Buyers' Information
Step 1: Make an appointment with your bank and a mortgage broker to find out how much money you will be able to borrow. A mortgage broker will be able to source different options and multiples of income for you.
Step 2: Decide what type of property you like and where you would prefer to live. Try not to be too specific, your ideal house may be just around the corner.
Step 3: Register with Estate Agents, receive property details and arrange to view any properties that interest you. Be prepared to view lunchtimes/evenings or weekends if necessary.
Step 4: Having found your ideal home, you can make an offer for the property. Once your offer has been accepted it will be subject to a satisfactory survey report, final approval from your bank and a report from your Advocate. If you are not locally born you will also require a Housing Licence.
CONDITIONS OF SALE: Your Estate Agent will draw up a draft of the Conditions of Sale which will be forwarded to all parties concerned, including the respective Advocates. Title Deeds will be supplied to your Advocate.
SURVEY: Your bank will give a list of approved surveyors who will arrange access to the property through the Estate Agent handling the sale.
BANK: When your bank has received a copy of the survey report and is satisfied, it will issue a FACILITY letter formally offering you a mortgage for your home.
ADVOCATE: You may use whichever Advocate you wish. He/she will check on your behalf that the property you are buying is actually owned by the person selling it, that any rights of access are included in the Title Deeds, and that you are aware of any liabilities regarding the property.
LICENCE: If you are NOT locally born and are living here as an essential worker, you will be given a Tax on Real Property (TRP) guideline from the Housing Authority. The TRP applies in that you can only purchase a property with that Value or above. HOWEVER, if you choose to purchase a small property i.e. with only one bedroom or a second bedroom which is less than 10` x 7`, you may apply to the Housing Authority without having to consider the TRP. High earners will be given a higher TRP and may qualify under the three habitable rooms rule. If you require a Housing Licence then you will have to apply to the Housing Authority for a Licence to occupy the property you are buying. The Estate Agent you are dealing with will be able to assist with completion of the form. This then needs to be returned to the Housing Authority without delay.
Step 5: You will normally have between 10-15 working days before you are required to actually sign Conditions of Sale and place a Deposit. During this time the Survey will be carried out, your Advocates will do the required property searches and your finance will be approved. Also you will need to agree the date on which you will actually own the property, i.e. Completion Date. This must be a Tuesday or Thursday as these are the only days on which the Court sits. Generally this is a mutually convenient date and is often about 6-8 weeks after your offer is accepted.
Step 6: Once Survey, Finance, Licence and Property Matters (Property Searches) have been concluded, your Advocate will arrange an appointment to discuss all the implications of the Conditions of Sale, the Title report and also check that you have a Facility letter from your Bank. Now you are able to sign the Conditions of Sale and pay a Deposit, which is usually 10% of the purchase price. The Deposit money is normally held by the Estate Agent as stakeholder and any interest which accrues will be paid to you after Completion.
Step 7: Before Completion you need to contact Guernsey Electricity, States Water, Guernsey Gas and Cable & Wireless and notify them of the change of ownership. The Vendor will arrange final readings. You also need to arrange house insurance (usually arranged when obtaining finance).
Step 8: Attend Conveyance Court with your Advocate, receive the keys to your new home and MOVE IN!