When you have finally found your dream home we know that all you want to do is get the keys and move in! However, there is a lot of work involved with conveyancing whatever type of property you may be buying and it is of course crucial that the work is done thoroughly and properly to protect all involved. We hope that this guide will help in explaining the stages of conveyancing so that you know what to expect.
Research shows that a Conveyancing transaction may take on average between 9 and 12 weeks from start to completion. However there are factors which may affect this.
The work involved is different if it is a sale or purchase of a property. We set out below the steps that we undertake at our firm and the way that we will endeavour to deal with your case but this is only a guide and is dependent upon also receiving the information that we need to complete these steps within the timescales.
SALE OF A PROPERTY
STAGE 1: Week 1
The first stage is for us to get basic information from prospective clients and verify a clients’ identification. This is usually done by requesting sight of various identity documents and also doing an electronic search.
We will send standard protocol forms to the sellers to complete and also ask them to bring in any deeds or relevant documents relating to the property (such as planning permissions/certificates and warranties).
We should receive notification from the nominated estate agent of all parties to the transaction including details of the buyers’ solicitors so that we can make contact with them to confirm that they are acting.
STAGE 2: Week 2
Subject to receiving all of the above information from the clients, we then consider the title and draft a contract for the sale and send this with the title documents to the buyers’ solicitors
If there is a mortgage on the property we contact the mortgage company and enquire how much is owed and check this against the sale price to make sure there is enough to pay off the mortgage (which we are required to do).
STAGE 3: Weeks 3- 7
Once we have sent everything to the buyer’s solicitors they will review the information along with the results of their searches and raise enquiries with us. We will ask the seller to assist us answering these and will respond as soon as possible.
We hope the buyers approve the contract for the sale and if so, we ask any sellers to sign this in readiness for exchanging contracts. We will often hold the signed contract on file until the purchasers’ solicitors are ready to exchange.
STAGE 4: Weeks 6-7
Once the above stages have been completed, we would hope to have agreed a completion date with a seller and any other parties’ Solicitors in the chain. We can exchange contracts with the other parties solicitors. Completion can be the same date as exchange but often it’s a date in the future usually one or two weeks to enable parties to make arrangements such as for removals.
We strongly advise that removals are not booked or time taken off work until contracts have been exchanged. Until exchange of contracts, the completion date can change and many removers charge cancellation or re-arrangement fees.
STAGE 5: Weeks 8-12- Completion!
On the completion date we await receipt of the monies from the buyer’s solicitors upon receipt of which we pay off any mortgage (if applicable) our fees and send the seller the balance. The contract usually states that the money should arrive by 1pm when the seller should hand over the keys to a buyer (although in practice this can sometimes be later).
PURCHASE OF A PROPERTY
STAGE 1: Week 1
The first stage is for us to get basic information from prospective clients and verify their identity by having sight of various identification documents and an electronic search.
We also need to ascertain the source of funds in terms of where the monies for the purchase are coming from. This means we need an explanation and documentary evidence of where they came from in terms of evidence not only of where the money is held now but also how this money came to be there (for example was it from the sale of a property, inheritance or savings). We use an electronic system called Armalytix to assist us with this task which can be quite complicated and we advise that the process is started as soon as possible so that any issues are identified at an early stage.
We also advise a buyer we do the usual searches and the standard searches are;
- A local search. This is made with the local authority. It gives information about any plans to build roads near bye, planning matters etc
- A water and drainage search. These give details about the water supply & sewage.
- An Environmental Search. This examines flood risks and contaminated land issues.
- A Chancel liability search. This identifies if there is a liability to pay repairs to the local Church. It is possible and stems from a law Centuries old.
We undertake an evaluation of whether STAMP DUTY LAND TAX for properties in England or LAND TRANSACTION TAX for properties in Wales is due and calculate how much this is likely to be.
STAGE 2: Weeks 2-4
The seller’s solicitor will send us a draft sale contract for the property together with a copy of the official Land registry title and certain standard forms containing information about the property. We will review the title and make any appropriate enquiries of the seller’s solicitors.
We would hope to receive the results of searches during this period and will review these and ask any further enquiries of the seller’s solicitors.
If a buyer is getting a mortgage we would hope to receive a mortgage offer which we will review and report to a buyer the terms and conditions of this. This will usually also include a survey report which we may need to raise enquiries about.
We advise buyers that the standard contract terms used in house purchases do not put the seller under any obligation to tell them about the state of repair that the house is in. Instead, it is up to the buyer to inspect the property and to arrange professional inspections of the property and its facilities. Therefore, we always advise that buyers carry out a structural survey before exchange of contracts.
STAGE 3: Weeks 5-7
We will report to any buyers on the title, documentation received from the sellers Solicitors and the result of searches.
We will ask any buyers to sign the contract and for 10% of the purchase price as a deposit (if the buyers are selling at the same time as buying it is possible to use the deposit received on a sale which will be 10% of the sale price) and sign the mortgage.
Once ready we will then exchange contracts with the seller, creating a binding agreement between the buyer and the seller. At this point, the completion date will be fixed. This is a crucial stage as it makes the matter legally binding. It is very important to know that from exchange of contracts a buyer becomes responsible to insure the property and any mortgage providers will insist this is done.
We strongly advise that removals are not booked or time taken off work until contracts have been exchanged. Until exchange of contracts, the completion date can change and many removers charge cancellation or re-arrangement fees.
STAGE 4: Weeks 8 – 12
Following the exchange of contracts, we will ask a buyer for any extra money required to complete the purchase (this will include Land registry fees, Stamp Duty Land Tax and our fees) and we will ask any applicable mortgage company to send us the funds required for completion.
On the completion date we will send the monies to the seller’s Solicitors as soon as it is all available in our account. The contract usually provides the money should arrive by 1pm when the seller should hand over the keys to a buyer.
STAGE 5: Week 13
Following completion, we will complete the Stamp Duty Land Tax Return (or Land Transaction tax in Wales) and pay any tax that is due. We will apply to register the buyer’s as proprietors of the property to HM Land Registry. This may take several weeks or months to be completed by HM Land Registry. Upon completion of this we will send buyers a certificate recording their ownership.
