Client Guide to Conveyancing Transactions
This guide is provided in order to explain the steps which are usually taken and the factors which dictate when these steps must be taken.
However, after reading this guide, should you still have any worries then please do not hesitate to contact us.
The Conveyancing Process
The process of conveyancing is to transfer the ownership of land together with the many rights and obligations that may have been created in relation to it. They are often not evident on an inspection of the property. For example, someone may have a right to occupy the property, or a part of it though they may not be there when you inspect the property. A neighbour may have a right to enter the property and dig up drains in order to inspect or repair his drains.
The public too may have claims, for example, there may be a footpath across the property, the council could have rights, for example, compulsory acquisition or unpaid charges for making up a road. The planning authority may perhaps be considering schemes which may affect the environment of the house you are thinking of buying.
Further, does the seller have the right to sell the property? If he inherited the property were the correct steps taken to transfer legal ownership to him or is it still in someone else's hands?
These are some of the problems which may arise during the various stages of conveyancing and it is your legal advisor's duty to safeguard your interests and to discover if they exist and to advise you about them.
For the Buyer:
The stages between finding your dream home and exchanging Contracts
You have found your new property and the seller accepts your offer. Your legal advisor will now request a draft Contract from the Seller's Conveyancer, carry out all the necessary searches and receive your mortgage instructions from your Lender ( if you are buying with the aid of a mortgage) and make sure that all the mortgage conditions are complied with.
Once we are satisfied with all of the above we shall arrange for your signature to the Mortgage Deed and the Contract. It is our duty to ensure that contracts are not exchanged before you have all the available money necessary to pay for the property and that all other necessary searches and enquiries have been made with satisfactory results. Further, if you are also selling we shall aim to synchronise your purchase with your sale. This means ensuring that matters on both transactions are satisfactory in order that we can exchange on both together. This prevents you owning two properties or none at all !
For The Seller:
We shall forward to you the necessary Property Information Forms to complete. These will then be sent to your Buyer's Conveyancer.
We shall obtain the Title Document from your Lender or the Land Registry and prepare a draft Contact to send to your Buyer's Conveyancer. We shall then reply to any enquiries raised about the property.
We shall discuss completion dates with the Buyer's Conveyancer and once a date has been agreed we shall request a final payment figure from your current Lender.
Once you have signed the sale documents and we have checked that the sale proceeds are sufficient to redeem your existing mortgage we shall be in a position to exchange Contracts with the Buyer's Conveyancer with an agreed completion date.
For The Buyer and The Seller:
On exchange of contracts a deposit will be payable and this is normally ten per cent of the purchase price. Once this has taken place the transaction becomes binding. A completion date will now be fixed.
As we approach the date for completion, the financial details will be worked out and the buyer will be asked to provide any shortfall in time for completion. We must always have cleared funds in time for completion.
Once the monies are transferred from the buyer to the seller and the seller's Conveyancer confirms that he has received the purchase money, the buyer will be able to take up occupation of their new property.