The following is an overview of the residential conveyancing, property conveyancing and house conveyancing process.
Conveyancing is the legal process of transferring property ownership and on average, property conveyancing takes between 6 to 8 weeks to complete from giving instructions to moving in. Being in a chain can slow things down as the whole chain can only move as fast as the slowest link. Below is a breakdown of the key stages in the residential conveyancing process.
STAGE 1 – sale agreed
Seller’s solicitor
- Asks the seller to fill in enquiry forms
- Checks title and drafts Contact
- Sends Contract to purchaser’s solicitors with accompanying documentation
- Answers any additional enquiries buyers solicitors may have
- Negotiates the completion date and prepares to exchange
Buyers Solicitor
- Receives contract and supporting documentation raises Additional Enquiries
- Carries out local authority search and other searches as required
- Receives mortgage offer, if any
- Approves Contact and submits contract to buyer with full Property Report for signature and requests deposit
At this stage, either party is still able to withdraw from the transaction, even if the contract has been signed.
STAGE 2 – exchange of contracts
Seller’s solicitor
- Formally exchanges Contracts receives the buyers deposit
- Obtains a settlement figure from your lender to redeem the mortgage
- Approves the transfer deed and arranges for client to sign
Buyer’s solicitor
- To complete exchange sends contract and deposit to seller’s solicitor
- Prepares transfer and mortgage deed and sends them to the buyer to sign
- Arranges final searches
- Prepares final accounts and requests monies, if required
The exchange of contracts is a key stage during the property conveyancing and marks the stage in the transaction at which a binding contract is formed and neither party can withdraw without incurring the financial liabilities stated within the terms of the contract. Normally a 10% deposit is paid to the seller’s solicitors, which is retained by them until completion.
If the buyer withdraws from the purchase, the seller can forfeit the deposit and retain the money. If the seller withdraws, the buyer’s solicitor may apply to the court for an order forcing the seller to complete and bring court proceedings for breach of contract.
There is usually a period of 10-14 days in between exchange and completion to allow the purchaser’s solicitor sufficient time to obtain the necessary funds from the buyer and/or mortgage lender and for the seller’s solicitor to obtain a redemption figure from the seller’s lender.
STAGE 3 – completion
Seller’s solicitor
- Receives balance of purchase price
- Pays off the mortgage
- Hands over the deeds
- Sends client the balance or uses this towards a purchase
Buyer’s solicitor
- Sends balance to sellers solicitor and receives deeds
- Pays stamp duty (if any)
- Registers purchase at Land Registry
- Sends deeds to Bank or Building Society where required
The buyer’s solicitor will telegraphically transfer to the seller’s solicitor the money required to complete the transaction. Once received, the seller’s solicitor will notify the buyer’s solicitor and estate agent to authorise the release of the keys to the buyer. The seller and buyer will then be notified that completion has taken place so they can make their respective moving out and moving in arrangements. Completion usually takes place by early afternoon.
If you have any questions about residential conveyancing, property conveyancing or house conveyancing, please email or call us on 01707 640990.
Q&A Law Conveyancing is a specialist online conveyancing service.