8 Step Summary Guide to Buying and Selling Property in Jersey
Completing the purchase of a new home should be a happy and significant moment. Unfortunately, there will always be instances where lady luck seems intent that all will end in tears. With this in mind, here are some steps that you, the prospective purchaser, can take to ensure the odds on a happy outcome are edged somewhat more in your favour...
Index
1. Finance
2. The Property
3. Instruct Lawyer
4. Insurance
5. Arrange Removals
6. Utility Companies
7. Time Scales
8. Choose the Right Lawyer
Finance
Before you start house hunting, you need to ascertain how much you can borrow and thus what price (taking into account surveyors and legal fees and disbursements) you can afford to offer. Please note that stamp duty is payable on a loan as well as a house purchase.
Once you formalise the loan, ensure the information you provide in respect of any loan application is accurate. Providing inaccurate information can amount to a criminal offence. If an offer of a loan is conditional on certain insurance policies being in place, take steps to ensure they are in place before completion. Carefully read any loan offer and promptly return it duly signed to the lender. Check that required funds will be available before completion. Little will happen if the money is not available on the day!
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The Property
You’ve found your dream house, but is it all it seems? Valuation and structural surveys will give comfort that the house is worth what you are paying and is not going to require unscheduled works to keep it standing. Will the property re-sell? Do there seem to be any issues with neighbouring properties? If purchasing from a developer, what is included in the price and what guarantees are provided as to structure and workmanship?
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Instruct Lawyer
It is probably never too early to instruct your lawyer in respect of your proposed purchase. If possible, provide your lawyer with clear, written instructions. Keep him advised, not least if there are changes to the transaction. Ask your lawyer to provide you with a written statement of all the fees, disbursements and stamp duty you will be charged, preferably in the form of a draft completion statement.
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Insurance
You will become the owner of the property immediately contract passes before the Royal Court and should insure the property in your name (and possibly that of your lender) for its full replacement value from that time. In any event, and especially if a mortgage is to be taken out, consider taking out life, critical illness and disability insurance cover.
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Arrange Removals
Chaotic removals are usually caused by a failure to give the removal company adequate notice. People habitually make these arrangements too late.
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Utility Companies
No-one wants to move in to find they can’t boil a kettle for that much needed cup of tea. The necessary application forms that need to be completed and returned to the various utility companies can be down-loaded from their various web-sites. Application forms should be returned at least four working days before completion. If inadequate notice is given, services may not be available when you move in or connection costs might be higher.
Useful Links (opens in a new window)
Jersey Water connections
Jersey Electricity Company
Jersey Gas connections
Jersey Telecom connections
Sky - moving house guide
TV Licence
Jersey Post - postal re-direction guide (PDF)
Parish Rates (PDF)
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Time Scales
As can be seen from the above a fair amount of planning has to be undertaken to ensure that everything happens when it should. Working to a realistic time-table is important. Although quicker completions are possible, it is prudent to allow at least four weeks to complete the transaction.
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Choose the Right Lawyer
Last but not least is the value of striking up a good relationship with your lawyer. Given the antiquated, obscure and demanding nature of the Island’s conveyancing system, competence and experience are at a premium.
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For detailed advice on buying or selling residential property in Jersey please contact Gavin Renault.
The information and expressions of opinion contained in this guide are not intended to be a comprehensive study or to provide legal advice and should not be treated as a substitute for specific advice concerning individual situations.