If you are a buyer or seller of property, you will be involved in conveyancing in one way or another.
Conveyancing refers to the legal elements in a transfer of property ownership, but what exactly does that mean? What are the steps involved? How long does it take? And how much does it cost?
Those are among the common queries that we’ll address in this condensed guide on conveyancing.
What is conveyancing?
As we’ve outlined already, conveyancing refers to the legal process of transferring ownership from a seller to a buyer.
Stages include property searching, the drafting of contracts, exchange of contracts, and submitting the Transfer Deed to the Land Registry.
The process is managed by conveyors – these are professionals trained to oversee the transaction and make sure that it meets the necessary legal requirements.
What does conveyancing mean?
As the legal process of property ownership transfer, conveyancing is vital to residential and commercial property sales.
The practice of conveyancing is part of property law, and both the buyer and the seller will communicate with a conveyancer as part of the procedure.
What are the steps in the conveyancing process?
Conveyancing comprises several key steps on the path to the transfer of property ownership. These include:
Instruction
After a formal Letter of Engagement has been received from the conveyancer of the buyer, they will review the terms and conditions – including fees – before accepting and making a payment. This represents an instruction from the buyer to the conveyancer to oversee the legal process of the ownership transfer.
Property searches
The seller’s conveyancer will pass on relevant property information to the buyer’s conveyancer, who will conduct property searches to look for any potential problems. Searches may be conducted in relation to water, drainage, and the local authority, to check for any legal or environmental issues.
Review of documentation
The buyer’s conveyancer will review relevant documents to confirm the legal ownership of the property and check for any related obligations. Documents may include title deeds and leases.
Raising enquiries
Raising enquiries refers to the buyer’s conveyancer seeking any confirmation or supplementary information that is needed from the seller’s conveyancer – this is in relation to the information already gathered.
Financing
The buyer’s conveyancer will work with lenders such as mortgage providers where necessary to confirm financing arrangements and prepare required documentation.
Exchange of contracts
Both parties must be ready, with all enquiries satisfied, before contracts can be reviewed and exchanged. It will be the buyer’s conveyancer who reviews the draft contract and works through any amendments needed. After terms are agreed, contracts will be exchanged and the buyer and seller become legally bound to the transaction.
Pre-completion and completion
It’s the responsibility of the buyer’s conveyancer to carry out final searches and manage the transfer of funds for the property sale. This is known as the pre-completion stage.
A date will be agreed upon for the completion of the ownership transfer. On this date, the buyer’s conveyancer will transfer funds to the seller’s conveyancer and release the keys. The property has now officially changed ownership.
Post-completion
After the transfer of ownership is legally complete, the buyer’s conveyancer will submit the Transfer Deed to the Land Registry. If applicable, Stamp Duty Land Tax will also be paid by the buyer’s conveyancer.
How long does the conveyancing process usually take?
A conveyance typically takes between 8 and 12 weeks to complete.
What does a conveyancer do?
A conveyancer is essentially a navigator of the legal aspects involved in a property ownership transfer.
These trained professionals can help buyers and sellers to avoid legal issues and guide the process of buying or selling a property.
Whether it’s inaccuracies in documentation or financial claims (encumbrances) related to the property – it’s a conveyancer’s job to identify and circumnavigate potentially costly issues.
How much does conveyancing cost?
The cost of conveyancing will vary; according to the value of a property, whether you are a buyer or seller, and if property is a leasehold (the property is owned for a set period) or freehold (the property and land are owned indefinitely).
In the UK, you can expect fees to fall in the region of £850 to £2,500, excluding VAT.
If you’re interested in talking to conveyancing solicitors in North Wales, Bennett Smith is here to guide clients through all aspects of residential property ownership transfers. Get your conveyancing quote from us today by pressing the button at the top of our site.
