Whether you are buying or selling a property for the first time, understanding the conveyancing process is essential. This legal process involves transferring the property ownership from seller to buyer. While this process is complex, your conveyancing solicitors will be there to guide you through all the necessary stages, providing vital legal support and helping make the transaction process smooth and simple for buyers or sellers.
This article explores the six key stages of the conveyancing process, from offer to completion, helping you understand what you can expect at each step and how conveyancing solicitors simplify property transactions.
Stage 1: Instruct a Conveyancer
The conveyancing process begins as soon as a buyer has made an offer on a property or a seller has accepted an offer. At this point, you will need to instruct a conveyancer to start work on the legal side of the property transaction.
Choosing the right conveyancer is important, as they will be responsible for carrying out property searches, checking legal documents, liaising with the other party’s solicitor, and ensuring that the transaction runs smoothly. It is advisable to obtain quotes from multiple conveyancing firms to compare costs and the services they provide.
For Buyers
Once you have instructed a conveyancing solicitor, they will begin ID and Anti-Money laundering checks. Your conveyancer will also request proof of origin of funds to finance your purchase and monies payable for searches
For Sellers
Property sellers are required to complete protocol forms that provide essential information about the property. This includes the fixtures and fitting which will be left behind as well as deeds, certificates and planning permission documents.
Stage 2: Pre-Contract
At this stage, the seller’s conveyancing solicitor will draw up a draft contract and provide supporting documents. These documents, including the TA6 (Property Information Form) and TA10 (Fixtures and Fittings Form), will be sent to the buyer’s solicitor for review and to begin complete conveyancing searches to ensure there are no unknown issues with the property
For Buyers
Proof of Origin of Funds
Buyers must provide evidence of where their money is coming from. Most of the time, they come from a mortgage lender, however, evidence of this and any money coming directly from the buyer is needed. The proof of funds required depends on where the money has come from, but it often includes bank statements, pay slips, inheritance documents, a property sale or a gift deposit from a family member or third party.
Conveyancing Searches
Several searches must be carried out on the property to identify its condition and any potential risks that may affect whether buyers choose to proceed with the sale or drop out of it. These searches include:
● Environmental Search: This examines the risk of flooding, subsidence, energy schemes and contaminated land on the property.
● Water and Drainage Search: This determines whether the property is connected to the mains water and drainage systems and whether there are any drainage issues.
● Chancel Repair Liability Search: This search finds out whether the property is within a district where chancel repair liability is claimed for any repairs to the local church.
● Local Authority Search: This provides information on the property’s planning permissions and building history.
For Sellers
The seller must provide all the basic information about the property for the conveyancer to compile the contract pack for the buyer's solicitors review. These documents typically include:
● Draft Contract
● Title Register and Title Plan
● Protocol Forms (e.g. TA6 and TA10)
● Planning Permissions, Certificates and Guarantees
Stage 3: Conveyancing Enquiry
The conveyancing enquiry stages gives the buyer’s conveyancer the opportunity to raise any queries or concerns from the documents supplied in the contract pack by the seller’s conveyancer. The enquiries will be based on the information received in the previous stage, often relating to the title deeds, property surveys, pre-contract search results, and any information in the protocol form.
If the conveyancing searches reveal any potential issues, the buyer’s solicitor may request further information or seek assurances from the seller. This stage is crucial for the buyer to investigate any defects that could affect the property before signing the final contract and committing to the purchase.
Indemnity insurance is commonly purchased if the seller cannot provide the answers to enquiries that have been raised. However, the indemnity policy does not remedy the defect, it provides financial compensation in the event of the defect causing a loss that cannot be resolved in a timely manner or at all.
Stage 4: Exchange of Contracts
Up until this stage, either buyer or seller can withdraw from the transaction. However, once the exchange of contracts is completed, the property transaction becomes legally binding.
The contracts set out the key terms of the sale, including the amount of deposit, completion date and the consequences of failing to complete, which may include forfeiting the deposit or financial penalties.
Conveyancing solicitors will exchange contracts on your behalf. This is often done by both conveyancing solicitors reading out the contracts to make sure they are identical, and then sending them to one another in the post.
Stage 5: Completion
Legal transfer completion occurs when the seller’s conveyancers have received the completion monies from the buyer’s conveyancers. Once the funds have been received, the seller’s conveyancing solicitors will formally confirm completion has taken place and the sale proceeds will be transferred to the seller.
On the day of completion, the seller’s solicitors will authorise the estate agents to release the keys to the property. They will also send the signed transfer deed to the buyer’s conveyancers to facilitate their post-completion works.
Stage 6: Post-Completion
After completion, there are several legal tasks which must be completed to finalise the conveyancing process.
For Buyers
The buyer’s solicitor will submit a Stamp Duty Land Tax (SDLT) return to HMRC and arrange for any required payment to be made within 30 days of completion. They will also ensure that any indemnity policies are activated if necessary.
The property must also be registered with the HM Land Registry. The buyer’s property solicitors will submit an application to register the new ownership, along with details of any mortgage secured against the property. Once registration is complete, the buyer will receive a copy of the title register, confirming their legal ownership. The solicitor will also notify the mortgage lender that the property has been registered in the buyer’s name.
For Sellers
The seller’s solicitor will ensure that any existing mortgage or financial charges on the property are taken from the sale proceeds. If the seller has agreed to provide indemnity insurance, the policy will be activated and sent to the buyer’s solicitor.
The solicitor will also arrange for the estate agent’s commission to be paid from the sale proceeds. If the property was leasehold, any outstanding service charges or ground rent arrears must be settled before the transaction is closed.
Finally, once all deductions have been made, the property solicitors will transfer the remaining sale proceeds to the seller’s bank account, concluding the property transaction.
Duffield Harrison – Expert Residential and Commercial Property Solicitors
At Duffield Harrison, our experienced conveyancing solicitors provide expert legal support for all property transactions. Whether you need assistance with residential purchases or require specialist advice from our commercial property solicitors, we ensure a smooth and legally compliant process.
With in-depth knowledge of commercial property law, we help businesses navigate legal complexities when acquiring, leasing, or selling property. From conveyancing searches to contract reviews, our property solicitors protect your interests at every stage.
For reliable legal support in all property matters, contact the experts at Duffield Harrison today.
Comments