The legal process of selling and buying a property is known as conveyancing. Each sale and purchase usually follows the same steps but with various ups and downs in between. The following is an overview of the basic steps involved:
- You instruct a Solicitor to act on your behalf. They will require your identity documents and your proof of funds if you are buying a property.
- The Seller’s Solicitors will need proof that you own the property and will also require sight of your identity documents and copies of your title documentation; you will need to complete various forms with information about the property and will also need to provide a list of the content being sold. Your Solicitor will then draft the Contract and prepare a Contract pack and send this out to the Buyer’s Solicitors.
- The Buyer’s Solicitors will review the contract pack and raise any pre-contract enquiries that they feel are necessary (as each property can present unique factors). At this stage, searches are usually requested from relevant authorities such as the Local Authority, Water Authority, Coal Authority, and Environmental authorities. The Buyer’s Solicitors will also review any legal issues flagged by their Surveyor.
- When the Seller’s Solicitors receive pre-contract enquiries, they liaise with their client and respond to the Buyer’s Solicitors.
- When all enquiries are satisfied and search results and the mortgage offer (if not a cash purchase) have been received, then the Buyer’s Solicitor will report to their client in full and both parties are asked to sign the legal documentation in anticipation of exchange of Contracts.
- Once a completion date is agreed and both parties have signed the legal documents and the buyer’s Solicitors hold their client’s deposit, then both parties can exchange Contracts and fix the agreed completion date. Once Contracts are exchanged this does mean the completion date is fixed and can only be changed by mutual agreement.
- The Buyer’s Solicitors request mortgage funds from the Lender in good time for completion, where applicable, and also request any balance due from the client to be transferred to their client account.
- The Seller’s Solicitor obtains an up-to-date redemption figure for any current mortgage (if not already obtained prior to exchange of Contracts).
- On the day of completion, the buyer’s Solicitors transfer the balance purchase funds to the Seller’s Solicitors. Once they receive the funds completion has then taken place and the Buyers can obtain their keys, usually from the Estate Agent who has acted in marketing the property.
- Following completion, the Buyer’s Solicitors pays any stamp Duty to the Inland Revenue and arranges to register their client’s ownership of the property at the Land Registry. The Seller’s Solicitors repays any mortgages which are against the Property and provides proof of repayment to the Buyer’s Solicitors.
For further information and guidance, contact a member of our Residential Property team and we will be happy to assist you.
