Selling Land and Buying a House - Timeframe

M

Maread

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Hi

Myself and my siblings have put some farm land on the market (which we own as tenants in common). We anticipate that it will sell soon. I intend to use my share of the sales proceeds to buy a house with my partner, ie to reduce the amount we need to borrow.

My question concerns the timeframe. When a sale is agreed and payment is made to the auctioneer, can he pay directly to us or does it have to go through a solicitor? Do we receive payment before the paperwork, CGT tax calculations etc are done or after? Realistically how long can we expect this process to take?

Thanks for any replies
 
"When a sale is agreed and payment is made to the auctioneer"

Payment is made to the solicitor - the auctioneer holds only the initial deposit.

"does it have to go through a solicitor? "

Yes.

"Do we receive payment before the paperwork"

Its a formal process and you won't receive any money until all the loose ends are drawn up or allowed for.

"CGT tax calculations etc are done or after?"

Given that the property is held as Tenants in Common , all of the owners will be liable for all of the CGT jointly and severally so if I was advising any of you, I'd advise that the CGT liability be (over) estimated and that that portion of the sale price be lodged to an interest bearing account until it was payable. You wouldn't believe the numbers of people who will forget ( and I'm being kind when I say that) their own liabilities and the impact of them not paying has on fellow owners.

The process takes as long as it takes. All my clients tell me that their transaction is sooooooo straight forward that ( a) I should probably not charge them at all its so easy and (b) that it will all be done and dusted in a couple of days.

It depends on who is buying, if they are serious ( lots of tyre kickers out there), if they have funds or access to them ( again a lot of people like the idea of buying but realistically have no money and zero chance of getting any) , if they have plans for the lands etc.,etc.

Best bet is if you have a few serious offers to go with the person who is ready , willing and able to proceed quickly and that may not be the highest offer.

mf



Realistically how long can we expect this process to take?
 
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