When you are buying a house, there is a legal process that needs to be completed to transfer the property from the seller to the buyer. In this article, we cover the steps involved in the conveyancing process and share tips on how to find a conveyancer.
What Is Conveyancing?
The legal process of transferring home ownership through a sale is called conveyancing. It starts from when the home buyer makes an offer to when the seller officially hands over the keys. This process is carried out by a property lawyer, solicitor or conveyancer.
What Does a Conveyancer Do?
When you find a conveyancer, the first thing they will do is draft an agreement with you stipulating their terms of engagement. If you sign their contract, they can then begin the steps in a conveyancing transaction.
- Contact the seller’s lawyer- Your conveyancer will write the seller’s solicitor requesting for the documents about the property including the title deed and maps. They will also request for a draft of the sale agreement.
- Conduct searches- Using the documents provided, the conveyancer will do a search on the property to verify ownership details. Besides the mandatory search, they may opt to do other more comprehensive searches such as flood risks, boundary disputes.
- Verify the Sale Agreement- If the search results are satisfactory, the lawyer will go through the sales agreement with you to clarify any concerns. They will then make any necessary changes with the seller’s lawyer before the final sales contract is drafted.
- Contract Signing: Once the contract has been received, the conveyancer verifies that the terms of the contract have been met. This means ensuring that the home is in the agreed condition. The conveyancer also makes sure that you have the financing for the property ready to pay the deposit. You are required to transfer the agreed deposit, usually 10% into the solicitor’s account before signing the contract.
- Contract Exchange: This meeting occurs between you conveyancer and the seller’s solicitor. Sometimes, the contract is signed by you and the seller during the exchange as well. The two lawyers will verify the details on the two signed contracts before exchanging them. You then pay a deposit for the property, usually 10% unless otherwise agreed. At this point, you have legally committed to buying the home. If you fail to carry out your end of the contract within the stipulated period, you may have to forfeit the deposit. The seller can also not accept any other offers during this time.
- Land Registry Application: At this point, the conveyancer applies to the land registry to freeze any activity on the title deed for thirty days. You are required to transfer the balance of the transaction into the solicitor’s account so he can complete the payment. During this period, the conveyancer will organize the paperwork for transferring the title deed into your name.
- Completion: Once the final payment has been made, the seller is required to handover the property to you. You will also receive the title of your property for safekeeping. The conveyancer is responsible for paying Stamp Duty and Land taxes on your behalf. You can then pay them for their services and enjoy your new home.
How to Choose a Conveyancing Solicitor
You may be asking yourself, ‘ do I need a conveyancer to buy a house ?’ It is possible to do the conveyancing yourself if you have experience. However, to avoid some costly mistakes, it is advisable to use a conveyancer. If you have a mortgage to buy the house, the bank will often require and even recommend a preferred conveyancer. The seller may also have a preferred conveyancer for the transaction, though this could cost you more in commissions. You could choose a solicitor you know for the conveyance. You can also find conveyancing solicitors online.
If you are wondering how to choose a conveyancer, you should look for the following qualities:
- Experience- All licensed attorneys are qualified to do conveyancing. However, choosing one with adequate experience at conveyancing safeguards your interests.
- Affordability- How much should a conveyancer cost? Conveyance costs depend on the value of the property but comparing prices can help you save money on your transaction.
- Transparency- A conveyancer with your best interests will inform you of any potential complications and hidden costs upfront.
Another question buyers often ask is ‘ how long should conveyancing take ?’ The average period between making an offer for a home and receiving the title documents and ownership is 90 days or less.
