NB the conveyancing process is quite different if you buy a property at auction – click here to find out how auction conveyancing works.
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THE CONVEYANCING TIMELINE
Prior to placing an offer on a property you must check your finances and ensure that your mortgage offer covers the amount your are proposing to pay. You then go ahead and place an offer on the property and it is accepted by the other side.
Remember, if you have a mortgage then you cannot normally rent a property out without the permission of your lender. Don’t assume this is automatic. They will normally only consent to this provided that a proper tenancy agreement is entered into which adheres to their requirements.
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View the property on more than one occasion.
Before making an offer on a property, it is always important to consider whether or not the property is right for you. Do your research and don’t just rely on one viewing. Seeing a property in daylight, when you have previously viewed it at night time, can show up all sorts of problems.
When making an offer you should consider whether there are any fixtures and fittings that you would like to stay at the property. As part of the negotiation process you may wish to make an offer based on certain items (e.g. carpets and curtains) being included in the price.
Appoint a property solicitor. Your estate agent will want the details of your law firm when your offer is accepted by the other side. If you choose your solicitor before you start looking for your new home, you won’t have to rush your decision when you find a property.
If you are buying a property together with your spouse, family member friend or partner make sure your solicitor knows from this early-stage.
Click here to read more about the differences between types of joint home ownership – and find out what’s right for you
Your conveyancing solicitor will request contractual information from the seller’s solicitors. These include basic questions about the property and questions about important factors such as boundaries, any existing disputes between the seller and their neighbours. Additional questions may be needed. For example, if the seller has just had a new roof fitted your conveyancing lawyer may ask if the guarantee will still be valid when you move in.
At this point the seller will make your solicitor aware of any fixtures or chattels that are included in the purchase price.
N.B. Make sure you tell your solicitor if you have plans to extend the property
It is often assumed that only planning permission and building regulations approval is required for any proposed extensions. However, if any building work is within a certain distance of the boundary to your property then you will need to comply with the Party Walls Act and serve the appropriate notices on your neighbour.
Furthermore you should check if there is a restrictive covenant against your property which may prevent such work being undertaken or may require you to obtain the consent of a former landowner such as the developer. If you are considering making alterations to the property, then you should inform your solicitor who will be able to advise you on the possible issues.
Your solicitor will proceed to complete all pre-contractual searches for the property, such as a Local Authority Search and Official Copies search at the Land Registry. These can take up to 3 weeks to be returned, any problems raised by these searches will then be fed back to you with solutions proposed by your solicitor.
Local searches should reveal any relevant issues involving the local authority which may affect the property such as whether or not it has a compulsory purchase order as well as any current or proposed changes in the area that could impact your property such as changes to houses or roads nearby
Checking the Local Land Charges Register will also find out, for example, whether the property is a listed building or in a conservation area.
It is at this stage that you need to consider whether to have an independent survey of the property.
Your lender will insist on a survey of their own called a Homebuyer’s Report. This is not the same as a full building survey. In our opinion, far too many people rely on the homebuyer’s report when they should be paying for a full survey.
Why? The mortgage lenders survey only really looks into the value of the property and whether it will cover the mortgage. In contrast a professional survey carried out by an experienced chartered surveyor will help you to determine the true value of the property and work out if there are any structural defects or problems which you should know about before buying your new home. Any problems found with the property can then be reflected in the purchase price and saves you getting stung for restoration costs in the future. Our strong advice is that you should have a full survey completed before you sign any contract.
We regularly deal with plenty of reliable local surveyors and are happy to introduce you to one of them.
A copy of your formal mortgage offer should be sent through from the bank/building society to your conveyancing solicitor.
Check the terms and conditions of the mortgage offer to ascertain any special conditions set by the Lender, such as work to be carried out on the property before the money will be released.
The solicitor will then receive a draft copy of the contract of sale from the other side. Any prior negotiations on price in respect of fixtures, chattels and search results will be reflected in any changes made to this first draft of the contract.
Your solicitor will show you the final version of the contract and ensure that you are happy with all the provisions. Once this is agreed upon, a date for exchange can be set; exchange is a formal process completed between your solicitor and the seller’s solicitor.
Always remember that you can withdraw from a transaction at any time before contracts are exchanged and that there is normally NO obligation to pay any fees to the other side whatsoever.
Arrange appropriate buildings and contents insurance to cover the property between exchange and completion. Why? When you exchange contracts with the seller, you obtain responsibility of the house – the risk passes from the seller to the buyer. Exchange of contracts will then take place between the two solicitors and the deposit money (which should be held by your solicitor on your behalf) is paid over to the seller.
The contact is now legally binding. If you pull out of the sale you will more than likely lose your deposit.
N.B You don’t have to take out buildings and contents insurance with your lender. Your mortgage lender will often try to sell you various products with the mortgage such as buildings and contents insurance. We recommend that you take proper independent advice on insurance and shop around for the most competitive deals.
Both parties should agree upon a date for completion of the sale. Your solicitor will request the remaining mortgage monies from your lender and hold these in the firm’s client account ready for transfer. In the meanwhile they will draft the final purchase deed (TR1 form) ready to send to seller’s solicitor.
When you are dealing with a residential chain it is often better not to try and attempt exchange of contracts and completion simultaneously.
NB Some clients ask why exchange and completion cannot be done at the same time. It is certainly possible and on rare occasions practical. However, although same day exchange and completion would save time in theory, it works on the basis that both parties will have the necessary security (funds) to proceed with the transaction. If your buyer is selling their own property and their buyer pulls out of the transaction late or reduces their offer, this may leave them unable to complete the purchase of your property. This same principle applies to you when you are buying another property as well as selling. Be prepared to wait a little longer for the transaction to complete in a residential chain.
At this stage you can organise a date for your removal company. Do not organise a date for removals until your solicitor confirms a purchase date. This will prevent you having to cancel and losing your removals company slot to someone else.
At this point it is important for your solicitor to do some pre-completion searches and lodge a freeze on the official copies for the property. Your solicitor will also submit some requisitions on title to the seller’s solicitor in order to confirm information such as; how and where you pick up the keys to the property. They will receive answers to these requisitions along with a completion statement from the seller’s solicitor to indicate how much money is outstanding on the sale.
Your solicitor will forward you a conveyancing completion statement indicating how much money you owe before the sale can be completed. This financial statement will take into consideration any costs incurred by the solicitor (disbursements), the solicitor’s fees, any deposit money paid, mortgage money received, stamp duty land tax owed and registration fee.
You will then have a set period of time to pay the outstanding costs in order for completion to take place.
Your solicitor will also request that your mortgage advance in sent through in sufficient time for completion.
Your solicitor undertakes to send across the funds needed to complete the purchase and the seller’s solicitor undertakes to discharge any outstanding mortgage owed on the property with the money received. This ensures that you do not take the property subject to a legal charge i.e. the seller’s mortgage, hanging over it.
The home is now yours.
In order to finalise the purchase, your solicitor will pay any Stamp Duty Land Tax [SDLT] owed and register the transfer with the Land Registry. The mortgage deed will be dated accordingly.
Move in to your new home!
You should also ensure that all service meters are read on the date the seller moves out of the property. This will help to ensure that future bills are accurate and any disputes are avoided.
Need a conveyancing quote? Call our specialist team on FREEPHONE 0800 1404544 or one of our four local numbers for a bespoke quote – and an answer to any questions you have about buying your home – with no strings attached – wherever you live in England and Wales.
Click here to read more about how our conveyancing solicitors can help you with a stress free property purchase.