When buying a property you need to understand the conveyancing process to make it as smooth as possible. This guide explains the conveyancing process, the roles of the key people, the steps involved and the potential pitfalls.
Whether you’re using conveyancing solicitors, licensed conveyancers, or an online conveyancing firm, knowing the process can make your property purchase easier and quicker.
What is Conveyancing?
Conveyancing is the legal and administrative process of transferring the ownership of a property from the seller to the buyer. This involves the review of documents, resolving any legal issues and registering the new owner with the land registry.
Whether leasehold or freehold the conveyancing process explained protects the buyer’s ownership. Professional help from licensed conveyancers or conveyancing solicitors deals with the complex legal bits of the property transaction.
Stages of the Conveyancing Process
The conveyancing process can be broken down into three stages:
- Before Exchange of Contracts
- Between Exchange and Completion
- After Completion
1. Before Exchange of Contracts
This first phase involves preparation and property searches to ensure all legal requirements are met.
Instruction of a Conveyancer
The buyer chooses a conveyancing solicitor, licensed conveyancer or online conveyancing firm to manage the process. Online reviews can help you find a reputable service. If you’re going DIY conveyancing you need to understand property law.
Preliminary Checks
The conveyancer checks the buyer’s identity, confirms financing (mortgage application or proof of funds for a cash buyer) and checks the legal requirements.
Searches
Searches look for potential risks or restrictions, including:
- Local authority searches: Check for proposed developments or restrictive covenants.
- Environmental searches: Check for flooding or contamination.
- Water and drainage searches: Check for drainage and utilities.
Draft Contract Review
The seller’s solicitor prepares a draft contract which the buyer’s conveyancer reviews. Key points include the purchase price, inclusions and any legal restrictions.
Property Survey
The buyer gets a property survey to identify structural issues or potential problems, especially for older properties or leasehold conveyancing.
Finalising Mortgage Arrangements
The mortgage lender does a valuation to confirm the property’s purchase price. The buyer’s solicitor checks the mortgage terms match the property sale.
2. Between Exchange and Completion
This stage is where the agreement is finalised and the completion date is prepared for.
Exchange of Contracts
Both buyer and seller sign the contracts which are then exchanged between solicitors. This stage:
- Makes the agreement legally binding.
- Requires the buyer to pay a deposit (5-10% of the purchase price).
- Sets the completion date.
Buildings Insurance
The buyer must get buildings insurance from the date of exchange. This is often a condition of the mortgage.
Pre-Completion Checks
The buyer’s conveyancer checks:
- Funds are available including stamp duty land tax (SDLT).
- Completes a completion statement showing all payments.
- Verifies the seller can transfer the property title.
3. After Completion
Once the funds have been transferred the property transaction is complete and ownership has changed hands.
Transfer of Ownership
The seller’s conveyancer confirms the funds have been received. The buyer gets the keys and ownership is updated at the land registry.
Post-Completion Tasks
Buyer’s solicitor’s to do:
- Paying SDLT on behalf of the buyer.
- Registering the buyer with the land registry, including any land registry fees.
- Checking the legal aspects of the transaction.
For leasehold properties additional steps may be required to notify the freeholder or managing agent.
Parties Involved in the Conveyancing Process
Several people are involved in the property transaction:
- Buyer and seller: Both buyer and seller must exchange contracts and meet deadlines.
- Legal Professional: Conveyancing solicitors like Graham Evans and Partners help with the legal process
- Mortgage lender: Provides the finance and may require additional checks.
- Local authority: Supplies the local authority searches.
- Other parties: Estate agents, surveyors, insurers etc.
Conveyancing Challenges
The conveyancing process can hit delays or problems:
- Slow responses from local authority or third parties.
- Disagreement over the draft contract or terms of sale.
- Mortgage lender finance issues.
- Legal issues, such as restrictive covenants or missing legal documents.
Top Tips for a Smooth Conveyancing Experience
- Research Conveyancing Services: Compare online conveyancing firms and traditional solicitors. Look for transparent pricing for conveyancing fees.
- Be proactive: Respond to requests for documents or clarification quickly.
- Budget for costs: Include fees like SDLT, indemnity insurance and solicitor’s fees.
- Know the legal restrictions: Get professionals to sort out issues like restrictive covenants or unregistered land.
Online Conveyancing Firms
Online conveyancing is a convenient option to traditional methods. They offer digital communication and often reduce the timescales and conveyancing costs. But complex transactions like leasehold properties may still require a face to face meeting.
Summary
Understanding how the conveyancing system works when buying a property helps prospective buyers navigate the legal process confidently. From reviewing legal documents and conducting property searches to exchanging contracts and registering the property title, every step is crucial.
Engaging experienced licensed conveyancers or conveyancing solicitors ensures that both the buyer and seller achieve a seamless property transaction. Whether you opt for traditional services or explore online conveyancing, staying informed is the key to success.
