The Heads of Terms is the draft contract the solicitor draws up at the start of the legal process when selling your property. It contains the most important elements – but not all of the fine detail. There are various items of information you need to supply to your solicitor and to the buyer’s solicitor in order that this process can begin. These are:
Recording Details Required By Solicitors
If you do not have access to a computer or typewriter, write the following details in black ink and use block capitals to prevent any misinterpretation when they are read by your buyer and by each other’s solicitor. At the top of the page write
‘Heads of Terms Details (Subject to Contract)’ then record the data in the order they appear below, using the underlined heading for each element:
The Vendor
Write your full name including your title, for example, ‘MR JOHN MICHAEL SMITH’. If there is a joint-owner or
co-owners enter their full names to the right-hand side on the same line.
Vendor’s Address
Directly underneath your name enter your correspondence address which may or may not be the same as the address of the property being sold. Be certain to include your post-code as this will ensure the fastest possible postal delivery when letters and other documents are sent to you. Repeat the same process, placing the relevant correspondence address under the joint-owner or any co-owners’ names.
Vendor’s Contact Details
Following the same column-line downward enter all available contact telephone numbers, facsimile number and any e-mail address under each name and address. If you record different telephone numbers under this heading be certain to explain any that are only available at certain times, for example,
‘only during the day’ or
‘only after 6pm’.
Point Of Contact
If there are two or more owners of the property it is helpful for one to be identified as the
‘point of contact’, that is, the person with whom the solicitor will ordinarily liaise, send information and ask questions of. This will greatly speed up the process but there must be an agreement between the owners for this to happen, particularly if they are unrelated or live in different locations. Where an agreement has been reached enter,
‘It is agreed between the owners that all communications regarding the sale of our property should be addressed to (enter the appropriate name)’.
The Purchaser
Record the name of the purchaser in the same manner as you did for ‘THE VENDOR’. Be certain to obtain the full name and check that the spelling of it is accurate. Ask about any joint-purchaser or co-buyers and enter their names to the right-hand side if appropriate.
Purchaser’s Address
Directly underneath the name(s) enter the home address(es) of the purchaser(s) together with the post-code. The address(es) should be the
registered location(s) of the buyer(s) and not merely a place of employment or somewhere they collect mail from.
Purchaser’s Contact Details
Under each name and address write the telephone number, facsimile number and any e-mail address.
The Property Being Sold (Subject To Contract)
Enter the full address of the property and the post-code.
Agreed Sale Price (Subject To Contract)
Record the price agreed between you and the buyer in both numbers and words, for example,
‘£100,000 (one hundred thousand pounds sterling)
Inclusive Of ...
Enter here the fixtures, fittings, appliances, equipment and/or furnishings that you are providing inclusive within the price of the property and which have been agreed with the buyer. If specific appliances are being left make sure to list them by naming the manufacturer, model and design
number, or some other easily identifiable description. If only some carpets are being left, distinguish them by recording the appropriate room, for example
‘blue patterned carpet in the living room’. Careful and exact descriptions will help to prevent any potential conflicts or misunderstandings arising later on.
After you have listed all inclusive elements, write directly underneath:
‘All items listed are being provided as seen and no warranty or guarantee of operation or condition of any fitting, fixture, installation, system, appliance, equipment or item of furnishing will be given by the vendor. It is advised that the buyer undertakes to have any items professionally tested at their own expense as appropriate before completing the purchase.’