Buying and selling a house can seem like a daunting process, here is a breakdown of the crucial stages of the conveyancing process:
Step 1: Instructing your solicitor
An offer has been accepted, so it’s time to instruct your solicitor. This is where your solicitors will formally engage you as a client and provide you with their client care papers (also known as terms of business). It is at this stage your solicitor will carry out their compliance and money laundering checks by confirming your identity.
Onboarding can be done by visiting the office and providing ID documents, or here at hpjv we use a secure digital onboarding system which allows you to carry out onboarding on your mobile phone.
If you are selling a property, your client care pack will also include property forms to complete which will confirm the items being left at the property, as well as information on matters such as planning permission, guarantees and warranties.
Step 2: The contract pack
The contract pack is drafted by the seller’s solicitor which will consist of:
Draft contract and transfer
Official title register and plan from HM Land Registry
Sellers property forms
Any guarantees and warranties for works done (electrical work, extensions etc)
Once the draft contract pack has been issued, this will allow the buyer’s solicitors to review the pack and put in hand searches. If you are purchasing, it is important to review the title plan to confirm you are happy with the boundaries and the extent of the property being sold before searches are ordered.
Step 3: Searches and surveys
Searches will be ordered by the buyer’s solicitors which can consist of:
Local Authority Search
Water and Drainage Search
Environmental Search
Coal Mining Search (where necessary)
Chancel Repair Search (where necessary)
Searches will vary significantly depending on the local authority, but can take weeks to be returned. Your solicitor will review the searches and highlight any issues that may be of concern to you or your lender.
It is important to note that your solicitor is not a surveyor and cannot inspect the property. Although it is not a legal requirement, it is advisable to have an independent property survey carried out.
Stage 4: Mortgage
You should have already obtained an agreement in principle from your lender, it is very important to ensure that you have a mortgage offer at this stage. Once you notify your lender of your solicitor’s details, a copy of your offer will be provided to them directly. Your solicitor will report to you on the terms of the offer and any obligations you will have under the agreement.
All offers will have an expiry date and it is important you make a note of this, as you must complete before the offer expires.
Stage 5: Enquiries
The buyer’s solicitor will review all contractual documents and searches in great details before raising enquiries with the seller’s solicitors. Some enquiries may require further information from the sellers, or even third parties, and delays are to be expected at this stage of the matter.
Once replies to enquiries have been received in full, the buyer’s solicitor will then report to their clients on all matters by providing a ‘report on title’.
It is at this stage that the sellers would be provided with a contract and transfer for signature by their solicitor and a separate contract and transfer would be signed by the buyers.
Stage 6: Exchange
Once all outstanding matters have been addressed and a completion date has been agreed, exchange of contracts can go ahead.
On exchange, all parties are contractually bound to buy/sell and the completion date will be set. Your solicitor will exchange contracts over the phone and the buyers will be required to pay a 10% deposit on exchange.
It is usual for the buyer’s solicitor to request funds from the buyers at least one working day before exchange to ensure funds are available on the day of exchange.
Stage 7: Completion
If purchasing with a mortgage, your solicitor will request funds prior to completion.
The buyer’s solicitor will then transfer funds to the seller’s solicitor and, once received, keys will then be handed over by the estate agents.
It is at this stage that legal completion has taken place!
Stage 8: Post-completion (purchases only)
Once you have completed, your solicitor will arrange for any Stamp Duty (properties in England) or Land Transaction Tax (properties in Wales) to be paid to Revenue and Customs. They will also register you as the new owner of the property with HM Land Registry.
Please note that there are significant delays in processing applications with HM Land Registry and some applications can take months to complete.
If you are looking to instruct a solicitor, please click this link CONVEYANCING QUOTE to receive a quote now or contact our Conveyancing Department on 01633 242526 or email enquires@hpjv.co.uk
