Archive for September, 2011

Property Inventories – How To Avoid A Legal Dispute

Property inventories are written documents that give a comprehensive report on the condition and contents of a property. They can be used in a court of law as evidence if a dispute arises between a landlord and tenant. It is imperative therefore that a signed inventory is properly documented at the beginning of the tenancy in order to help resolve any future disputes if they arise. The following are the top three tips that you should do if you want to avoid a tenant landlord dispute in cases of property damage.

1. Do write the inventory – The next most important document between the landlord and tenant after the rental agreement is the written inventory. Some landlords fail to have a written inventory and this is never a good idea. Landlords should always a have a written record of the condition and contents of their property at the time the tenant moves in. Without a written inventory the potential for conflict is greater as it will rely on people’s memories what the property condition was at the start of the tenancy.

2. Take detailed records of everything that you consider important – An inventory should contain a detailed account of all the items that are in a property such as the furniture and electrical items. In addition to removable items the inventory should also contain detailed records of fixed items. This will include things such as the condition of the flooring, walls, ceilings, windows and other items that are fixed into or part of the property structure.

It is a good idea to take photographs since images together with written text will give a stronger analysis of the state of the property. The inventory should be as comprehensive as possible to remove any ambiguities. Greater detail and attention in the report should be given to anything in the property that you consider important. This may be anything that is expensive or valuable or things that do not have much monetary value that you consider important.

3. Use a professional property inventory services provider – Landlords can compile property inventories themselves, however, compiling an inventory can be a laborious task. It involves a keen eye for detail and the process of producing a comprehensive report takes time. Landlords who do not wish to use their time in this way can outsource this job to a specialist property inventory services provider. They will have inventory clerks who specialises in this role and produce property inventories to a professional standard. Another advantage of using a property inventory services provider is that they are independent and impartial and can therefore mediate and resolve matters between the tenant and landlord regarding property issues.

5 Great Tips for Buying Property at Real Estate Auction

Auctions are becoming an increasingly popular way to buy property. Selling at auction is a really quick way of dealing with a property and is also a great way for buyers to find property bargains. An auction is different from a normal conveyancing transaction and so you need to be aware of the issues beforehand. If you are thinking of buying a property at auction, you should consider the following tips:

1. Make sure your financing is in place

This is absolutely crucial as if your bid is accepted it creates a legally binding contract. You are then contractually bound to complete the purchase on the agreed date. You must be sure that you will have the funding available, as you stand to lose not only your deposit but may end up paying compensation to the seller as well.

2. Go to an auction in advance

If possible, try to at least go to at least one auction before the auction at which you really want to bid. You do not have to buy anything or bid for anything and can simply go to find out what happens at property auctions. You’ll see how the auctioneer operates, how the bidding is conducted and what happens if you are the winning bidder.

3. Know your limits

You should be aware of how much you can afford to spend. Always set yourself a realistic budget and most importantly stick to it. It is very easy to let the atmosphere of the auction influence you into paying more than you want. By knowing your limits you will reduce the risk of paying over the odds for the property and regretting your purchase later.

4. Do your homework

Visit the property yourself, ask to see a copy of the “auction pack” and the contract and get a survey. Without these you are buying blind and it will be assumed that you know about all the legal issues, repairs that are necessary and possible structural defects. If later you find them, you cannot back out of the contract or renegotiate. You are legally committed to buying the property.

5. Talk to a solicitor before the auction takes place

A solicitor can ensure that you have asked the seller all the right questions about the property before making a commitment to spend thousands of pounds on it. While it is possible that a solicitor can raise queries after the auction, by then it is too late and you could be forced to buy a property with issues that cannot be resolved. If you know all the problems in advance, you can make an informed decision about your property and whether the price is really worth paying at the auction.

Following the above advice will help reduce the risk of making a purchase of a property at auction, you may later regret.