The conveyancing process for the majority of people looking to buy and sell a property is a bit of a grey area! In theory (although not recommended) an individual can undertake their own conveyancing, provided no mortgage is involved. However with a property purchase being the largest single purchase most of us will ever make, why leave anything to chance?
Conveyancing Process – In a Nutshell
The process is driven initially by the seller’s solicitor who will provide the draft contract and supporting documents to the buyer’s solicitors. From this point, it is then the role of the buyer’s solicitor to ensure that the buyer is protected throughout the conveyancing process and beyond. This involves making enquiries, undertaking searches and generally ensuring that the property being purchased is exactly what is expected.
As a property purchaser, it is also important to realise that as part of the conveyancing process the searches are essential but can be costly and time-consuming. The sooner your solicitor begins this part of the conveyancing process the better!
Where a mortgage is required, there is also a need to follow the processes dictated by the mortgage company. Do not overlook this as part of the conveyancing process. Mortgage companies will want to be sure that their lending is secure and this may well involve another layer of searches and complex enquiries about the property. Your conveyancing solicitor will liaise directly with the mortgage company and ensure funds are appropriately allocated.
Conveyancing Process – Signing
The actual part of conveyancing that involves transferring the property from the seller to the buyer happens as part of exchange and then completion. Exchange is the point at which a deposit is paid (typically 10%) and both parties become bound to go through with the transaction. Completion is then set at a future date for the remainder of the payment amount due and the property is transferred. This seeming delay in the conveyancing process is to allow the parties to prepare for the move, e.g. to book removal vans or to deal with financing issues. For this reason, it is possible to undertake a simultaneous exchange and completion, where the whole process of signing the contracts and transferring the property happens on the same day. This is likely to be a good option where the properties are vacant and where the finances are in place.
Avoiding Pitfalls with the Conveyancing Process
As with any legal process, there are pitfalls of which the buyer needs to be aware. Searches and their associated expenses need to take place, before any contractual agreement is entered into, which means that the buyer could incur a range of expenses, only to have the property taken away from them at the last minute if the searches produce adverse results e.g. historic flooding/new transport developments nearby.
Secondly, changes can take place between exchange and completion on both sides of the transaction, which can lead to difficulties in the final stage; be aware of this!
Finally, after the whole transaction is complete, don’t forget to deal with the matter of stamp duty and registering the transfer. Your solicitor will offer to do this for you, or you can do it yourself. Either way, make sure it is done.