The conveyancing process explained

The conveyancing process explained

Matt Gillies, Senior Partner of RG Solicitors, a leading member of the panel of expert conveyancing solicitors with Legal Index, provides a step-by-step guide to the conveyancing process from the different perspectives of the seller and the buyer, to give an insight into what you can expect when selling or purchasing property.

The conveyancing process from the seller's point of view

Instructing a solicitor

When you are selling your property and have accepted an offer, you will need to instruct a solicitor.

Establishing what's included in the sale

The solicitor will need to know exactly what fixtures and fittings are included in the sale, and which ones are not.

Contacting the mortgage lender

If you are the vendor, then your solicitor will need to contact your mortgage lender to obtain the title deeds for your property and give notice that the mortgage will be redeemed. Please note that some lenders require a certain period of notice.

Preparation of contract

This sets out the legal terms under which both parties have agreed that the property be sold.

Leases

If you are selling a leasehold property (usually a flat), then your solicitor will have to provide information to answer any questions raised by the buyer's solicitor in relation to the lease. Your solicitor may be charged by your freeholder for providing such information.

Setting a moving date

This will be agreed on by both parties (and usually synchronised with all parties in the chain) and is normally two to four weeks after the exchange of contracts.

Exchange of contracts

Once the contracts have been exchanged, there is no going back on the sale since all parties are legally bound by the terms of the contracts.

Insurance

After the exchange of contracts, the property may also be insured by the buyer but you, as the seller, are still responsible for maintaining the condition of the property. Indeed, it is advisable for the seller to maintain insurance until completion.

Completion

This is when you move out and your solicitor allocates the incoming funds on the sale accordingly. Your solicitor will pay the outstanding amount due on the mortgage and the legal and estate agency fees. Any funds left over will be paid to you, the seller.

The conveyancing process from the buyer's point of view

Making an offer

When you are buying a property, once the vendor has accepted your offer, you will need to instruct a solicitor.

Informing the estate agent and mortgage broker

You will need to inform both your estate agent and your mortgage broker of your solicitor's details.

HIP and Searches

If the property you are buying has a HIP your solicitor will review the information to ensure the information is correct. If any further information is required, your solicitor will obtain this, usually from the seller's solicitor. If the property does not have a HIP, your solicitor will carry out searches obtained from the Local Authority. The searches normally take between two and four weeks and only concern the property being purchased - they will not include the surrounding area.

Fixtures and fittings

The solicitor needs to know exactly what is and what is not included in the sale. He/she will then provide you with the fixtures and fittings list for approval.

Survey

Your mortgage lender will carry out the valuation survey. This is not a building survey and you cannot claim against the surveyor if they miss something. As such, a homebuyer report or full structural survey is recommended.

Contract preparation

This contract sets out the legal terms under which both parties have agreed that the property be sold. This will need to be checked by your solicitor and altered if necessary.

Approval of the contract

Once the deeds and the contract have been approved by your solicitor, the contract is sent to the seller's solicitor for the vendor to sign.

Signing the contract

Once your solicitor has the mortgage offer and satisfactory replies to all enquiries raised; the contract is sent to you for signing.

Deposit

As the purchaser, you will be required under the terms of the contract to pay a deposit at the exchange of contracts. This is normally 10% of the purchase price but can often be negotiated down to 5%. The deposit is required independent of the mortgage, even if you have a 100% mortgage.

Setting a moving date

The moving date will be agreed upon by both parties (and usually synchronised with all parties in the chain). This is usually two to four weeks after the exchange of contracts.

Exchange of contracts

As soon as the contracts have been exchanged there is no going back. All parties are legally bound by the terms of the contracts.

Insurance

At the exchange of contracts, you will be required to show that you have taken out buildings insurance on the property purchased.

Completion

This is when you move in and your solicitor allocates the purchase funds on the sale accordingly. He/she will pay the purchase price to the vendor, the legal and estate agents fees, as well as other associated costs, such as stamp duty.

Information courtesy of RG Solicitors - a leading member of the panel of expert conveyancing solicitors with Legal Index.

Legal Index is part of the PropertyIndex.com group of companies, and offers a range of services from established firms of solicitors, mortgage brokers, insurance specialists and HIP providers, to make moving home as easy as possible.

Click here to find out more or contact Legal Index.

Last updated: 21 January 2009

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