Partner Alexa McQueen-Turner, in our Residential Property team, explains the steps of the conveyancing process when buying or selling a home.
Buying or selling a home can feel exciting, stressful and confusing all at once. ‘Conveyancing’ is the legal work that underpins this process by transferring ownership of a property from the seller to the buyer.
In England and Wales, conveyancing is usually carried out by a solicitor or licensed conveyancer. Their role is to check the legal title, review the contract, deal with property searches, handle mortgage requirements, arrange exchange and completion, and register the new owner with HM Land Registry after the purchase has completed.
Every transaction is different, but a straightforward freehold sale or purchase often takes around eight to 12 weeks. It can take longer if there is a chain, if the property is leasehold, if searches raise issues, or if mortgage or title documents are delayed.
Instructing your solicitor
The conveyancing process usually begins once an offer from the buyer has been accepted by the seller. At this point, both the buyer and the seller should instruct their own solicitor or conveyancer as soon as possible. The solicitor will confirm their terms of business, set out their fees and complete their client onboarding procedures, which typically include verifying client identity and, for the buyer, usually a source of funds and source of wealth check. These checks are required to comply with anti-money laundering rules, and it is recommended that you supply documents and information promptly to avoid delay.
If you are selling, your solicitor will also ask you to complete standard property forms. These usually include the Property Information Form and the Fittings and Contents Form. These forms were updated earlier this year, and you can find out more about them in our blog article here. They help the buyer understand important details about the property, such as boundaries, guarantees, disputes, services and what is included in the sale.
Preparing the contract pack
The seller’s solicitor prepares a draft contract pack and sends it to the buyer’s solicitor. This pack normally includes the draft contract, official copies of the title register and title plan, the completed property forms and any relevant supporting documents.
The buyer’s solicitor then checks the papers carefully. They will look for anything that could affect the buyer’s use, enjoyment or ownership of the property. If anything is unclear, they will raise enquiries with the seller’s solicitor. These questions may relate to planning permission, building works, guarantees, rights of way, boundaries, lease terms or other legal issues.
Carrying out property searches
If you are buying, your solicitor will order property searches. These are formal checks with public bodies and search providers which help identify issues that may not be obvious from viewing the property or reading the seller’s forms.
Common searches include a local authority search, which checks matters such as planning and building control; an environmental search, which may reveal flood risk or contaminated land; and a water and drainage search, which confirms how the property is connected to mains services. Extra searches may be needed depending on the location or type of property.
Reviewing the results and signing documents
Once the searches, enquiries and mortgage offer are in place, the buyer’s solicitor prepares a property report. This explains the key legal points, highlights any risks and sets out what the buyer is being asked to sign. If the buyer is happy to proceed, they will sign the contract and transfer deed and send the deposit funds to their solicitor.
Exchanging contracts
Exchange of contracts is the point where the transaction becomes legally binding. Before exchange, either side can usually withdraw, although they may lose money already spent on surveys, searches or legal fees. After exchange, pulling out constitutes a breach of contract and can have serious financial and legal consequences.
At exchange, the solicitors agree the completion date and formally exchange the signed contracts. The buyer’s deposit is also dealt with at this stage. Once exchange has happened, everyone can work towards the agreed moving date with much more certainty.
Getting ready for completion
Between exchange and completion, the buyer’s solicitor carries out final checks and requests mortgage funds from the bank or lender, if a mortgage is being used. They will also prepare a completion statement showing the balance needed to complete the purchase.
Completion day
Completion is the day the purchase money is transferred, and the buyer can collect the keys. The buyer’s solicitor will send the remaining funds to the seller’s solicitor and once the seller’s solicitor confirms the money has been received, completion has taken place and the estate agent can release the keys.
If the seller has a mortgage, their solicitor will use the sale proceeds to repay it. The seller must usually leave the property by the agreed time, unless a different arrangement has been made in writing.
What happens after completion day?
Although moving day may feel like the end of the process, your solicitor will still have important post-completion work to do. If Stamp Duty Land Tax is payable on a property in England, the buyer’s solicitor usually submits the return and pays the tax to HMRC within 14 days of completion. In Wales, different land tax rules apply.
Your solicitor will also apply to HM Land Registry to register the buyer as the new legal owner and, where there is a mortgage, register the bank or lender’s charge. Registration can take several weeks or longer, depending on the type of application and Land Registry timescales. Once this is complete, the buyer will receive updated title information confirming their ownership.
Thinking of buying or selling a property?
Our Residential Property team can help and advise on all aspects of residential property and the conveyancing process.
For further information or legal advice, please contact law@blandy.co.uk or call 0118 951 6800.
This article is intended for the use of clients and other interested parties. The information contained in it is believed to be correct at the date of publication, but it is necessarily of a brief and general nature and should not be relied upon as a substitute for specific professional advice.
