Buying or selling a home is a significant milestone – probably the largest financial transaction most people ever make. With so much at stake, understanding the legal process is essential to make informed decisions and avoid potential pitfalls. A key step in the conveyancing journey is enlisting a qualified solicitor. A solicitor is your legal representative, guiding you through the complex process and safeguarding your interests throughout the conveyancing transaction.
What is conveyancing?
Conveyancing is the legal and administrative process of transferring property from one party to another. Solicitors and conveyancers in the United Kingdom generally use the Law Society Conveyancing Protocol as the ‘preferred practice’ for buying and selling homes.
The conveyancing process typically begins when an offer has been made by a buyer and accepted by the seller and each party’s respective solicitors become involved.
Considerations when selling a residential property
Estate agent
Most sellers use an estate agent to value their property and put it on the market. The agent facilitates property inspections with potential buyers, takes any offers made and presents them to the seller. A reputable agent can advise you on market conditions and recommend the method of sale that best suits your needs, whether that be on the open market or auction.
Mortgages
If your property is mortgaged, you will need to contact your lender to determine how much is required to pay out the loan on settlement or arrange to transfer the loan/mortgage to another property.
Property information
You will need to have specific information about the property to provide to prospective buyers, for example:
- Property Information Form, also known as the TA6, which provides essential information including property boundaries, any disputes, environmental concerns, insurance, parking, utilities and services, and alterations. Your solicitor can help you prepare the TA6.
- Energy Performance Certificate (EPC), which rates the property’s energy efficiency on a scale from A (most efficient) to G (least efficient).
Title deeds
The Land Registry maintains official records of property ownership – your solicitor will conduct searches to verify your ownership and ensure there are no outstanding legal issues that could impede the sale.
Negotiations and exchange
If you receive an acceptable offer for your property, you can formally accept it. However, the sale is not binding at this stage. The buyer’s solicitor will arrange for searches and review the property’s title.
The seller is responsible for preparing the contract to transfer ownership of the property. The contract includes details of the parties, the agreed price, property information, the completion date and the fixtures and fittings included or excluded in the sale.
The exchange of contracts marks the point where both parties are legally committed to the transaction. Your solicitor will handle the contract exchange process, ensuring all legal requirements are met and your interests are protected.
Completion
Completion is the final stage of the property selling process, where the ownership of the property is officially transferred from the seller to the buyer. The property should be vacant by the completion date unless otherwise agreed.
On completion day, the balance of the purchase price is transferred, and the keys are handed over to the new owner. Your solicitor will oversee the completion process, ensuring all legal and financial matters are finalised correctly.
Considerations when buying a residential property
Finance & research
Before making an offer, you should have your finances in order. Unless you are a cash buyer, a mortgage agreement in principle demonstrates your borrowing capacity to estate agents and sellers.
Researching and understanding the current market can also help you make informed choices when searching for your dream home or investment property.
Negotiations
Once you have found a suitable property, you can make an offer through the estate agent. Negotiations will likely follow until a price is agreed.
Once your offer is accepted, you should instruct your solicitor or conveyancer. Your solicitor will conduct essential title checks and searches, including local authority searches, water and drainage, and environmental searches. Your solicitor will review the draft contract, explain the terms and conditions, and raise any necessary enquiries with the seller’s solicitor.
Your solicitor can also arrange for any required surveys to be carried out, whether a basic condition report or a full structural survey. For peace of mind, a full building survey by a RICS surveyor is often recommended. This is a detailed report on the structure of the property that should flag any issues of concern.
Exchange of contracts
Exchange of contracts is when the arrangements become legally binding. You will need to pay a deposit (typically 5-10% of the purchase price) and a completion date will be agreed.
Completion
Completion is the final stage. Funds are transferred to the seller, ownership is officially transferred and registered at the Land Registry, and you receive the keys to your new home!
After completion, you’ll need to pay Stamp Duty Land Tax (SDLT) and your solicitor will register the mortgage with the Land Registry.
If you need help with your next property transaction, please call 0151 662 0345 or email [email protected] for friendly service and expert conveyancing advice.