CONVEYANCING IS AN ESSENTIAL STAGE of a property transaction. It is the term for the legal and administrative process that comes with buying, selling or mortgaging a property or piece of land.
There are a lot of things to handle, including legal issues, financial arrangements, and regulations to adhere to. The conveyancing process for each transaction will be slightly different, since each transaction is unique.
On average, the conveyancing process takes 8 to 12 weeks from start to finish, but this can vary depending on the complexity of the transaction.
Here’s our step-by-step guide through the process.
MEMORANDUM OF SALE CIRCULATION
Your estate agent will share the Memorandum of Sale with both parties.
This document indicates that the sale has been agreed and documents your intent to buy, along with the seller’s terms of sale. It is not legally binding, so at this stage, either party can still withdraw.
SOLICITOR INSTRUCTION & CLIENT ENGAGEMENT
The first step is instructing a solicitor to act on your behalf. Once you have done this, they will send you a client care letter which sets out their terms of engagement.
It’s important that you read and understand this document before returning it, as it sets out the basis upon which your lawyer will be working.
You will also be asked to provide some personal information so that your solicitor can carry out the necessary checks, and to open a file for your transaction. You’ll need to provide ID documents, such as your passport, proof of address and your National Insurance number.
MORTGAGE APPLICATION
You could already have a mortgage Agreement in Principle but, at this stage, you now need to make a full application to your mortgage lender.
Your mortgage broker will assist you and make sure that all of the relevant information is in place.
SURVEYS
Next, your lender will likely be carrying out a mortgage valuation survey. You might never see the detailed results of the mortgage valuation survey, so if you’d like to know in advance about any structural issues that affect the property’s value, you’ll need to arrange a more in-depth survey.
THE SEARCHES
Your solicitor will now carry out a number of searches on the property you are buying, to check for any potential problems.
These include:
- A local authority search – this will reveal any planning permissions or building regulation consents that may affect the property.
- A water and drainage search – this will check whether the property is connected to mains water and sewerage, and whether there are any public drains on the land.
- An environmental search – this will identify if there are any environmental issues that could affect the property, such as flood risk or contaminated land.
- A chancel repair search – this is only relevant if the property is located in a parish where there may be a liability to contribute to the repair of the local church.
NEGOTIATING THE CONTRACT
Once the searches have been carried out and you are happy to proceed, your solicitor will draft the contract of sale. This sets out all the legal details of the sale, including the price, any special conditions, and the date of completion.
The contract will also include a fixtures and fittings list, which sets out what items will be included in the sale (e.g. carpets, curtains, light fittings).
Once the draft contract is ready, your solicitor will send it to the seller’s solicitor. They will check that everything is in order and, once they are happy, they will send it back to your solicitor.
BUILDINGS INSURANCE
Before contracts are exchanged, you will need to put in place buildings insurance on the property you are buying, since you will be liable for any problems that occur later in the process.
LIFE COVER
This is a could time to start any new life insurance policies you have applied for.
EXCHANGE OF CONTRACTS
Once the contract is agreed by both parties, your solicitor will arrange for it to be ‘exchanged’ with the seller’s solicitor. This is when the sale becomes legally binding to both parties.
At this point, you will need to pay the exchange deposit to your solicitor. This is usually paid by bank transfer.
You will also need to agree on a date for completion, which is when you will become the legal owner of the property.
PREPARING FOR COMPLETION
Your solicitor will now start to prepare for completion, which includes requesting the balance of your mortgage deposit and arranging for the transfer of the balance of the purchase price to the seller’s solicitor.
If you are selling a property as well as buying one, your solicitor will liaise with the buyer’s solicitor to make sure that everything is ready for completion.
COMPLETION
Completion is when the sale becomes final and you become the legal owner of the property.
The balance of the purchase price is transferred to the seller’s solicitor, and the keys are handed over to you.
Your solicitor will notify the Land Registry of the change of ownership.
Your solicitor must now report the sale to HM Revenue & Customs and make the payment of any stamp duty. Though the time taken by this entire process varies, you should typically allow between three to four months
Congratulations – you’re now the proud owner of your new home!
