In this comprehensive guide, we will explore the intricacies of the conveyancing process, providing you with a clear roadmap. This legal procedure transfers property ownership from one party to another in the UK. If you’re in the process of buying or selling a property, understanding the steps involved in conveyancing is crucial. This guide aims to simplify the conveyancing process for you.
Step 1: Instructing a Conveyancing Solicitor
Before the process begins, it might be beneficial for both the buyer and seller to familiarise themselves with the market, assess their budget, and identify their requirements. For buyers, this could involve reaching out to a mortgage broker to secure an agreement in principle from a mortgage lender. On the other hand, sellers might want to consider having their property valued.
The conveyancing process commences when you instruct a solicitor or licensed conveyancer to manage the transaction. Both buyers and sellers will require separate legal representation. Once instructed, your conveyancer will send you a client questionnaire and a care letter outlining their services and fees.
Step 2: Drafting Contracts and Raising Enquiries
As a buyer, your conveyancer will review the draft contract pack provided by the seller’s conveyancer. They will raise any necessary enquiries and conduct property searches, such as local authority searches, environmental searches, and water and drainage searches. These searches will provide vital information about the property and its surroundings.
As part of the draft contract, the seller’s conveyancer will typically send a Property Information Form completed by the seller. This form provides crucial details about the property, including boundaries, disputes, and any alterations made. Additionally, a Fixtures and Fittings Form should be completed by the seller. It outlines what will be included in the sale of the property, such as carpets, curtains, or kitchen appliances.
Throughout the process, the conveyancers of both parties will communicate and negotiate the terms of the contract, raise and answer queries, and ensure that all legal requirements are met. The buyer’s conveyancer will meticulously examine the search results and the information provided by the seller’s conveyancer to identify any potential issues with the property.
What Happens if Your House or Flat is Leasehold:
If the property is leasehold, additional steps may be involved. These could include obtaining information from the freeholder or management company and understanding the terms of the lease.
Please visit and search our FAQs if you wish to learn about the differences between a leasehold and freehold property.
Step 3: Arranging a property survey
Although not legally required, arranging a property survey is advisable. This survey can reveal significant issues and may suggest further inquiries. The type of survey you choose will depend on your unique situation. The survey’s findings might lead you to proceed with the purchase, renegotiate the price, or withdraw. Therefore, it’s beneficial to schedule your property assessment early in the conveyancing process.
After the survey, your conveyancing solicitor can guide you on the next steps. If there are problems that need fixing before purchase or matters that require further investigation, they can communicate with the seller’s solicitor. If the survey uncovers major issues, you might want to renegotiate the price. Your conveyancing solicitor will ensure everything is agreed upon in writing.
Step 4: Mortgage
If you’re a buyer using a mortgage to purchase the property, you’ll need a mortgage offer from your lender. Your conveyancer will work with the lender, review the mortgage offer, and ensure all conditions are met before completion.
Step 6: Exchange of Contracts
After all pre-contract checks are completed and the terms are agreed upon, the buyer and seller will exchange signed contracts. This exchange makes the transaction legally binding and sets a completion date.
At the exchange of contracts, the buyer typically pays a deposit to the seller’s solicitor. This is usually 10% of the purchase price, but it can often be less. At this stage, the buyer also needs to ensure they have buildings insurance in place, as they are responsible for the property from this point onwards.
Step 7: Completion
On the agreed completion date, the remaining balance is transferred from the buyer’s solicitor to the seller’s solicitor. Once the funds have been received, the seller’s conveyancer will confirm receipt and authorise the release of the keys to the buyer.
Step 8: Post-Completion
After completion, the buyer’s conveyancer will pay any outstanding Stamp Duty Land Tax (SDLT) on behalf of the buyer and handle the registration of the property with the Land Registry. The Land Registry will then update its records to reflect the change in ownership.
Step 9: Finalising the Process
Once the post-completion tasks are completed, your conveyancer will provide you with a comprehensive report detailing all aspects of the transaction and will send you any remaining documentation, such as the title deeds.
Conclusion
The conveyancing process is a detailed and legally binding procedure that ensures a smooth transfer of property ownership. By hiring skilled and trustworthy conveyancers, both buyers and sellers can confidently navigate the process, knowing that each stage protects their interests. From the first instruction to the final contract exchange and tasks after completion, each step is crucial. These steps safeguard your investment and ensure a successful property transaction.
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