What is conveyancing exactly and why is it important?
The property conveyancing process is defined as the legal transfer of ownership between the seller and buyer. The conveyancing process starts once an offer has been accepted by the seller.
In what situation is conveyancing necessary and who is it most appropriate for?
First time buyers, homeowners moving house and property investors all require the services of a Conveyancing Solicitor or Licensed Conveyancer. Any person buying a property using mortgage funds or their own saved money should use a Solicitor to manage their property legals.
See also: Surveys: What They Look For
What are the steps to the process and how long does it usually take?
The property conveyancing process has the following steps.
1) Buyer makes an offer ‘subject to survey’—if the seller accepts
2) The buyer passes over their Conveyancer details to the Seller
3) Buyer arranges a Survey. The results of the survey may lead to renegotiation of the purcahse price. Some works may be done by the Seller. The buyer may decide to carry out work after completion. The buyers lender may hold monies back if works are substantial. The buyer may pull out
4) Buyers Solicitor confirms instructions setting out the terms od purchase.
5) Sellers Solicitor sends contract pack to Buyers Solicitor
6) Buyers solicitor checks contracts pack and raises pre contract enquiries.
7) Searches are carried out to highlight any issues such as new roads being built within a certain distance of the property.
8) Buyers Solicitor requires copy of the mortgage offer.
9) Buyers Solicitors reviews the Sellers response to enquiries
10) Buyer arranges for deposit to be paid to the Solicitor ready for exchange of contracts.
11) Seller and Buyer agree exchange date and Buyer must provide evidence that they have building insurance in place on exchange of contracts.
12) Exchange date agree where upon Buyer is then legally committed to complete
13) Buyers Solicitors sends a draft transfer deed and completion froms to the sellers solicitor
14) Sellers Solicitor reviews, agreement is made and now requires the buyer to sign the agreed document. Signed agreement sent to Seller s solicitor for the seller to sign.
15) Completion statement prepared by Buyers Solicitor and contacts Mortgage lender for the release of funds to match with the proposed exchange date.
16) Buyer and seller to agree completion date.
17) Move to exchange of contracts.
18) On Completion Buyers Solicitor sends funds to Sellers Solicitor
19) Sellers solicitor on receipt of funds releases keys.
20) Buyers Solicitor sends applicable Stamp Duty to HMRC
21) Buyers Solicitor registers the property with Land Registry
The property conveyancing process can be as short as 2 weeks if the property is not in a chain. If the property is in a chain then all parties are restricted and it can take 3-5 months. It can take longer if someone in the chain has a buyer that has pulled out and they need to find a replacement.
See also: New Build Homes: Pros and Cons
Are there usually any hidden conveyancing fees, if so what would they usually consist of?
Solicitors costs do vary which is why you should from the outset get a fixed fee conveyancing quote for your move or remortgage. Schedule a call to discuss your conveyancing quote.
What is a ‘conveyancing chain’?
If you are buying a property say from a Developer then no chain exists. If your are buying a property where the Seller is also buying a property then you are in a chain
What’s the difference between the terms ‘exchange’ and ‘completion’?
Exchange of contracts is where you have to legally move to completion and the Seller cannot back out nor can the Buyer. Completion is where the Seller no longer owns the property and the title has been transferred to the buyer
Our thanks to We Help You Too Ltd for assisting us with this article. We Help You Too Ltd assist their client by matching up homebuyers and reputable conveyancers across the UK. Their website provides search and price comparison features—perfect for for house-hunters! They also ensure there is a high level of security; allowing clients and easy transitional process. To find out more about their services, visit their website: homebuyerconveyancing.com
If you have enjoyed reading this article on the property conveyancing process, click here to read more on Celebrity Angels about conveyancing for first-time buyers, home owners and investors.