What are the key steps in the conveyancing process?
Answer: The conveyancing process can be divided into five essential stages:
- Onboarding and Background Checks: We will conduct onboarding procedures, which include necessary background checks. This step involved verifying the source of funds, a legal requirement before proceeding with any property transaction.
- Contract and Title Review: Once background checks are clear, we will review the contract and title documents to ensure that there are no issues or discrepancies that could affect your purchase. We then report to you on the title and provide you with the related documents we have reviewed.
- Exchange of Contracts: This pivotal stage involves the formal exchange of contracts, at which point you will pay your deposit. Once contracts are exchanged, the agreement becomes legally binding, and both parties are committed to the transaction and a completion date is set for you to collect your keys.
- Completion: On completion day, ownership of the property officially transfers to you. You will pay the final balance to the seller, and you will receive the keys to your new home.
- Post-Completion: After completion, you will be responsible for paying any applicable Stamp Duty Land Tax. We will handle the submission of this tax and registration of your ownership with the Land Registry to ensure that your title is officially recorded in your name.
How long does the conveyancing process take?
Answer: The duration can vary based on several factors, such as the property type, any chain involved, and local authority processes. On average, it can take between 6 to 12 weeks, but it may be longer in complex situations.
What is the difference between freehold and leasehold properties?
Answer: A freehold property means you own the property and the land it stands on outright, giving you full control. In contrast, leasehold means you own the property for a specific period but not the land. You’ll often need to pay ground rent and almost always service charges. It’s essential to understand these differences when purchasing to know your rights and obligations. The differences between the two are outlined in our engagement letter and if you are purchasing leasehold, our report to you will go into detail on your rights and obligations under the lease you wish to purchase.
I am happy to proceed. What do you need from me to start the process?
Answer: To initiate the conveyancing process, we need final terms of sale, often referred to as the sales memo, from your estate agent or the reservation form detailing the terms of your transaction. Once we receive this information, we will create your file and guide you through the initial steps.
Does your retainer include tax advice?
Answer: No – although we provide some advice regarding calculation of your Stamp Duty Land Tax and assist you with your submission. We have a dedicated Tax Team that can assist you with further specialist enquiries as may be necessary.
I have agreed an incentive with my seller. How does this work?
Answer: Any incentive will be deducted from the final balance due to the seller on your completion. We are fully independent and so any incentive you have agreed will not work as a credit to your account with us.
Do you recommend I use a surveyor?
Answer: Yes, we strongly recommend using a surveyor, even when purchasing a new build property. A survey can identify defects or issues that need addressing before you finalise the sale. It’s best to conduct this survey before the exchange of contracts so that any findings can be raised with the seller, allowing for negotiations or repairs to be arranged as part of your transaction.
What are property searches, and why are they important?
Answer: Property searches are investigations conducted to uncover important information above the property and its surroundings, such as planning permissions, local authority issues, and environmental risks. These searches are crucial as they help identify potential problems that could affect your decision to proceed with the purchase. You don’t have to order searches if you are purchasing without a mortgage, but in most cases we would recommend them so you can have a more holistic view of the purchase and factors that may affect the property.
When should I apply for financing?
Answer: Timing is crucial when it comes to securing financing. Ideally, you should have your mortgage offer in place before the exchange of contracts, as this ensures you can proceed without the risk of no financing on your completion date. If your completion date is several years away–such as when buying off-plan–it’s advisable to speak with a mortgage broker early in the process. This way, you can understand your options and get pre-approval before committing to the purchase.
What happens on completion day?
Answer: On completion day, the final payment for the property is transferred to the seller’s solicitor, and ownership if officially transferred to you. You’ll receive the keys to your new home, and we will handle the registration of your ownership with the Land Registry. It’s an exciting day!
If you have any further questions, please contact our Residential Real Estate team via the link below.
