The conveyancing process can be both complex and time-consuming. The process of moving home is undoubtedly one of the most stressful things you will do in your lifetime. Purchasing a home is also one of the largest financial investments you will ever make. It is therefore important to familiarise yourself with the steps involved in the conveyancing process so that you have a good idea of what to expect.
At Elite Law Solicitors, our experienced Residential Conveyancing team represent clients all over the UK. We will work for you and with you to meet your deadlines and to ensure that you move house how and when you want to. We help thousands of people move house every year and we use this experience to ensure that your move will proceed as quickly as possible with the minimum of fuss.
If you are moving home and require legal assistance with the conveyancing process, make a free enquiry by calling 0800 086 2929, emailing info@elitelawsolicitors.co.uk or completing our Free Online Enquiry Form.
The conveyancing process when buying a house
We understand buying a property can be exciting as well as stressful. This section of our guide is designed to provide you with a detailed understanding of the conveyancing process when purchasing a property. It will also give you a reference to keep you focused on what your solicitors are doing and reassure you that things are moving as they should.
The average conveyancing process should take between 8 to 12 weeks. Here is a breakdown of how it works:
Initial Steps of the conveyancing process
Once you have told us that you wish to use our services you should receive our Client Care Pack and Terms of Business. This needs to be signed and returned as soon as possible so that we can start work and commence the conveyancing process immediately.
We will also ask you to place us in funds so that we can request the necessary searches (see below for more information on this and please refer to our Fraud Notice).
We will require two forms of your Identification before we can commence any work, one being photographic ID and the other proof of address not more than 3 months old (all covered in the Client Care Pack).
You will also have informed your estate agent of our instruction and we would await the Memorandum of Sale from them which advises us who the Conveyancer for the seller/s are, together with a copy of the property particulars.
We would then write to the seller’s Conveyancer to confirm that we are instructed and request the draft contract papers. This pack includes information on the property’s title and the standard forms completed by the seller. If the property is leasehold a copy of the lease will also be included. This can take anywhere between the next day or 2 weeks plus to receive.
If you have also told us you are selling a property and need the transactions to be tied together, we will note this on your file. We also ask you about your Stamp Duty position to establish what if any Stamp Duty is payable by you to HM Revenue & Customs.
It is important to note, that from April 2016, if you are purchasing a buy-to-let or second home then you will need to pay an additional 3% SDLT surcharge on top of your existing stamp duty.
Legal work prior to Exchange of Contracts
Once the seller’s Conveyancer has sent us the draft contract and papers, to include the Lease if you are buying a Leasehold, we need to examine the draft contract documents and if necessary raise pre-contract enquiries with the seller’s Conveyancer. You will be required to go through the standard forms that the seller has completed and let us know if everything is as you expected, for example, what items are being sold as part of the property and what is being removed. This part of the process can take time; we need to investigate the title very carefully and ensure we can advise you on all the issues, for example, rights of way, who is responsible for maintaining which boundaries, etc. We will also carry out the necessary searches which consist of the Local, Environmental and Drainage & Water Searches.
If Leasehold
If the property that you are buying is leasehold we will send a standard Managing Agents Questionnaire called form LPE1 to the seller’s Conveyancer that will in turn be sent on to relevant Landlord/Managing Agents/Residents Association. What this document highlights is the important information such as the Service Charges, Ground Rent, Buildings Insurance, any foreseeable Major Works and so forth. It also provides up to date information as to who the Landlord (Freeholder) is.
We also check through the Lease to ensure that the clauses are adequate and that the Lease is compliant to the Council of Mortgage Lenders standard – this is whether or not you are obtaining a mortgage.
Your Mortgage
If you are taking out a mortgage we will receive a copy of the offer and go through the conditions and revert back to you to ensure you understand the terms of the mortgage. It is normal for us to undertake the legal work on behalf of your lender as well.
Enquiries to the Seller
This part of the conveyancing process involves sending a standard set of enquiries to the seller’s solicitor which would include:
- Questions on the Title documents sent
- If the property that you are buying is leasehold we will send a standard Managing Agents Questionnaire called form LPE1 to the seller’s solicitors that will in turn be sent on to relevant Landlord/Managing Agents/Residents Association. What this document highlights is the important information such as the Service Charges, Ground Rent, Buildings Insurance, any foreseeable Major Works and so forth. It also provides up to date information as to who the Landlord (Freeholder) is.
You may want to consider asking your own additional enquiries via us, these might include questions such as whether the property has been burgled, additional questions about the neighbours or more information about any known building works.
Steps leading up to Exchange of Contracts
We will prepare a Report on the Title for you which provides you with all the necessary information regarding the title to the property, a summary of the searches and your mortgage (if any). Once you are satisfied with the Report and its contents we will ask you to:
- Attend our offices to sign the contract and the mortgage deed
- You will need to make arrangements for the deposit (which needs to be sent to the seller’s solicitors on exchange of contracts) to be transferred into our bank account so that it is cleared in time for an exchange. We refer you to our Fraud Notice.
- We require you to have a Buildings Insurance policy in place
All the parties involved need to agree on a completion date and we will discuss proposed dates with you and liaise with the seller’s solicitors to get an agreed date.
The actual exchange of contracts normally takes place on the telephone between the Conveyancer for each side. From the point at which contracts are exchanged you are legally bound to buy and the seller is legally bound to sell. Should either party back out the other will be entitled to claim compensation for losses arising.
At the point that contracts are exchanged we will send your deposit to the seller’s Conveyancer. This acts as security for the seller in case you change your mind or for some reason are unable to pay the balance and complete the purchase. If that happens, the seller can keep your deposit, and may take you to court if the deposit is not enough compensation for breaking the contract. In the same way, if the seller exchanges contracts and then refuses to complete the sale, you could apply to the court for an order to force the seller to complete, or else get your deposit back and sue the seller for compensation. Although this has to be explained to you, it is rare for a sale not to complete once contracts have been exchanged.
Between Exchange and Completion
At this stage of the conveyancing process we prepare the following:
- The Stamp Duty Land Tax return on your behalf
- The transfer deed and completion information form so that the property can be registered in your name as soon as possible after completion. These are sent to the seller’s Conveyancer for completion
- You may also need to sign a Transfer Deed which we will send to you
- We prepare the completion statement outlining the monies received from you and due from you (if any). The Statement gives you a final figure which you will need to pay to us and you are to ensure this is cleared in to our bank account before completion. If you are taking out a mortgage we normally draw this down the day before completion so that there are no delays in waiting for the money on the day of completion.
Please refer to our Fraud Notice. We will never inform you by email of a change of bank account. Money must only be sent to us when we ask for it and once our bank details are confirmed to you by PDF and over the phone or in person. We also carry out a Lawyer Checker search against the seller’s solicitor’s firm and bank account to ensure that they are legitimate.
- The seller’s solicitor approves the draft transfer deed
- We also carry out pre-completion searches and apply to the lender for the mortgage funds
Completion
This is the day when we send the funds to the seller’s Conveyancer and the day you become the legal owner of the property. Completion is normally set for around 1-2PM on the specified day although in practical terms completion takes place when the seller’s Conveyancer confirms that they have received all the money that is due. Once this has happened the seller should drop the keys off to the estate agent ready for you to collect.
The seller’s Conveyancer sends the title deeds and transfer deed to us together with an undertaking to repay any existing mortgage. We send the stamp duty payable to HMRC, receive the title deeds, transfer deed and proof that the seller has paid the outstanding mortgage on the property and if the property is leasehold ensure that your Landlord is aware that you have taken over the Lease.
We register the property in the name of the buyer at The Land Registry which can take up to 2 months depending on the transaction. You will receive a copy of the registered title from The Land Registry. Any documents required by the mortgage lender to be retained by them are sent on by the Buyer’s Conveyancer. After this we will close your file and place it in secure storage for a minimum period of 6 years. This concludes the conveyancing process for purchasing a house.
The conveyancing process when selling a house
This section of our guide is designed to help you gain a better picture of the conveyancing process when selling your home. It will also provide you with an insight as to what your solicitors will do for you during your transaction.
Initial Steps of the conveyancing process when selling your home
Once you have told us that you wish to use our services you will receive our client care letter and Terms of Business. You should sign and return these as soon as possible so that we can start work.
We will also ask you to place us in funds so that we can request the necessary title deeds from HM Land Registry. Please refer to our Fraud Notice.
We will require two forms of your Identification before we can commence any work, one being photographic ID and the other proof of address not more than 3 months old (all covered in the Client Care Pack).
Once we have been formally instructed we will obtain the title deeds from your lender (if there is a lender involved) and/or the Land Registry.
We will send you the Property Information Form and the Fixtures, Fittings and Contents Form to complete These are standard forms provided by us. If your property is leasehold we will also need to complete a Seller’s Leasehold Information Form. We will also ask you to send to us any guarantees you hold together with any planning permissions, buildings regulations and any other paperwork you hold relating to the property.
We will also check with you if you are also buying a property and need the transactions to be tied together.
Once you have told your estate agent of our instruction, we will receive from them a Memorandum of Sale with a copy of the property particulars. We then write to the buyer’s Conveyancer confirming that we are instructed.
Legal work prior to Exchange of Contracts
Once we have the title deeds and you have returned the standard forms, these are sent to your buyer’s Conveyancer for approval together with a supporting contract pack which we prepare and which will include documents dealing with title, planning and any guarantees that are applicable.
If the property that you are selling is leasehold we will receive a standard Managing Agents Questionnaire from the buyer’s Conveyancer which is sent on to relevant Landlord/Managing Agents/Residents Association for completing.
Once your buyer’s Conveyancer has examined this paperwork they may need to seek clarification on certain points. They are entitled to raise enquiries (which means they are asking further questions about the property) with us and we would liaise with you to provide the information requested.
The buyer is entitled to rely upon any information that is supplied on your behalf so it is important that information supplied to us is accurate and that you make a full disclosure of any relevant facts about your property.
Your Mortgage (if any)
You will need to ensure you provide us with details of all loans secured against your property as these will need to be repaid upon completion of your sale.
We will request your lender to supply an up to date statement to us detailing the amount which is required to repay your mortgage.
Signing your Contract
Once the Buyer’s Conveyancer confirms they have acceptable results from their searches, are happy with the answers to pre-contract enquiries and are in receipt of a mortgage offer (if any) and are happy with the contract, you will be contacted by us to sign it in readiness for exchange.
Exchange of Contracts
Before an exchange can take place all the parties involved need to agree on a completion date. We will contact you with proposed dates so that you are happy with the day you wish to complete.
From the point at which contracts are exchanged you are legally bound to sell and your buyer is legally bound to buy. Should either party back out the other will be entitled to claim compensation for losses arising.
Between Exchange and Completion
At this stage of the conveyancing process we will obtain an up to date settlement figure to repay the outstanding amount on any existing mortgage, if applicable.
We will then send you a completion statement which is a document detailing our fees, loans to be repaid and all other outgoings. Any balance due to us will need to be cleared in our account prior to the completion date.
You will be required to sign a Transfer Deed, prepared by the buyer’s Conveyancer and checked by us in readiness for completion.
On Completion
Once we have confirmed that all the remaining monies have arrived, your sale has completed.
You should arrange to drop off the keys with the agent for the buyer to collect. On completion you must vacate the property. The buyer’s Conveyancer will send the proceeds of sale to us and we will arrange for the keys to be released to the buyer.
We send the title deeds and transfer deed to the buyer’s Conveyancer together with an undertaking to use the proceeds of sale to discharge any existing mortgage. We will ensure to pay off any mortgages and other expenses (such as estate agent fees if one was used), give an undertaking to your buyer’s Conveyancer to send your lender’s formal release of mortgage and send the title deeds and signed transfer to your buyer’s Conveyancer. This concludes the conveyancing process for selling a house.
How we can help with the conveyancing process
How we can help with the conveyancing processOur accredited and experienced Residential Conveyancing team have experience in all aspects of conveyancing. We can assist whether you require guidance on the conveyancing process or if you are already involved in the process of buying or selling a home.
Our experienced property lawyers place a strong emphasis on client care and adopt a pragmatic approach to ensure our clients’ needs are met efficiently and effectively.
If you require any assistance with the conveyancing process or have any queries relating to any of the issues discussed in this article, please get in touch and arrange a free initial discussion with one of our experienced property lawyers by calling 0800 086 2929, emailing info@elitelawsolicitors.co.uk or completing our Free Online Enquiry Form.
The content of this article is for general information only. The information in this article is not legal or professional advice. For legal or professional advice please contact an appropriately qualified and experienced property solicitor such as those within our firm.
