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When you buy (and/or sell) a home, you need to instruct a solicitor. Conveyancing is the work that is undertaken to ensure a sale is legally binding, transferring the ownership of a property from a seller to a buyer.
There are several stages to conveyancing. This short guide will break down the complexity and help you understand what a solicitor does for you when you buy (and/or sell) a home.
Your property is likely to be your biggest asset. Conveyancing will make sure you own the property, highlighting the relevant boundaries and land ownership. A property which is leasehold has added complications as the longevity of the lease will need to be clarified. Failure to not use a professional conveyancer may result in disputes.
Once an offer has been accepted on a property, it is the time to instruct a solicitor. It is recommended you explore several options and remember the cheapest is not always the best, you may end up compromising on service which can delay the purchase/sell.
It is worth asking your estate agent for recommendations as they often are paid on completion so many will choose to partner with proactive law firms.
Solicitors will provide you with terms of engagement (including their fees and the deposits you need to pay). Many solicitors will offer a low or no cost fee should the sale not complete. It is worth asking the question whilst researching what solicitor to choose.
The solicitors will draft a contract, depending on whether you are a buyer or seller you will be asked to provide the following information:
Freehold is when a person, persons or corporate entity who owns the freehold interest in a property. This means they own the land forever, plus anything built on it.
Leasehold is where someone else owns the land on which your home is built – meaning ownership of the property can pass to them if the lease expires and is not renewed. Leases of 80 years is a problem and difficult to receive lending, while under 60 years is best avoided altogether. There are many leases with terms spanning over hundreds of years and generally not an issue. Find out more Leasehold vs freehold: what’s the difference? – MSE (moneysavingexpert.com)
There are often ground rent charges associated with leasehold properties. This will be explored during the conveyancing process.
If you are purchasing a leasehold property, you may be entitled to purchase the freehold, it is worth discussing this with your solicitor.
Purchasing a property on face value is risky. There could be a great deal hidden below the surface, for example an obligation to pay for local church repairs (Chancel Repair Liability) to an abandoned mine under your property.
There are 4 main conveyancing searches:
Sellers will be asked to fill in many forms as part of the property sale. Copies will be sent to the property purchasers and their solicitors for review.
A Fittings and Contents Form (TA10) This specifies what fittings and contents are included in the sale. What Sellers decide to leave can be variable, some are happy to leave behind large home appliances, whilst others may dig up plants in the garden!
Sellers may want to leave something behind, that the buyer would have preferred they took with them, such as a broken garden shed.
The seller should not take or leave anything without making it clear in this form (and you can contest their decisions and try to renegotiate price if you wish).
Alongside the TA10 from, the seller will need to fill in a Property Information Form (TA6). This covers a wide range of additional information about the property, such as boundaries, past building work, planning permissions, parking facilities, any ongoing disputes with neighbours, current utility suppliers and much more.
In addition to both the TA6 and TA10, Sellers are required to provide a TA13 (Completion information). This form is to ensure the buyer has all the information they require before the property purchase goes through. It includes information about vacant possession, deeds and documents, completion, bank details and information about the amount to be paid on completion, and mortgages and charges on the property.
If you have chosen a good conveyancing solicitor, they should be providing regular updates on progress. Estate agents with clients involved in a property chain should be proactive in encouraging their buyers and sellers to chase their solicitor. Unfortunately, estate agents and solicitors may fall short of this service, so it is recommended to put in a weekly call to check that there’s nothing your solicitor still expecting from you. Failure to do this may prolong the transaction and can cause the property sale to collapse.
In England and Wales, you will ‘exchange contracts’ when all solicitors are satisfied that their searches have shown no problems. Deposits are usually paid, preferred completion date confirmed (usually around 1 to 4 weeks) and the sale is legally binding.
As a buyer at this stage, you are contractually committed to the purchase. This means that if you pull out, you must still pay 10 per cent of the value of the property (this sum is usually paid on exchange, as your deposit).
It is important to note the buyer becomes responsible for building insurance at the point of exchange.
Before you complete on your property purchase, your solicitor will send a final statement. This is a breakdown of the amount of money already paid (deposit), the amount of money required to complete the property purchase and any other sums that have passed through the solicitor’s hands in relation to the purchase.
This sum will need to be cleared into your solicitor’s bank account at least one day before, so make sure you transfer it in plenty of time.
Remember that some bank transfers may take several days to clear, you will also need to factor in time it may take to access funds from your savings and non-working days including bank holidays.
Your solicitor transfers all relevant funds to your seller’s solicitor, and so on up the chain. Only when these funds are received will the solicitor confirm the sale with the estate agent, who will then release the keys.
This means that if you are higher up the housing chain, you may have to wait quite a while for this confirmation.
Solicitors will pay Stamp Duty (from the funds you have already provided) and send your legal documents to the Land Registry to confirm you as the new owner of the property.
Your solicitor will also send a copy of the title deeds to your mortgage lender.
You should receive your legal documents back from the Land Registry within about three weeks.
As there are so many spinning plates with conveyancing choosing the right solicitor is paramount.