Buying or selling property can be a very stressful experience, and it can be difficult to understand why the process seems to take a long time when you don’t know what is going on behind the scenes.

Conveyancing is the process of transferring legal title of a property from one owner to another. The two main stages in this process are the exchange of contracts and completion but there is a lot of work to be done before you get to that point.

Starting the process

Once the purchase price has been agreed, both the Buyer and Seller instruct their respective solicitors to begin the conveyancing process. When an Estate Agent is involved, it is their responsibility to ensure that each of the involved parties receives the details of the transaction. This information is contained in a Memorandum of Sale.

Next, the Seller’s solicitor will give the Seller some standard forms to complete to provide information about the property and its contents. It is very important that these are completed as fully and accurately as possible as this will give the Buyer a clearer idea of the property they are buying and reduce the need for further questioning at a later point.

The Seller’s solicitor is then responsible for drafting the Contract for the transaction. This is sent to the Buyer’s solicitor along with the completed forms mentioned above, the title documents for the property and any certificates relating to work done at the property. At this stage, it is really helpful if the Seller is able to provide any documentation that could be relevant as this will also help the process to move more quickly.

Once these documents have been received, the Buyer’s solicitor is responsible for reviewing all of the documentation as well as the draft Contract. The Buyer’s solicitor will also order a range of searches in relation to the property. These will alert the Buyer to any possible issues at the property relating to matters such as planning applications in the local area, any risk of flooding or ground instability and the drainage and water supply. The cost of these searches is charged separately to the solicitor’s fees, but they are very important in raising awareness of issues that may not be visible from a brief inspection of the property. It is also advised that the Buyer obtains a survey of the property to establish any defects at the property.

After reviewing the documents from the Seller’s solicitor and the results of the searches, the Buyer’s solicitor will raise any further queries that they may have. Once the Seller’s solicitor has responded to these, the Buyer’s solicitor will compile a Report on Title setting out all of the key information pertaining to the property as well as a summary of the results of the searches. This is then sent to the Buyer to review.

Exchange

Whilst the investigation into the property is underway, both the Buyer’s and Seller’s solicitors will have agreed the form of the Contract and sent it to their respective clients for signature. Once the Buyer has considered the contents of their Report on Title and confirmed that they are happy to proceed, all the parties in the transaction will agree a completion date. At this point, the solicitors will exchange contracts. If a client has both a sale and a purchase, their solicitor will ensure that exchange of contracts on both transactions is simultaneous and usually with the same completion date.

At the point of exchange, a deposit is paid to the Seller. The amount of the deposit can vary but it is usually 10% of the purchase price. This deposit will then be deducted from the purchase price when the balance is paid at completion.

The completion date is normally between 2-4 weeks from the exchange of contracts to allow the parties to make arrangements for moving day. During this period, the Buyer’s solicitor will prepare the Transfer of the property which, once approved by the Seller’s solicitor, is signed by the parties. If the Buyer is purchasing the property with the help of a mortgage, the Buyer’s solicitor will also use this time to send a Certificate of Title to the Lender and apply for the mortgage advance, which is usually received the day before completion. Depending on the Lender, there may also be other requirements for the Buyer’s solicitor to fulfil.

The last step before completion is for the Buyer’s solicitor to make final searches at the Land Registry and Land Charges which protects their clients’ interest over the property, and the Buyer will transfer the balance of monies required to complete the transaction.

Completion

This is the final stage of the conveyancing process and it takes place on the date agreed by the Buyer and Seller, as stated on the Contract. The Buyer’s solicitor sends the Seller’s solicitor the balance of the purchase money by telegraphic transfer. In instances where there is a chain of transactions, it may take a bit longer for the money to pass through the respective solicitors’ banks. This means that we cannot always say at what point in the day completion will take place.

Once the Seller’s solicitor has received the completion monies, they will contact the Estate Agent to release the keys to the Buyer. The Seller’s solicitor will then send the Buyer’s solicitor the transfer of the property along with any other relevant deeds and documents. The Seller’s solicitor is also responsible for redeeming any mortgage on the Property and transferring the proceeds of the sale to the Seller.

Once the Buyer is getting settled in to their new home, the Buyer’s solicitor will pay any Stamp Duty Land Tax which is due and register the Buyer’s title at the Land Registry.

Although this provides a guide of the main steps in the conveyancing process, each transaction differs and there will be some which are more complex than others and may require further action outside of this.

If you are looking to buy or sell property, please get in touch with a member of our property team on 01494 521301 or by email.