Buying or selling a property is a significant milestone in life, but it also involves a complex legal process called conveyancing. If you’ve ever wondered, “What is the conveyancing process?” you’ve come to the right place. This guide will walk you through each stage of the journey, shedding light on this essential aspect of property transactions.
Understanding Conveyancing: The Basics
At its core, conveyancing is the legal process of transferring property from one person to another. It includes all the necessary legal and administrative work to ensure that the property purchase or sale is valid under law.
Stage 1: Pre-Contractual Stage
Seller’s Perspective
The conveyancing process kicks off when a seller decides to put their property on the market. The seller’s solicitor or conveyancer will gather all the necessary legal documents, including the title deeds and forms outlining the property’s details and boundaries. These documents are then compiled into a draft contract, which is sent to the buyer’s solicitor.
Buyer’s Perspective
Once the buyer’s solicitor receives the draft contract, they begin conducting ‘searches’ and enquiries about the property. These searches provide crucial information about the property, such as its planning history and any potential liabilities. At this stage, the buyer should also arrange a survey of the property to identify any structural issues.
Stage 2: Exchange of Contracts
After the buyer’s solicitor reviews the draft contract and the results of the searches, and the buyer is satisfied with the survey results, it’s time for the exchange of contracts. At this point, the buyer and seller sign final copies of the contract and exchange them, making the deal legally binding. The buyer also pays the deposit, usually around 10% of the purchase price.
Stage 3: Between Exchange and Completion
During this interim period, the buyer’s solicitor will prepare the transfer deed, a document that officially transfers ownership from the seller to the buyer. The seller must agree to this document, and both parties sign it in readiness for the completion date.
Stage 4: Completion
Completion day is when the balance of the purchase price is transferred from the buyer’s solicitor to the seller’s solicitor. Once the seller’s solicitor confirms receipt of funds, the keys are released to the buyer – this is typically handled through the estate agent. The property now legally belongs to the buyer.
Stage 5: Post-Completion
After completion, there are still a few administrative tasks to be handled. The buyer’s solicitor will pay any Stamp Duty Land Tax due and register the new owner with the Land Registry. Once this process is complete, the buyer will receive the legal documents that confirm their ownership of the property.
Conclusion: A Journey Worth Taking
The conveyancing process might seem like a complex journey, but with the right support, it’s a manageable one. Whether you’re buying or selling, a good solicitor or conveyancer will guide you through each step, ensuring everything runs smoothly. In the end, the joy of a successful property transaction makes the conveyancing process well worth navigating.
