After you have had your offer accepted, the process of purchasing a property begins from the legal perspective. There are multiple stages of buying a home that have taken place before reaching this point, not least the need to determine a budget and to ensure that there is suitable finance in place. Assuming that this has been done, it is now time to look at the formal stages of buying a home.
Stages of Buying a Home – The Basics
When the process of conveyancing is referred to, it means the formal, legal stages of buying a home. There is nothing more complex involved, so don’t be put off. The first part of the process is to decide on a solicitor or licensed conveyancer who is going to undertake your purchase. The estate agent may recommend someone and this may be your best possible option; however, this is not guaranteed and a sensible buyer should indeed ask around to make sure that they’re getting the best possible option and costs for their purchase. Following on from the formal instructions, the actual legal work begins!
Before you opt for an estate agent’s commended conveyancer, ask for details of the referral fee they are receiving for your work. This can be in the £100s. If the estate agent refuses to tell you, the solicitor is obliged to inform you what they have paid for your custom. This shows that you may be able to find similar conveyancing without paying a hefty referral fee.
Your lender (if you are relying on one) will be involved with the process from the outset and it is likely that your conveyancing professional will want all the information from the start, so as to make the process as swift as possible.
When buying a home, one of the initial stages is to determine the nature of the survey required and to engage with the appropriate professional. A lender will want a valuation done which is typically very basic. It is not a full survey and unless you pay to upgrade it, it should not be relied upon to inform you of any potential pitfalls of the property. This may be suitable for your particular property, or it may not. Scrimping on the survey could prove very costly and although it may lengthen the time taken during this stage of buying a home, it is not an area to be missed. A full survey may be appropriate where the property is older or has specialist needs.
Stages of Buying a Home – Expectations
The conveyancing process has changed over recent years with the onus of providing information moving from the buyer to the seller and back again. This is not to say that both parties may not provide or gather information but the onus is now very much firmly back on the purchaser. The gathering of information is often a time- consuming, yet vital stage of the property purchase. Many of the searches also have costs attached, so make sure you find out about these, to avoid having a nasty shock at the end of the process. Searches are requested by your conveyancer from the local authority or a private search company to determine there are no building developments, disputes or roadworks that may affect the value or useage of your proposed home. The searches will check whether the land has been subject to mining such as coal or tin, or whether it has been flooded in the past.
Exchange and completion then takes place at the point at which the parties wish to become legally bound to buy and sell the property. As a purchaser, you will be required to exchange and pay a deposit, which is normally 10%, but can be less. It is unlikely that you will receive any of this back if you then pull out of the purchase. At a time set in the future (maybe even just a few minutes later but most often two weeks apart), completion will take place and the whole amount will be transferred, with the property then being sold to you.
Final stages then involve the paying of stamp duty and the registration with the Land Registry. Don’t forget to instruct your solicitor or conveyancer to do this, if you’re not going to do it yourself. Miss this vital stage at your peril!