 Conveyancing is the most important process when it comes to dealing with the issues related to buying or purchasing residential or commercial properties. It is also a complex process involving so much legal work.
As the process is lengthy and hectic, you might prefer to simply let others handle things for you. However, instructing a professional conveyancer to simplify the whole procedure is a wise decision and should not be taken for granted, it is equally important that you have a basic grasp of what the process entails.
To have a basic knowledge of the conveyancing process is vital for anybody who is interested in buying or selling any type of property. While on one hand it keeps you informed during the whole process, it is also important to prevent major mistakes which otherwise could occur without you even realising it.
Although most people are aware that the conveyancing process involves a lot of contract signings and exchanges, few know much beyond that.
Actually a typical conveyancing transaction has three main stages i.e. - 1) Pre-Contract, 2) Exchange of Contracts (equitable title passes), and 3) Completion.
Stage 1 – Pre-Contract
Right from the start, contracts play a huge role in the conveyancing process. This is the document that has been drafted by the seller's solicitor. It generally sets out the terms and conditions of sale. The important steps carried out at this stage are:
1. The contract is provided by the seller's conveyancers and negotiated.
2. Enquiries are made and any outstanding issues with the seller are settled such as obligations for the completion of work on the property.
3. The survey or valuation report is completed and accepted by the buyer and the lender.
4. The formal mortgage offer is received (if applicable).
Stage 2 - Exchange of contracts
When both solicitors are satisfied that their work on the contract is complete, they will ask their respective clients to sign their copy of the contract document and the mortgage deed (if applicable) and obtain any deposit to be paid.
1. A completion date for the sale is agreed which is included in the contract.
2. The contracts are exchanged.
3. Final accounts are prepared.
4. Final Land Registry searches are made.
Stage 3 – Completion
The completion date may be anything from the same day as the exchange to several months later, depending on the circumstances of the sale.
The seller’s solicitor must obtain a receipt from the seller’s mortgage lender and forward this to the buyer’s solicitor, to prove to HM Land Registry that the mortgage has been redeemed and account to the seller with the sale proceeds.
The buyer’s solicitor will send the payment of Stamp Duty to the Inland Revenue. This must be paid within 30 days to avoid penalties being imposed.
Once notification from the Inland Revenue has been received, the solicitor will proceed to register the property at HM Land Registry. Notification of registration is usually received after a few weeks. The important steps carried out at this stage are as follows:
1. Stamp duty is paid to the Inland Revenue.
2. The transfer of ownership is registered at the land registry.
3. Keys to the property are handed over.
Don't Go It Alone!
Although there are only three main stages of the conveyancing process, there are still many other steps involved which make the overall conveyancing a hectic and complex process.
As there are many others small but important things to be accomplished, it is in your best interests to hire an experienced conveyancing solicitor for assistance and to avoid falling into legal hassles. There is no doubt that a good solicitor will make your purchase quicker, less stressful and much less likely to fall through.
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