Selling a home
Transferring ownership (conveyancing)
After you’ve accepted an offer, you’re responsible for drawing up a legal contract to transfer ownership.
The contract needs to include details about:
- the sale price
- the property boundaries
- which fixtures and fittings (like carpets and kitchen units) are included
- any legal restrictions or rights, like public footpaths or rules about using the property
- any planning restrictions
- services to the property, like drainage and gas
- when the sale will complete
If you’ve hired a solicitor or conveyancer, they will:
- draft the initial contract
- answer questions from the buyer’s solicitor or conveyancer (with your help)
- negotiate the details of the contract if necessary
Exchanging contracts
When both you and the buyer are happy with the contract, you’ll both sign final copies and send them to each other.
The agreement to sell and buy is then legally binding. Usually, neither of you can pull out at this point without paying compensation.
Completion
Once you exchange contracts and deal with any remaining checks the buyer has asked for, their solicitor or conveyancer will transfer the money.
Your solicitor or conveyancer will then pay off:
- the mortgage
- any secured debts (if you have them)
- stamp duty (if you’re buying another property)
- any outstanding estate agent fees (if you’ve used one)
- services charges (if relevant)
- their fee as your legal representative
The remaining balance will then be sent to your account. You’ll also need to send the legal documents needed to transfer ownership to the buyer.
You must leave the property in the state agreed in the contract when you move out.
Citizens Advice has more advice about selling a home.
Capital Gains Tax
You do not pay Capital Gains Tax when you sell (or ‘dispose of’) your home if all of the following apply:
- you’ve lived in it as your main home for all the time you’ve owned it
- you have not let part of it out or used part of it for business only
- the grounds, including the buildings, are smaller than 5,000 square metres (just over an acre)
This is because you automatically get a tax relief called Private Residence Relief. You do not need to do anything.
If you do not meet all these criteria you may have to pay some Capital Gains Tax.