Buying or selling a property in can be an exciting but also daunting process. There are many steps involved and one of the most important is the conveyancing process. This is the legal process of transferring ownership of a property from one person to another. In this guide, we will take you through the conveyancing process in England and Wales, step by step, to help you understand what to expect and how to navigate this important stage of buying or selling a property.
Please note this is a general overview of the conveyancing process which may differ depending on the type of property involved. For example, the process differs slightly for new build conveyancing and auction property conveyancing.
What is Conveyancing?
Conveyancing is the legal process of transferring ownership of a property from one person to another. It involves a series of steps that must be completed before the property can officially change hands. This process is usually carried out by a solicitor or licensed conveyancer, who acts on behalf of the buyer or seller to ensure that all legal requirements are met.
In addition to transferring ownership, conveyancing also involves other important tasks such as conducting property searches, dealing with the Land Registry, and managing the funds for the property transaction. It’s a complex process that requires a thorough understanding of property law, a meticulous attention to detail and the ability to manage all parties involved ranging from buyers and sellers, mortgage providers, estate agents and surveyors to name but a few.
The Importance of Conveyancing
Conveyancing is not just a legal requirement, it’s crucial for ensuring that the property transaction goes smoothly. It helps to protect the interests of both the buyer and the seller and it ensures that all legal obligations are met. Without proper conveyancing, you could end up facing legal issues or financial losses.
The Role of a Conveyancer
A conveyancer is a legal professional who specialises in property law. Their role is to handle all the legal aspects of the property transaction, from drafting the contract to registering the new ownership with the Land Registry. They also provide legal advice and guidance to their clients throughout the process.
Step 1: Finding a Conveyancer
The first step in the conveyancing process is to find a conveyancer to represent you. You can either use a solicitor or a licensed conveyancer, but it is important to choose someone who is experienced and reputable. Bretherton Law is an excellent choice but you don’t have to take our word for it, just read our reviews.
Choosing the Right Conveyancer
Choosing the right conveyancer is crucial for a successful property transaction. You should look for a conveyancer who has a good track record, is responsive and communicative, and has a clear fee structure. It’s also a good idea to choose a conveyancer who specialises in the type of property you are buying or selling.
At Bretherton Law we have ample experience with the following.
Freehold Conveyancing
Auction Conveyancing
Using a Solicitor or a Licensed Conveyancer
You can choose to use either a solicitor or a licensed conveyancer for your property transaction. Both are qualified to handle the conveyancing process but there are some differences between them. Solicitors are qualified lawyers who can handle all aspects of law, while licensed conveyancers are specialists in property law.
Step 2: Getting a Quote
Once you have found a conveyancer, you will need to get a conveyancing quote for their services. Conveyancing fees can vary, so it is important to get a few quotes and compare them before making a decision.
Understanding the Conveyancing Quote
When you receive a quote from a conveyancer, it’s important to understand what it includes. Some conveyancers may offer fixed fee conveyancing, while others may charge on an hourly basis. The conveyancing quote should also include any additional costs, such as search fees and Land Registry fees.
Comparing Quotes
Before you choose a conveyancer, it’s a good idea to get quotes from a few different conveyancers and compare them. This will help you to find the best value for money. However, remember that the cheapest quote may not always be the best option. It’s important to consider the conveyancer’s reputation and level of service. Buying and selling property can be a stressful experience and without good, solid legal support from a communicative and accessible solicitor or conveyancer who has the time and expertise to dedicate to your sale or purchase, it’s easy for transactions to fail. Beware of cheap conveyancing firms who use cheap inexperienced staff who are tasked with an excessive workload. Understandably this approach to conveyancing results in delays and failed transactions.
You also need to ensure that the quotes are in fact comparable and the breakdown of fees includes all fees payable including legal fees, disbursements and stamp duty.
Step 3: Instructing the Conveyancer
Once you have chosen a conveyancer and agreed on the cost of conveyancing, you will need to instruct them to act on your behalf.
Signing the Contract
When you instruct a conveyancer, you will need to sign a contract with them. This contract will outline the services that the conveyancer will provide, the cost of conveyancing and the terms and conditions of the service. Make sure you read the contract carefully before signing it.
Providing Information
After you have signed the contract, you will need to provide the conveyancer with all the necessary information for the property transaction. This may include the details of the property, your personal details and any other relevant information.
Step 4: The Draft Contract
Preparing the Draft Contract
The seller’s conveyancer will prepare the draft contract, which will include all the details of the property transaction. This includes the property details, the agreed price, the completion date and any other terms and conditions. The draft contract is a crucial document in the conveyancing process, as it forms the basis of the legal agreement between the buyer and the seller.
Reviewing the Draft Contract
Once the draft contract has been prepared, it will be sent to the buyer’s conveyancer for review. The buyer’s conveyancer will check the contract to ensure that all the details are correct and that there are no legal issues. They may also negotiate with the seller’s conveyancer to make any necessary changes to the contract.
Step 5: Conveyancing Searches
Once the draft contract has been reviewed and any necessary changes have been made, the conveyancer will carry out conveyancing searches on the property. These searches will include a local authority search, which will reveal any planning or building regulations that may affect the property, and an environmental search, which will highlight any potential environmental issues in the area. It’s an important to note that the conveyancing searches can delay the conveyancing process but they are a crucially important part of the conveyancing process.
Step 6: Enquiries
Making Enquiries
The buyer’s conveyancer will make a list of enquiries based on the information obtained from the searches and the draft contract. These enquiries may cover a wide range of issues from the boundaries of the property to any disputes with neighbours. The seller’s conveyancer is required to answer these enquiries honestly and accurately based on the information provided by their client.
Responding to Enquiries
The seller’s conveyancer will respond to the enquiries made by the buyer’s conveyancer. They will provide answers to the questions and provide any necessary documentation. If there are any issues that cannot be resolved, the buyer and seller may need to negotiate to find a solution.
Step 7: Mortgage Offer
Formally Applying for a Mortgage
If the buyer is obtaining a mortgage to purchase the property at this stage they will only have an agreement in principal. They will need to formally apply for a mortgage offer. The mortgage lender will carry out a valuation of the property to ensure it is worth the amount being borrowed. Once the mortgage offer has been received the buyer’s conveyancer will review it and advise the buyer on the terms and conditions of the mortgage.
Receiving and Reviewing the Mortgage Offer
Once the mortgage offer has been received the buyer’s conveyancer will review it to ensure that the terms and conditions are acceptable. They will also check that the mortgage offer matches the details of the property transaction. If there are any issues, the conveyancer will liaise with the lender to resolve them.
Step 8: Exchange of Contracts
Signing the Contract
Once the contract has been finalised, both the buyer and the seller will need to sign it. This is a crucial step in the conveyancing process as it signifies that both parties agree to the terms of the property transaction and are committed to completing it.
Exchanging Contracts
After the contracts have been signed, they will be exchanged between the buyer’s and seller’s conveyancers. This is the point at which the property transaction becomes legally binding. If either party pulls out after this point, they may be liable for breach of contract.
Step 9: Completion
Completion is the final step in the conveyancing process. It is the point at which the property ownership is transferred from the seller to the buyer. During completion, the buyer’s conveyancer will transfer the remaining funds to the seller’s conveyancer, and the seller will hand over the keys to the property.
Completion usually takes place a few weeks after the exchange of contracts but sometimes exchange and completion can happen on the same day. The exact date is agreed upon by both parties and it is typically done through a process called “completion day.” On completion day, the buyer’s conveyancer will ensure that all necessary documents are in place, including the mortgage funds if applicable.
Once the funds have been transferred, the buyer’s conveyancer will pay any Stamp Duty and register the property with the Land Registry at which point the buyer becomes the legal owner of the property. The seller’s conveyancer will also ensure that any outstanding mortgage or loans on the property are paid off.
It is important to note that completion is a critical stage in the conveyancing process, as it marks the official transfer of ownership. It is essential for both the buyer and seller to fulfil their obligations to avoid any breach of contract.
