An Insight into: Conveyancing

You have visited the show homes, you have looked up listings and had the house viewing and now you are ready to buy. So, what do you need to do to transfer ownership of a property from one person to another? It all begins when you make an offer on a property and it ends when you receive the keys.

Here we share a step-by-step guide to how the conveyancing process works so you know what to expect, especially if you are buying your first property.

1. Instruct a property solicitor to start the conveyancing process

To speed up the process it is always best to look for a property solicitor as soon as you begin your property search. Having a solicitor in place means you can complete initial paperwork straight away, such as proof of identity and proof of address.

At Insight Law, we do not charge you until the conveyancing process starts, so it makes sense to fill in as much paperwork as you can early on.

Efficient conveyancing is the key to buying a house. Delays in conveyancing can mean a property chain falls through because somebody’s mortgage offer expires, or they have a change of circumstances. The right solicitor will save you time and a great deal of stress, so it is important to choose carefully.

Our property solicitors at Insight Law are experienced and proactive. We spot any potential difficulties early and work quickly to solve them. We know when to intervene to speed up responses from other professionals and when to seek advice from a third party such as a builder or a surveyor.

2. Initial legal work

Once you have made an offer on a property the conveyancing process begins. Your solicitor will ask your seller’s solicitor for a copy of the draft contract and other legal details regarding the property such as the property’s title. The title is a legal document that says the seller owns the property and it specifies exactly what they own.

Your property solicitor will analyse the draft contract, the title and other documents the seller’s solicitor has sent them and raise any enquiries with them.

At the same time, you will be asked to look at form TA6. This is a form the seller completes which gives important information about the property. The form asks the seller detailed questions about the property such as whether there are any disputes with neighbours, when the boiler was last serviced and more. The seller is legally obliged to be truthful. Your solicitor will ask you if you have any questions once you have read the form.

If you are buying a leasehold property, it is important to check the length of the lease. Leases below 80 years can be problematic. It can be difficult and costly to extend short leases and it could mean you are left with a property you cannot later sell. If you really want to buy a property with a lease of less than 80 years your solicitor can advise you on the best course of action.

3. Property searches

Your property solicitor will carry out a series of standard legal property searches as part of the conveyancing process. Your solicitor will also be acting on behalf of your mortgage lender, so they may have to carry out additional searches for your lender.

Searches include:

Local authority searches. There are two types of local authority searches. One relates to restrictions on the property or the land (for example, is it a listed building? Is it located in a conservation area?), and the other relates to public highways and environmental factors (is a new road going to be built nearby? Is the property located in an area with high levels of radon gas? etc.)
Checking with the Land Registry that the seller owns the property, and they have the right to sell it. Your solicitor will look at the title register and the title plan to establish this.
Checking the risk of flooding with the Land Registry. This information will also be covered in the environmental search (see below).
Environmental search. This report will contain information about whether the property is located on or near contaminated land, flood predictions, ground stability, the radon gas hazard and more.
Water authority searches. These searches show whether there is a public sewer in the property boundary, where your water comes from and more.
Chancel repair search. In some areas you may be liable to contribute towards the chancel repairs of a medieval church – your solicitor will check.
Location specific searches. There may be additional searches that need to be carried out due to specific local risks e.g. if you buy a property in Cornwall you may need a tin mining search. Your mortgage lender may also request additional searches.

Local authorities are still clearing their backlogs as a result of the pandemic, so it is important to get searches underway as quickly as possible.

4. Mortgage conveyancing

As soon as you make an offer on a property you will need to arrange your mortgage. Once you have received an offer a copy will be sent to you and to your property solicitor. Your solicitor will then go through the terms and conditions of the mortgage and bring your attention to any possible issues.

Your mortgage company will carry out a valuation of the property to make sure the property you are buying will provide adequate security against the loan. You usually have to pay for the valuation. Mortgage valuations are completed by a surveyor either online or by visiting the property in person.

A mortgage valuation is not a replacement for a survey. When you buy a property, it is advisable to instruct a RICS qualified surveyor to carry out a survey on your behalf. The results of the survey could affect your decision to buy the property or could mean you renegotiate the purchase price.

5. Signing the contracts

Your property solicitor will ask you to sign the contract to buy the property. However, you are not legally bound to buy the property until contracts are officially exchanged.

Before you sign the contract, your solicitor will check:

That the answers to their enquiries are satisfactory.
You are happy with the fixtures and fittings included in the sale.
Both you and the seller have agreed a completion date. This is usually up to 4 weeks after contracts are exchanged, although it can vary.
The arrangements for the exchange deposit have been made. You must usually pay 10% of the value of a property as a deposit upon exchange of contracts. If you are in a property chain your solicitor may arrange for the money to move up the chain. This means you do not necessarily need to have a 10% deposit saved. It is important to know that if you pay a lower deposit, you are still liable for 10% if you pull out of the transaction after contracts have been exchanged.

Before contracts are exchanged your mortgage lender will require you to have arranged buildings insurance. This is because once contracts are exchanged you are legally responsible for the property.

6. Exchange of contracts

When contracts are exchanged you are legally bound to buy the property. This means if you do not go through with the transaction you will lose your deposit. The seller can no longer accept an offer from another person, and you can sue them if they do not sell the property to you.

Contracts are exchanged over the phone. Your property solicitor will phone your seller’s solicitor and they will read the contracts to each other. The contracts cover the sale price, the deposit amount, the completion date and all other terms and conditions. If you are in a property chain this will happen all the way down the chain.

Once contracts are exchanged your deposit will be paid to the seller.

7. Time between exchange and completion

Your property solicitor will lodge an interest in the property with the Land Registry. This means the property deeds are frozen for 30 working days while you pay the seller the remaining balance for the property, and the property title deeds are transferred into your name.

At this stage in the process, you will need to organise removals and all the other practicalities associated with moving house.

8. Completion

This is the day you receive the keys to your new property and the final stage of the conveyancing process. Completion normally happens around midday.

On this day your solicitor will:

Receive the title deeds for the property.
Receive proof that the seller has paid off any mortgage they owed on the property.
Register the property in your name with the Land Registry.
Transfer the balance you owe on the property to your seller’s solicitor.

9. Following completion

Your property solicitor has a few final tasks to complete once you have received the keys. They will:

Pay any Stamp Duty Land Tax you owe the HMRC.
Send your mortgage lender a copy of the property title deeds. The lender will hold these deeds until you have paid off the loan.

If you have bought a leasehold property your solicitor will also tell the freeholder that the sale is complete.

After 20 days of your solicitor registering the property in your name with the Land Registry you will receive your legal documents.

Why choose Insight Law property solicitors?

Whether you are a first-time buyer or a home mover our property solicitors will make sure your property transaction runs as smoothly as possible. As part of the Law Society’s Conveyancing and Quality Scheme you can rest assured that our team is highly skilled and focussed on client care.

Your appointed solicitor will work closely with you responding promptly to any questions you have. They will provide clear, straightforward advice throughout the conveyancing process and keep you informed at every stage.