged Contracts, to find ways to extend their mortgage offer for up to three months, to enable them to move at a later date. If during the extension period the particulars of the transaction change, or the financial circumstances change, then lenders will work with customers to help them manage their finances as a matter of urgency. Of course, if you have not exchanged Contracts then your lender may review the mortgage offer, and I think we may see more of this in the coming weeks and months as more of the population move onto furloughed worker status. (For more information on the furloughed worker scheme, then click here to take a look at our Employment Law Partner’s update and regular vlogs.)

So, what if you want to move, or put your house on the market?

With social distancing now a normal part of daily life, then you can’t open up your house to visitors, which means that the whole process of putting your house on the market, and agreeing a sale will become slightly different. Buyers might ask to do a virtual tour of your house before they make an offer, and if you haven’t yet listed your house, then I am afraid that you are likely to be a little stuck as no one can visit your home during this period of social distancing. This includes surveyors and other professionals, that a prospective buyer may want to attend a property.

Speaking to local estate agents about listing your home during this period may offer some advice about the local market, typical selling prices etc., and will really give you the time to perhaps do a few of the odd jobs around the house, for when we are released from these current restrictions. The time could be used wisely to maximise the selling price of your home.

Click here for full government advice