Conveyancing Explained: A Step by Step Guide to the Process

Conveyancing is the legal stage in the transfer of property ownership where the title of the property legally changes hands and all the relevant statutory parties are informed. It is a required stage and without it no property can change ownership and be legally binding.

The process is generally divided into six key stages, and at each stage, there are specific actions required from the clients (Buyer and Seller), the solicitor, and any third parties involved such as mortgage lenders.

Let's break down these stages and the associated actions.

1. Instruction and Initial Stage

• Client:

  Choose a conveyancing solicitor and provide them with your personal details, details of the property, and how you will be funding the purchase (e.g., mortgage, cash or including help-to-buy). You will also need to provide identification documents to the solicitor.

• Solicitor:

  The solicitor will confirm the instructions with you, detail the costs involved (any fees plus disbursements), and provide you with an initial pack to complete. They will also conduct the necessary identity checks from the documents that have been provided.

• Third Party:

  If you're buying, your mortgage lender or broker will be involved in confirming your mortgage offer details including the amount and the lender.

2. Pre-contract Stage

• Client:

  Complete any forms sent by your solicitor, such as a property information form if you're selling, and a fixtures and fittings form. If buying, you may need to apply for a mortgage if you haven't already got this sorted.

• Solicitor:

  The buyers solicitor will conduct searches on the property, review the draft contract, raise inquiries with the seller's solicitor, and advise you on all documents and information received. They will also liaise with your mortgage lender.

• Third Party:

  The seller’s solicitor prepares the draft contract and supporting documents and responds to any inquiries. Mortgage lenders will process your application if you're buying.

3. Exchange of Contracts

• Client:

  The buying client must ensure they are satisfied with the contract and any mortgage offer, and arrange the deposit. Both buyer and seller must also decide on a completion date that is agreed by both parties.

• Solicitor:

  Both Solicitors will exchange contracts on behalf of the clients, which legally binds both parties to the transaction. The buyers solicitor will also handle the deposit transfer.

• Third Party:

  The mortgage lender will ensure the mortgage offer is finalized and ready for the completion date so that funds can be transferred in line with the other legal changes happening.

4. Pre-completion

• Client:

  The buying client will most likely need to purchase building insurance for the new property, this is often part of any lending criteria and just good practice to protect the asset you are purchasing. The selling client should be starting to fully vacate the property if they have not done so already.

• Solicitor:

  The buying solicitor will prepare the final accounts, carry out pre-completion searches, and ensure all financial arrangements are in place for completion.

• Third Party:

  Mortgage lenders will prepare to release funds to the specified account on the specified date.

5. Completion

• Client:

  On completion day, the buyer can collect the keys to their new home once the purchase has completed. If selling, you should vacate the property and hand over the keys. This can be done in person or using a third party. it is recommended the Seller take meter readings at the property so they can finalise any bills with accuracy. It is also recommended the buyer does the same thing as they enter the property to ensure they pay for the the services they use and not any previous services used by the previous owner.

• Solicitor:

  The buyers solicitor will transfer the purchase funds to the seller’s solicitor and ensure the transaction is completed. After completion, the buyers solicitor will deal with payment of Stamp Duty Land Tax and register the property in your name with the Land Registry.

• Third Party:

  Mortgage lenders will have released the funds for the purchase and will be setting up the direct debit for the upcoming payments.

6. Post-completion

• Client:

  The buyer should now be in possession of their new home and the seller have the proceeds from the sale. Both parties need to complete any relocations and address changes.

• Solicitor:

  The buyers solicitor will ensure that the property is registered in the buyers name at the Land Registry and deal with any final details, such as forwarding on the final documentation. The sellers solicitor will also provide a closing account of the transaction and will have most likely already deducted their fees from the property funds when they transferred the funds.

• Third Party:

  Their should be no other third party actions.

General Advice

Throughout this process, communication is key. Both parties should keep in regular contact with their solicitors and promptly respond to any requests for information or decisions to keep the process moving smoothly. Delays can often be reduced by having all your documents in order and being proactive about the steps you need to take.

The time taken from starting the process has now reached over four months on average in spite of continued advancements in digital tools. Here at Moove we will be on a mission to dramatically reduce this time.