UK Property Purchase Process

Locking in a property of interest and entering the negotiation process

After identifying a preferred project and submitting an offer, the buyer and seller negotiate the price repeatedly with the developer until a final transaction price is agreed upon. Next, the buyer needs to pay a deposit to reserve their preferred unit type (the amount varies depending on the project). After the deposit is paid, both parties' lawyers can intervene – informing the lawyers of the purchase intention to facilitate subsequent procedures.

Signing a purchase contract

The buyer's and seller's lawyers will begin drafting the property purchase agreement and handling related legal documents. During this period, both lawyers will investigate and verify the legality and legitimacy of the buyer's funds. Within 21-28 days of the deposit payment, both parties will sign the property agreement and exchange contracts. Simultaneously, in addition to the deposit already paid, the buyer must pay the seller 5%-15% of the property price (depending on the project) as a down payment.

Loan application and payment (if any)

The bank will send a property appraiser to produce a detailed report summarizing the building structure, current condition, and safety rating of the adjacent property. After the appraisal, the buyer's lawyer will proceed to the next step of investigating the legal ownership of the property, and the bank will then formally process the relevant loan procedures.