The purchase or sale of your house will likely be one of the most important financial transactions that you make in your lifetime. It is important, therefore, that you have the benefit of reliable professional advice throughout the transaction. The most important thing to remember is not to sign anything until you have spoken to your legal adviser.

The first stage in any transaction involves negotiating the deal. If you are selling a property through a real estate agent then you will be notified of any offers which are received. Decide upon the lowest offer that you are prepared to accept and remember that often a buyer can be tempted to strike a deal with you if you are prepared to leave kitchen appliances, carpets, or curtains at the property.

Often as seller you will be asked to pay part of the buyer's legal fees and stamp duty on the transaction as well as paying your own costs. This can be expensive and the costs involved need to be carefully thought out. Your adviser can give an estimate of the likely legal expenses, which will be based on the recommended scale of fees published by the Bermuda Bar Council.

The second stage is the signing of the Sale Agreement. Often the real estate agent will draw up this document. It is important for both parties to have it reviewed by their legal advisers before signing. If you are a buyer then you should ensure at this stage that you have arranged any financing that you require.

The buyer will normally be expected to pay a 10 percent deposit when the Sale Agreement is signed and dated and at this point there is a binding contract.

This is not to be taken lightly since if either party renege on the contract they may find themselves being sued in court for damages and/or forced to complete the transaction.

The third stage involves the buyer's legal adviser researching the title deeds to the property to ensure that the seller owns what he has contracted to sell.

If it transpires that the seller cannot provide good title to the property, then the purchaser has the power to withdraw from the contract and have his deposit returned with accrued interest. The buyer will also have a search carried out with the planning department to ensure that no development has been carried out on the land without planning consent.

If the buyer is taking out a mortgage to fund the purchase and his legal adviser is also acting for the lender then the legal adviser will report to the lender that the property provides adequate security for the mortgage advance.

During this period the buyer's legal adviser will draw up the transfer deed, known as the Conveyance, and arrange for this document to be signed by the parties to the transaction. If the seller is leaving items at the property then it is advisable to have these transferred by a separate Bill of Sale.

Where the buyer is taking out a mortgage then a Mortgage Deed will also need to be drawn up.

The fourth stage is the day of completion of the transaction. Because the planning department takes 28 days to deal with the planning search, the completion date will usually be more than a month from the date of the Sale Agreement. The buyer's attorney will need to ensure that funds are available either from the buyer's own resources or from his lender to fund the transaction.

The buyer's legal adviser will expect to be in funds to cover not only the purchase price, less any deposit that has already been paid, but also his own fees, and the stamp duty on the Conveyance, Bill of Sale, and Mortgage Deed.

On the day of completion the buyer will either collect the keys from the real estate agent or from the seller at the property. If you are the seller, it is not advisable to release the keys until you are sure that your attorney has received the funds. If you do so and the monies are not available you may find yourself with an unwanted tenant on the land.

The buyer's legal adviser will disburse the purchase monies in accordance with the buyer's instructions and those of the seller. He may be asked to pay the real estate agent's commission and discharge any mortgage which the seller has on the land. It is also usual for any land tax and corporation tax to be apportioned between the seller and the buyer on completion and monies may need to be sent to the appropriate government departments to cover any arrears.

If you are a buyer remember that your newly acquired property may have an impact on any will that you have made. If this is the case or if you are without a will, then take this opportunity to ask your legal adviser to conduct a review of your financial affairs. Remember that `keeping your house in order' is not just about looking after your assets but thinking about to whom you would like them to pass in the future.

*** Attorney Martin Mitchell is a member of Appleby Spurling & Kempe's Property Department. Copies of Mr. Mitchell's columns can be obtained on the Appleby Spurling & Kempe website at www.ask.bm.

This column should not be used as a substitute for professional legal advice.

Before proceeding with any matters discussed here, persons are advised to consult with a lawyer.

BUSINESS BUC