Common Legal Issues When Selling Your Home – and How to Avoid Them

Selling a property in England involves more than finding a buyer and agreeing a price. There is a conveyancing process to respect and observe.   This legal process involves formally transferring ownership of a property from a seller to a buyer.  Typically, this process can take around 8-10 weeks to resolve.  Unfortunately, there are several legal issues that frequently arise that can delay that process, and if these are not addressed at all, they could lead to a sale falling through. This short guide explains some common problems experienced by Sellers when they are dealing with the sale of their home - and how to avoid them.

1. Title Defects

Problems with an existing legal title are one of the most common reasons for delay.  Examples of a title defect include:

• Missing title deeds

• Errors shown on Land Registry title  plan boundaries

• Absence of legal easements across third party land

• Breaches of restrictive covenants noted on the title

• Errors / outdated information shown on the title registers.

• Other Restrictions or covenants affecting the property that must be complied with prior to a sale.

  
  

How to avoid this: Check your title documentation carefully (ideally with the help of your solicitor and agent) before marketing the property.  Any issues that come to light at an early stage can be considered and if possible, addressed before the property is put to market.  If your property is not registered at HM Land Registry, do consider voluntary registration.

2. Boundary Disputes

Unclear or disputed title boundaries can lead to complications during conveyancing. If you are asking a buyer to purchase your home for full market value, why should they purchase the property if there is uncertainty over the extent of the land or a potential dispute with a neighbour?

How to avoid this: Review your registered title plan and satisfy yourself that the general legal boundaries shown are clearly defined and reflect the extent of the property to be sold on the ground. If there is a dispute, seek separate legal advice from a solicitor with a specialism in property litigation at an early stage.

3. Planning Permission and Building Regulation Issues

If you have carried out alterations or extensions to  your home without necessary planning consents or you have not procured the final ‘sign off’ from the building regulation inspector, this can cause problems for a buyer and their mortgage lender.

How to avoid this: Consider carefully what work has been undertaken at the property.  Ensure any planning consents  for such works are to hand and that any significant / structural works have necessary building regulation certificates before listing the property. If documents are missing, you should speak to your solicitor at an early stage to ascertain what options are available to address the missing documentation.

4. Leasehold Complications

(a) Basic Administration.  For leasehold properties, issues such as unpaid service charges, ground rent arrears, or missing management information can often be a cause of unnecessary delay.

How to avoid this: Ensure all payments are made up to date to your respective landlord / managing agent and obtain and keep a note of the necessary contact details required to request the management pack.  This should be handed to your solicitor from the outset – and pack requested as soon as you have a buyer for the Property.  This ensures the management pack can be requested at an early stage.

(b) Issues with the Lease itself.  For leasehold properties, it is common for issues to arise with the drafting of the original lease. 

How to avoid this: Whilst some issues may not come to light until the conveyance is ultimately underway, instructing your solicitor before the property is put to market to review your lease and determine if a formal variation may be required would be advisable.   The requirements of many high street banks have changed over the years, and whilst the inclusion/omission of some clauses may have been acceptable in the past, it might not necessarily be the same case now.  Some clauses, including escalating ground rents, will certainly not be acceptable – so picking up on such defects at an early stage is advisable –you can discuss the complications arising with your solicitor in greater detail.

5. Restrictive Covenants

Some properties are subject to restrictive covenants.  Those covenants may limit what an owner can do with their property.  For example, a restriction on building an extension or using the property in a particular way.  Sometimes, an owner of a property may have breached those covenants during their period of ownership.

How to avoid this: Check your title for any such covenants and consider whether there has been a breach of the same.  If there is a known breach, you should seek further advice from your solicitor. 

In summary

• Instruct your solicitor as soon as you decide to sell.

• Gather all relevant documents, including title deeds, planning permissions, and guarantees.

• Try to anticipate what issues may arise and how these might best be resolved before a purchaser is found. 

• Be transparent with your solicitor – they are on your side!