Conveyancing Explained
Moving house can be daunting and there’s a lot of jargon, especially with conveyancing.
We have written this simplified guide for you and hope it will help you navigate through the process.
This guide only applies to properties in England and Wales.
If you have any questions, just get in touch and we'll be happy to help.
Buying property in England and Wales follows a standard legal process and you will usually use a legal representative (a legal conveyancer or a solicitor).
The six stages are explained below.
Stage 1 – Instructing a legal representative
After agreeing the purchase price, we supply details of the buyer and seller and their respective legal representatives, to all four parties.
The seller’s legal representative will request the title deeds and ask the seller to complete a questionnaire. The seller will also need to complete a property information form, fixtures and fittings form and, if the property is leasehold, a seller’s leasehold information form. A preferred completion date should be discussed with the all parties. The sellers mortgage lender will provide the buyer’s legal representative with a statement outlining the total sum of money that needs to be repaid on completion of the sale.
The seller’s legal representative will send the legal contract pack (formal agreement to sell) to the buyer’s legal representatives accompanied by:
The Property Information Form
The Fittings and Contents Form
These provide information about the property (for example, if there are any problems with boundaries) and exactly what will be included in the sale (e.g. is the seller leaving all of the carpets or curtains?). The contract pack will also include the property title and forms completed by the seller. A copy of the lease will also be included if your property is leasehold. Although the buyer’s legal representative will deal with the paperwork, it is important that the buyer goes through these forms carefully and raises any questions or concerns at this stage. During these initial stages, the buyer’s offer to purchase the property will have been accepted and their mortgage application approved – the legal representative will obtain a copy of the mortgage offer. At this point in the process, the buyer should also arrange for a property survey separate to the lender’s valuation report. Until contracts have been exchanged (stage 4 below), either the buyer or the seller could have a change of heart and pull out of the sale without any legal consequences.
Stage 2 – Searches
The buyer’s legal representative will need to carry out required searches, including a Local Authority Search. These provide essential information about the property, such as:
The property boundary
Disputes
Rights of way
Planning constraints or permissions
Depending on the property and its location, other non-routine searches may also be required. The buyer’s legal representative should advise if this is the case.
Stage 3 – Plan a completion date
The contract pack, mortgage offer and local authority searches will be evaluated by the buyer’s legal representative. Sometimes issues arise, for example:
The property is located on contaminated land
The council are planning major road works near the property home
Someone else has right of way over your land.
A date for completion is then negotiated and agreed by all parties. The buyer’s legal representative will notify the seller’s legal representative and let them know that the buyer wants to progress with the contract exchange and they will then send them your deposit.
Stage 4 - Exchange
Final completion statements are prepared together with the transfer deed and mortgage deed for the buyer to agree and sign. This will also outline what money the buyer has to provide for completion.
HM Land Registry final searches will be organised by the buyer’s legal representative. This is a final check to ensure no changes have been made to the Land Register since the initial searches.
The seller’s legal representative will be sent the signed transfer deed, contracts will be exchanged and the deposit sent to the seller’s legal representative. On exchange of contracts both buyer and seller are legally committed to proceed with purchase/sale the property. The buyer’s deposit is usually 10% of the property price. At this point the buyer is liable to lose their deposit if they back out and the seller will be in a legally binding contract to sell the property – the seller can no longer accept another offer.
Stage 5 - Completion
Completion day is when the sale is finalised and the property is transferred to the buyer, as the new legal owner. The balance of the sale price is paid (less the deposit already paid) and the buyer’s legal representative will receive the signed Transfer Deed. Title deeds, transfer deeds and proof of outstanding mortgages will be obtained by the buyer’s legal representative.
The seller’s legal representative will require payment for their services before completion of the sale and all final accounts will be prepared by seller’s legal representatives for approval by the seller. The seller’s legal representative will verify that all deeds and remaining monies have arrived and that the sale is complete, and transfer the deeds to the buyer’s legal representative. The seller’s legal representative will then pay the us, repay the amount owing to the existing mortgage lender (if applicable) and take payment for their conveyancing service costs. Once all the payments have been made, the remaining money from the house sale will be transferred to the seller, usually by bank transfer on the day of completion.
On completion, the seller must vacate the property at the agreed time and release the keys to us so we can pass them on to the buyer.
It is worth noting that in England and Wales, until contracts are exchanged, neither party is legally bound and either party can withdraw at any time. Only once contracts have been exchanged must the buyer and seller complete. If the buyer fails to complete on the agreed date, the seller can serve a notice and if the buyers still does not complete, they will forfeit the deposit.
Stage 6 - Post completion
The new owner’s legal representative will arrange for any Stamp Duty (if applicable) to be received by HM Revenue and Customs and send your documents to HM Land Registry to register the new owner of the property – this must be done within 30 days of completion of the purchase. HM Land Registry will send the title deeds to new owner’s legal representative and these will be passed onto the mortgage lender (if they have provided finance). If the new owner is a cash buyer the title deeds will be passed on to the new owner.