What are the stages of the conveyancing process?
BuyingConveyancingSelling
Conveyancing is the legal process of transferring property ownership from one person to another and is the most crucial part when buying or selling a house.
While the conveyancing process may seem daunting, understanding the key stages can help you navigate the process with confidence. In this article we take a detailed look at the main stages of the conveyancing process.
Instruction and Appointment of a Conveyancer
The first step in the conveyancing process is choosing a conveyancer (sometime referred to as a solicitor). Once chosen, you will need to formally instruct them to act on your behalf. The conveyancer’s role includes handling all legal aspects of the property transaction. At this stage, the conveyancer will provide a detailed quote outlining their fees and any additional costs that might arise.
Pre-Contract Stage
For buyers, this stage involves several critical activities:
- Verification of Identity: The conveyancer will conduct identity checks as part of the anti-money laundering regulations.
- Property Searches: The conveyancer will perform various searches, including local authority searches, environmental searches, and water and drainage searches, to uncover any potential issues affecting the property.
For sellers, the conveyancer prepares a draft contract, which includes the terms of the sale. Once complete, the buyer’s conveyancer reviews the draft and negotiates any necessary amendments.
Mortgage and Survey Arrangements
If you are purchasing with a mortgage, your mortgage adviser should secure a mortgage offer from a lender (this is an actual offer as opposed to the mortgage in principle). Additionally, now is the time for you to arrange for a survey of the property to identify any structural or condition issues or necessary repairs. There are different types of surveys, such as a basic valuation, homebuyer’s report, or full structural survey, depending on the buyer’s needs and concerns. Find out more about the types of survey.
Searches and Enquiries
Conducting Searches
As the buyer, your conveyancer performs several searches to uncover potential problems with the property. Common searches include local authority, environmental, drainage, and water searches, and based on the findings from these searches and the initial contract, your conveyancer should raise any necessary enquiries with the seller’s conveyancer to clarify or resolve any issues.
Exchanging Contracts
Once both parties are satisfied with the contract terms and all searches and surveys are complete, the conveyancers will proceed to exchange contracts. At this point, the contract and searches will be sent to you to review and, if you are happy, you will need to sign the paperwork and return it to your conveyancer. Once the conveyancer has your signed copy of the contract, the transaction becomes legally binding, and a deposit (usually 10% of the purchase price) is paid by you. A completion date (the date you pick up the keys) is then typically agreed upon during this stage.
Final Preparations for Completion
Between exchange and completion, several tasks are typically carried out:
- Final Checks: Your conveyancer will carry out final searches and ensure the mortgage funds are in place.
- Transfer Deed: The seller signs the transfer deed, which will be sent to your conveyancer.
- Statement of Account: You will receive a completion statement from your conveyancer, detailing all the costs involved, including remaining deposit, legal fees, and stamp duty.
Completion Day
On the agreed completion date, your conveyancer transfers the remaining funds to the seller’s conveyancer. Once the funds are received, the keys are handed over to you, and you can take possession of the property. The conveyancers also ensure the legal transfer is completed, and the your name is registered with the Land Registry as the new owner of the property.
Post-Completion
After completion, the conveyancer’s work continues:
- Stamp Duty Payment: Your conveyancer will pay any stamp duty land tax due on the property.
- Registration: The conveyancer will submit the necessary documents to the Land Registry to officially register you as the new owner.
- Deeds and Documents: Once registration is complete, you will receive the title deeds and other relevant documents, although many of these are now held electronically.
Conclusion
Conveyancing includes several processes that require careful attention to detail and adherence to legal requirements. From appointing a conveyancer to post-completion tasks, each stage plays a vital role in ensuring a smooth and successful property transaction. By understanding these stages, buyers and sellers can better prepare themselves and work effectively with their conveyancers to achieve their goals.
