What Actually Happens During the Conveyancing Process?
Selling or buying a property can feel like a long process. There is often a lot going on behind the scenes, and if you have not bought or sold a property before, it is not always obvious what your solicitor is doing or why things seem to take so long.
You may have had an offer accepted, or agreed a sale, and be wondering what happens next. The answer is that there is quite a lot to do before you reach completion.
At Insight Law, we deal with property transactions every day, and while no two transactions are exactly the same, the stages involved are broadly similar. Some transactions are straightforward. Others involve leasehold properties, long chains, complicated titles or issues that need to be resolved before you can move forward.
So, what actually happens once you have agreed to buy or sell a property?
You’ve found a buyer or had an offer accepted. What happens next?
The first thing to understand is that, in England and Wales, an accepted offer does not usually mean that you are legally committed to the transaction.
This is one of the reasons the period between agreeing a sale or purchase and exchanging contracts can sometimes feel frustrating. There is a lot of work taking place, but either party can generally still withdraw before exchange.
For a buyer, this is when your solicitor will start investigating the property and making sure there are no legal issues that you need to know about before committing to the purchase. For a seller, your solicitor will prepare the contract papers and provide information about the property to the buyer’s solicitor. The sooner everyone gets moving, the better.
If you’re buying, your solicitor will investigate the property
When you buy a property, your solicitor is not simply checking that the seller owns it. They will look at the legal title and investigate whether there are any matters that could affect your ownership or your use of the property.
This might include checking for restrictions on the title, rights of way, covenants and other matters affecting the property. Your solicitor will also arrange the relevant searches. These can provide information about matters such as planning, highways, drainage and environmental issues. The searches you need will depend on the property and its location.
You will also need to consider the results of your survey. Your solicitor and your surveyor have different roles, but the two can sometimes overlap. If your survey identifies an issue, it may be appropriate to raise questions with the seller or investigate the position further.
What if you’re buying a leasehold property?
Leasehold properties can require more work. As well as investigating the title, your solicitor will need to review the lease and advise you on the obligations that come with owning the property. This can include service charges, ground rent provisions, restrictions on alterations and requirements relating to subletting or selling the property.
The length of the lease is also important. A property with a relatively short lease may be more difficult to mortgage or sell, and the cost and process of extending the lease will need to be considered.
Leasehold law is also an area that continues to evolve, so if you are buying a leasehold property, it is important to understand the position that applies at the time you buy rather than relying on general information you may have found online.
And what happens if you’re selling?
If you are selling, your solicitor will need information from you about the property. This will usually include completing property information forms and providing details of any relevant works, guarantees, planning permissions or other documents. It is worth taking some time to complete these carefully.
If information is missing or answers are unclear, the buyer’s solicitor may raise additional questions. That can add time to the transaction and, in some cases, create uncertainty for the buyer. If you are selling a leasehold property, you will normally also need to provide information about the lease and the management of the building. This is an area where delays can sometimes arise, particularly where information has to be obtained from a managing agent or freeholder.
If you know you are going to sell, it can be worth starting this process as early as possible.
Why are there so many questions?
One of the things clients sometimes ask us is why their solicitor is asking so many questions about the property. The answer is that your solicitor is trying to make sure you understand what you are buying. Some questions are straightforward. Others may lead to further enquiries.
For example, if a seller has carried out an extension, the buyer’s solicitor may want to see planning permission, building regulation documents or guarantees. That does not necessarily mean there is a problem. It is simply part of the process of establishing what has happened to the property and making sure the paperwork is in order.
What happens before exchange?
Before contracts are exchanged, the buyer and seller need to be ready to commit to the transaction. For the buyer, this will usually mean that the legal investigations are complete, searches have been received and any necessary enquiries have been answered.
If there is a mortgage, the lender’s requirements will also need to be dealt with. The buyer should also have their finances in place and be satisfied with the results of any survey.
For the seller, the contract documentation and enquiries should be dealt with and arrangements made for the sale to proceed. If you are also buying another property, you may be part of a chain. This is often where things become more complicated.
Your transaction may be ready to exchange, but you may still be waiting for someone else in the chain to be ready.
Exchange of contracts
Exchange is the point at which the transaction becomes legally binding. Once contracts have been exchanged, the buyer and seller are committed to completing the purchase and sale on the agreed completion date, subject to the terms of the contract. This is why your solicitor will want to make sure everything is in order before exchange. It is also why you should not feel pressured into exchanging contracts until you are comfortable that the legal work is complete and you understand the commitment you are making.
Completion day
Completion is the day when the purchase money is transferred and the property legally changes hands. For a buyer, this is usually the day you get the keys and can move into your new home.
For a seller, the sale proceeds are transferred to your solicitor, who will arrange for any mortgage to be repaid and account to you for the remaining funds. There is still some work to do after completion. Your solicitor will deal with the relevant post-completion steps, which can include registering the new ownership and mortgage at HM Land Registry.
How long does the whole process take?
There is no single answer.
A straightforward transaction can move relatively quickly, while others can take considerably longer. The timescale can be affected by the property itself, the number of people in the chain, how quickly searches are returned, whether a mortgage is involved and whether any legal issues arise.
Leasehold transactions can also take longer, particularly where information needs to be obtained from a managing agent or freeholder. The important thing is not to focus too heavily on a particular number of weeks. The aim should be to make sure the transaction is properly investigated and that any issues are dealt with before you commit to the purchase.
How can you help keep things moving?
There are some things you can do to help.
If you are selling, complete your property information forms as soon as possible and gather together any documents relating to work you have carried out. If you are buying, respond promptly to your solicitor’s requests and make sure your mortgage arrangements are progressing.
If your circumstances change, tell your solicitor. And if you are unsure about something, ask. A good conveyancer should be able to explain what is happening and, just as importantly, explain why.
Buying or selling a property?
Conveyancing can sometimes seem complicated, but much of the process is about identifying and resolving issues before they become problems.
At Insight Law, our residential property team advises buyers and sellers throughout the process, from the initial instruction through to completion. Whether you are buying your first home, moving house, selling an investment property or dealing with a more complicated transaction, we can help you understand what is involved and guide you through the legal process.
If you are thinking about buying or selling, getting your solicitor involved early can often make the process much smoother.
This article is intended as a general guide and does not constitute legal advice. Every property transaction is different, and you should obtain advice based on your individual circumstances.