Using Conveyance Solicitors When Buying a Property
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by: wentworthfs
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The conveyancing process
There are five stages involved in residential conveyancing when purchasing a property.
1.Pre-contractual stage
2.Exchange of contracts
3.Between exchange and completion
4.Completion
5.After completion
Pre-contractual stage
Once you have decided to make an offer on a property you have entered this stage. During pre-contractual stage you will likely have to payout initial fees for conducting valuations on the property or reserving a mortgage rate, but in addition to those fees due to the lender your conveyancing solicitor will likely request initial funds to cover the disbursements. Disbursements are the searches, land registry checks etc.
The contract (a legally binding document committing both parties to the transaction) is prepared to transfer ownership from the vendor to the purchaser. The vendors conveyancing solicitors will draw up the contract for agreement with the purchaser. Negotiation will take place from both parties of the transaction to define the terms of the contract. A contract would normally contain the following: -
•the boundaries of the property
•fixtures and fittings to be included in the sale
•the price the property will be sold for
•positive and restrictive covenants (legal restrictions or rights on the property, such as must maintain right-hand boundary wall, or any public footpath running through the land)
•planning restrictions in place
•descriptions of services (e.g. drainage, gas etc)
•date for completion of sale
Whilst the conveyancing solicitor is performing the searches, inspecting the title and negotiating with the vendors solicitors, the mortgage offer will be underwritten by the lender. A copy is sent to the purchaser, mortgage adviser and conveyancing solicitor. Once this is obtained it is a good time to consider obtaining home insurance. The mortgage lender will insist that buildings cover is purchased however, buildings and contents may likely be required.
Exchange of contracts
Once all the negotiating is complete and the vendor and purchaser are happy with the contents of the contract, they sign final copies of the contract and exchange with each other. At this stage the agreement to transact is legally binding and the purchaser will be required to pay a deposit. If any party were to pull-out of the transaction after this stage then suitable compensation will be sought.
Between exchange and completion
After exchange of contracts the conveyancer will prepare the legal documents to transfer ownership, inspect the mortgage offer and any requirements of the mortgage lender, as well as requesting the transfer of funds from the mortgage lender. Complete a financial statement to the purchaser regarding any further funds required in addition to the deposit, and mortgage amount, including the conveyancers fees. Arrange for the transfer of funds to the vendors solicitors, and then perform final land registry checks.
Completion
The keys are finally handed over to the purchaser, once the money for the transaction has transferred from the buyer to the sellers conveyancing solicitors. At this point the sale is completed and the property belongs to the purchaser, the purchaser will receive the keys and legal documents proving ownership. The conveyancers fees are paid if not already done.
After completion
The new owners will need to be registered with Land Registry, and stamp duty will need to be paid and any insurance will need to be placed on risk.
About the Author
Steve Wentworth formed his firm Wentworth Financial Services in November 2007 having been in the industry since November 2002. We have a free service to find conveyance solicitors for a purchase, sale or both. You can compare conveyancing on line by price, rating or distance. Read the original article in context at Using Conveyance Solicitors When Buying a Property.
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