This is a guide describing what's the conveyancing procedure when purchasing a house and what's conveyancing.
What is Conveyancing?Conveyancing entails officially transferring home ownership from the seller to the purchaser. It begins when your offer on a home is accepted and ends when you receive the keys. Realizing what it entails will help ensure there are fewer surprises on the way.
- If like most people you are too worried or time poor to do the conveyancing yourself, the next step is to find a solicitor or conveyancer and “instruct them” to do it for you. Avoid using the estate agents recommended conveyancer as it will likely be a commission based recommendation and cost you more. Get a quote and use it to shop around for the best price and service
- Your conveyancer will subsequently draw up a draft contract or conditions of engagement with you, setting out their fees and down payments demanded.
- Your solicitor raises enquiries with the seller's solicitor and will analyze the draft contract and supporting records. You'll be expected to check the paper work and ask your solicitor when you have some queries or concerns. In particular you may need to double check the tenure of your brand-new house: is it freehold or leasehold?
- plans for a motorway in your new garden? How about radioactive gas?
- Checking the ‘title register’ and ‘title plan’ at the Land Registry– these are the legal documents proving the seller’s ownership
- Checking flood risk – this is also done at the Land Registry –
- Water authority searches – find out how you get your water and if any public drains on the property might affect extensions or building works.
- You are going to have to get your mortgage set up. This includes ensuring you possess the funding accessible for a mortgage down payment. Your solicitor will be given a duplicate of the offer and go through the conditions.
- You are going to have to get a mortgage valuation. So that they are aware the property provides adequate security for the loan, this is performed on behalf of the mortgage company. You usually must cover it. However it might be thrown by a mortgage company in for free to entice business
- You are going to need to get some other required surveys. Whether you've got a survey done and what type of survey you select will depend on your particular situation.
- You are in charge of the property, so it is in your interests to do this as soon as contracts are traded.
- Since receiving the draft contract from the sellers solicitor, your solicitor will have been in correspondence with you about what is covered. Before signing the contract your solicitor will need to ensure:
- that fixtures and fittings contained in the purchase are what you anticipated A completion date was agreed between both parties, which is typically 4 to 12 weeks after exchange of contracts
- That you have made arrangements to transfer the deposit into your solicitors account so that it is cleared in time for an exchange. You may want to negotiate on the size of the deposit, which is normally 10% of the value of the property. However even if you agree to pay less than 10% you are still liable for 10% of the value of the property if you later pull out of the agreement. Therefore if you pay a 5% deposit and pull out of buying the property you will not only lose your deposit but also legally owe an additional 5% of the value of the property
- Visit the property together with the estate agent as well as the fixtures and fittings inventory list to make sure that everything the house has not been damaged in any manner and you paid for is still there
Exchanging contracts11. at this point you will have to agree with the seller, on the best day to exchange the contract.
- Your solicitor will exchange contracts for you. This is usually done by both solicitors/conveyancers reading out the contracts over the phone (which is recorded) to make sure the contracts are identical, and then immediately sending them to one another in the post.
- After you have exchanged contracts, you'll be in a legally binding contract to purchase the property for going with a set date. This implies that: -- If you do not finish the purchase, you owe the seller more in case the deposit was less than 10% and will lose your deposit -- the seller has to sell, or you can sue them --the seller can no longer accept another offer
Between exchange and completion
- Your solicitor will lodge an interest in the property which will mean that the deeds to the property are frozen for 30 working days to allow you to pay the seller and lodge your application to the Land Registry to transfer the deeds into your name.
- The seller will move out (although they may leave this to the day of completion)
- You need to organise the moving
- The solicitor will send you a statement showing the final figure to pay, which will ned to be cleared into your solicitors bank account at least one day before completion
On conclusion day
- The end is set on the given date although in practice occurs when the seller's solicitor affirms that they've received all the cash that's due around noon. Once this occurs, the keys should drop at the estate agents for your group. After that, you can move in.