Step-by-step Guide to Conveyancing

What is Conveyancing?

Conveyancing is the process of transferring the legal title to a property or land from one individual to another. To put it another way, Conveyancing is the legal process required in the buying and selling of a home.

But what does it actually entail? Our seven-step guide will clarify the Conveyancing process for you.

One: Instruct a solicitor

In normal circumstances, both the buyer and seller will instruct their solicitors once the offer has been made and accepted via the estate agent. The estate agent will have negotiated the sale price, and once agreed by both the buyer and seller, the sale memo will be issued to the respective solicitors. The solicitors can then start work.

Two: Provide details, draft contract, and searches

The buyer and seller provide necessary details to their solicitors. For the buyer this will include personal and purchase information; for the seller title deeds and mortgage details.

The drafting of the contract begins, including property description, settlement date, and any price conditions. At the same time the buyer’s solicitor will complete the compulsory local searches, for example into environmental risks. Optional searches are also available at the buyer’s request. The buyer will also arrange for a survey of the property to be completed.

Three: Issue and review contract of sale

The seller’s solicitor sends the contract of sale to the buyer’s solicitor once it is completed. All information regarding the property and the sale, including title deeds and any lease information, will be accurately detailed in the contract.

The buyer’s solicitor will then review the contract thoroughly, making sure that it meets the expectations and interests of the buyer. Both sets of solicitors will stay in close contact so that any issues or queries can be dealt with in a timely manner.

Four: Work together on concerns and issues

The buyer’s solicitor will raise any concerns or issues to gather additional property information and deal with any uncertainties. This could include planning permissions, boundaries, or legal title. On receipt of these enquiries the seller’s solicitor will discuss any issues with the seller and advise them on what is required.

By working together in this way both sets of solicitors ensure their clients have clarity and are able to make informed decisions. The seller’s solicitor then replies to the buyer’s solicitor with the information and answers required.

Five: Exchange of contracts

Only when all the concerns and issues have been resolved by both sets of solicitors will the transaction process be ready to progress. The buyer’s solicitor will arrange for signed copies of the contract between the buyer and the seller to be exchanged. They will they confirm all necessary information is correct, for example the deposit amount and settlement date.

On receipt of a signed copy of the contract from the seller’s solicitor the buyer needs to sign it and return to their solicitors for signature.

The exchange of contracts commits the buyer and seller to the sale and failure to complete could lead to legal action or financial penalties. This is also the point where the buyer will usually pay the agreed deposit, which is then held by their solicitor.

Six: Completion

This is the final transfer of ownership from seller to buyer. The buyer’s solicitor requests the release of mortgage funds from the lender which, with the deposit, is transferred to the seller’s solicitor.

In a cash purchase the buyer will have transferred funds for the purchase to their solicitor to release at this point.

If the seller has any outstanding mortgage this is then paid off by their solicitor. The seller’s solicitor then forwards the remaining balance to the seller.

The seller must then hand over their keys and vacate the property. The buyer can then collect the keys and move in.

Seven: Post-completion

The final stage takes place after completion, addressing a couple of remaining legal processes. The buyer’s solicitor will need to pay any outstanding Stamp Duty Land Tax to HMRC. This is done in the buyer’s behalf and must be completed within 14 days of completion.

Also, the buyer’s solicitor will make the application to HM Land Registry registering their client as the new owner. New title deeds reflecting this will then be issued.

There are of course many potential variations to buying and selling a property. However, this guide to conveyancing covers most property transactions in the UK. It is always advisable to have your solicitor guide you through the process in case of any additional issues.