What is a Note of Interest?
Noting interest will come from the potential purchaser’s solicitor verbally informing the seller’s Estate Agent that their client may be interested in purchasing the property.
The idea behind “noting interest” is to avoid the property being sold to another party before their client has a chance to make an offer. There is no guarantee that the property won’t be sold, however, the Estate Agent will act on their client’s instructions as to whether or not they wish to go back to the party who has ‘noted interest’ and give them an opportunity to offer.
What happens when an Offer come in?
When an offer comes in, your Estate Agent will contact you. An offer to purchase the property can be verbal or in writing, however, the offer has no legal status unless it is submitted by a solicitor in writing.
Even if you are offered the full asking price, the seller is not obliged to accept. Your Estate Agent will be able to go back to the potential buyer’s solicitor and negotiate on your behalf.
It’s not all about the price and there may be other factors involved such as proposed entry date and any conditions attached to the offer. This is a vital time where communication is key between all parties.
What is a Closing Date?
A closing date is set when multiple interested parties intend offering on the same property.
Since your Estate Agent will have already kept you informed each time a potential buyer “notes interest”, then you will already know there is more than one interested party.
Your Estate Agent will go back to the purchaser’s solicitor and inform them that a Closing Date has been set. This means that everyone has to submit their offers by a certain time on a certain day as determined by the sellers Estate Agent.
Offer with conditions. What does this mean?
It is not uncommon for an Offer to be accepted by the seller subject to various conditions set by the purchaser’s solicitor.
Perhaps within the surveyor’s Home Report, it has been noted there is evidence of damp or some roof tiles missing. The intended purchaser may request a damp specialist report or roof inspection to be carried out for their peace of mind & lending purposes.
Another instance where there can be a condition attached is if the intended purchaser is not a “cash buyer” and requires a mortgage, however the Home Report is beyond 3 months old.
The lender will require that another survey is carried out at the expense of the seller in order to make it current. Once this has been done and the purchaser is content with the outcome, then their solicitor can delete the conditions with the offer now classed as a “clean” offer.
If however the buyer/lender is not satisfied with the findings and depending on how much it will cost to put right, the purchaser may look to renegotiate or in some circumstances, pull out of the process altogether.