Conveyancing is the legal process of transferring ownership of a property from one person to another. Whether you are buying or selling, most transactions follow the same key stages, although every property can bring its own questions along the way.
Below, we explain each stage of the process so you know what to expect and when.
The Stages of Conveyancing at a Glance
While the details vary from one transaction to the next, the conveyancing process usually follows these stages.
- Instructing a solicitor. You appoint a solicitor to act for you, and provide your identity documents and, if you are buying, proof of your funds.
- Preparing the contract pack. The seller’s solicitor drafts the contract and gathers the property information forms and title documents.
- Searches and enquiries. The buyer’s solicitor orders searches, reviews the contract pack and raises any questions about the property.
- Mortgage offer and reporting. Once the mortgage offer is received and all enquiries are answered, the buyer’s solicitor reports to their client.
- Exchange of contracts. Both parties sign, the deposit is paid and a completion date is fixed. From this point, the transaction is legally binding.
- Completion. The remaining funds are transferred to the seller’s solicitor and the buyer can collect the keys.
- After completion. The buyer’s solicitor pays any stamp duty to HMRC and registers the new owner with HM Land Registry, while the seller’s solicitor repays any existing mortgage.
The Conveyancing Process for Buyers
1. Instructing a solicitor – Once your offer has been accepted, you will need to instruct a solicitor to act for you. We will ask for your identity documents and evidence of where the money for your purchase is coming from, as all solicitors are required to carry out these checks before work can begin. We will then confirm our fees and terms in writing.
2. Reviewing the contract pack – The seller’s solicitor sends us a draft contract, along with the title documents and the property information forms completed by the seller. We review these carefully to check what you are buying, including the boundaries, any rights or restrictions affecting the property, and which fixtures and fittings are included.
3. Ordering searches – We order searches to find out about anything that may affect the property but is not obvious from viewing it. These usually include a local authority search, a water and drainage search and an environmental search, along with a coal mining search in former mining areas.
4. Raising enquiries and reviewing your survey– If anything in the contract pack or search results needs clarifying, we raise enquiries with the seller’s solicitor. If you have commissioned a survey, we will also look into any legal issues your surveyor identifies.
5. Receiving your mortgage offer– If you are buying with a mortgage, your lender will issue a formal mortgage offer. In most cases we also act for your lender, so we check that the property meets their requirements as well as yours.
6. Signing documents and paying your deposit – When enquiries have been answered and the searches and mortgage offer are in place, we send you a report on the property and ask you to sign the contract and mortgage deed. You will also need to transfer your deposit to us ahead of exchange.
7. Exchange of contracts – Once both sides are ready and a completion date has been agreed, we exchange contracts with the seller’s solicitor. At this point the transaction becomes legally binding, and the completion date can only be changed if both parties agree.
8. Completion and collecting your keys – Before completion, we request your mortgage funds from the lender and any remaining balance from you. On completion day, we transfer the full purchase price to the seller’s solicitor. Once they confirm receipt, the property is yours and you can collect the keys, usually from the estate agent.
9. Paying stamp duty and registering your ownership – After completion, we submit your stamp duty return and pay any tax due to HMRC within the required deadline, then register you as the new owner with HM Land Registry.
The Conveyancing Process for Sellers
1. Instructing a solicitor – Once you have accepted an offer, you will need to instruct a solicitor to act on your sale. We will ask for your identity documents and confirm our fees and terms in writing. We will also need evidence that you own the property, and we obtain copies of the title documents from HM Land Registry.
2. Completing the property information forms– We will ask you to complete forms giving details about the property, such as boundaries, any disputes, building work carried out and the services connected. You will also complete a form listing which fixtures, fittings and contents are included in the sale. It is important to answer these as fully and accurately as you can, as the buyer will rely on the information you provide.
3. Preparing the contract pack– Using the title documents and your completed forms, we draft the contract and put together a contract pack, which we send to the buyer’s solicitor.
4. Answering the buyer’s enquiries – The buyer’s solicitor will review the contract pack and may raise enquiries about the property. We work through these with you and send the answers back. Responding promptly at this stage is one of the best ways to help your sale progress smoothly.
5. Obtaining a mortgage redemption figure– If you have a mortgage on the property, we contact your lender for a figure showing exactly how much is needed to repay it. This is usually done before exchange, and we obtain an updated figure ahead of completion.
6. Signing the contract and exchanging– Once the buyer is ready to proceed, we ask you to sign the contract and the transfer deed. When a completion date has been agreed, we exchange contracts with the buyer’s solicitor. From this point, the sale is legally binding.
7. Completion– On completion day, the buyer’s solicitor transfers the purchase money to us. Once we receive it, the sale is complete and the keys can be released to the buyer, usually through your estate agent. You will need to have moved out by the time agreed in the contract.
8. Repaying your mortgage and receiving your proceeds – After completion, we repay your mortgage and send proof of repayment to the buyer’s solicitor so the new owner can be registered. We then transfer the remaining proceeds of sale to you.
Buying or Selling a Leasehold Property
If the property is leasehold, the conveyancing process involves some additional steps, which can add time to the transaction.
When you are buying a leasehold property, we review the lease carefully to check how many years are left on it, the ground rent and service charges payable, and any restrictions on how you can use or alter the property. We also obtain a management pack from the freeholder or managing agent, which gives details of the service charge accounts, building insurance and any planned major works. If the remaining lease term is short, it may affect your ability to obtain a mortgage, and we will advise you on whether a lease extension should be considered.
When you are selling a leasehold property, you will complete an additional form with information about the lease, and we will request the management pack on your behalf. As freeholders and managing agents can take several weeks to provide this, we recommend requesting it as early as possible.
After completion, the buyer’s solicitor usually needs to notify the freeholder of the change of ownership and pay any fees required under the lease.
Speak to Our Residential Property Team
Whether you are buying your first home, moving up the ladder or selling a property, our residential property team can guide you through every stage of the process and answer any questions along the way.
Get an instant conveyancing quote or call our Oldham office on 0161 624 5614 or our Uppermill office on 01457 371771.