What happens when a person decides to sell his present house and immediately move in to another? Read further to know more:
It is very common in residential conveyancing transactions that the client is selling one property and buying another. In such circumstances, it is possible that the sale and purchase transactions are linked to each other. i.e. the client cannot afford to buy a new house until he has sold the old one, neither can he sell his existing house until he has bought a new one. Here, the intention of the client is to move from one transaction to the other on the same day, using the money obtained from the sale of his other property towards payment for the property he is buying.
Sometimes it may happen that the client ends up with two or no properties. Such a situation is described as a ‘no home/two homes’ syndrome and is obviously undesirable. It is the duty of the conveyancers to ensure that such a situation does not arise. If he fails to achieve this and where instructed by the client, the solicitor is liable for prima facie negligence.
Thus, it goes without saying that the conveyancing solicitor is acting in a linked transaction; both steps relating to the buyer’s solicitor and the seller’s solicitor shall be taken simultaneously. While one set of steps are relevant to the sale of property, the other set of steps are necessary for the purchase of property.
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