Step by Step guide to the conveyancing process

THE LEGAL SIDE OF BUYING A HOME
Both Buyers and Sellers instruct Solicitors in the course of the conveyancing process. A Seller's Solicitors would follow steps at the other side of your transaction.

The conveyancing process normally takes 8-12 weeks from the date of draft documents from the Seller’s Solicitor. However, much depends on co-operation between the parties, as information and documents need to be exchanged quickly in order to achieve Completion.
There are a number of stages in the conveyancing process that must be reached.
In order to be in a position to move into your property you must satisfy the following requirements:
1. Searches – Receiving clear search results.
2. Supporting Documentation – Contract, Title Deeds and Enquiries.
3. Mortgage Offer – Signing the Mortgage Deed with all offer conditions satisfied.
4. Contract – Signing the Contract and paying the deposit.
5. Exchange of Contracts – Fixing a Moving-in Date.
6. Completion – The Moving-in Date.

1. SEARCHES
LOCAL SEARCH
These are sent to the Local Authority and will reveal such matters as:
(a) Enforcement notices (b) If the property is subject to outstanding conditions in respect of improvement grants (c) Planning permissions (d) If the highway is publicly maintained.
The results of these searches can take anything from a few days to several weeks to return (dependent on Local Authority workloads). Almost always it is necessary  to have a plan of the property before sending for your local searches. This comes from the Seller’s Solicitor, normally when he/she has received the Seller’s Title Deeds.

2. SUPPORTING DOCUMENTATION
From the Seller’s Solicitors:
(a) A Contract
The Contract will state the Seller’s and Purchaser’s names and addresses, a description of the property, the purchase price and any special conditions that apply to the sale.
(b) A copy of the Title Deeds
It will be checked that there is good title to the property for you and your Mortgage Lender.
(c) Replies to Enquiries before Contract.
These are questions asked of the Seller about the property, normally at the same time that the report is sent to you on the papers. Examples are “Does the Seller know of any disputes?”; “Is there an indication of who owns the boundaries?”; “Have there been any alterations to the property requiring planning permissions?” The Seller will also supply a list of fixtures and fittings, stating what is to be left/removed from the property on completion. If the property is leasehold, you will need the Seller’s Solicitor to provide additional information from the Landlord or Management Company. This information is often detailed and will have to be comprehensive. Please note however, it is still your responsibility to make sure the property is physically sound and to have all the necessary surveys and checks carried out.

3. MORTGAGE OFFER
On receipt of the mortgage offer, or copy of the mortgage loan agreement, the mortgage will either be sent to you for signature or you will be asked to attend a short appointment to sign it. Your conveyancer will work with your Mortgage Lender in order to satisfy any special terms of the offer, which relate to legal title matters. They may also need to raise specific points as the transaction progresses and any occupiers may need to sign an additional form.
INSURANCE. One major requirement of the offer is for you to ensure that satisfactory life insurance and buildings insurance arrangements exist. It is also advised that you arrange for contents cover.

4. CONTRACT
In cases where you are corresponding by post, your solicitor will send the Contract to you as soon as possible, with their report on the Contract documents. They will also ask you for a deposit, based on the information to hand, including your replies to their Client Enquiry Form. This is requested at an early stage as any monies received from you by cheque during the transaction take up to 6 working days to clear. This avoids frustration and delay at the crucial stage of Exchange of Contracts.

5. EXCHANGE OF CONTRACTS
This is the stage when a moving-in date is fixed. When all the signed documents are received and all questions have been answered, your solicitor will then be in a position to progress to Exchange of Contracts. They will first need to verify that the Seller is ready to exchange with you and this will very much depend on whether there is a related transaction, or chain of transactions. They will always endeavour to have you ready at the earliest opportunity, but you will appreciate that unless the Seller is prepared to move out for you then you will be linked to any other transaction above you.

Any date needs to be agreed between all parties in a chain and then exchange can take place. When Contracts are exchanged, both parties are bound by the agreement and have to proceed on the agreed date.

You will normally pay 10% of the purchase price to the Seller as a deposit, though sometimes a reduced deposit can be paid, i.e. if you are having a 95% Mortgage. The Seller’s Solicitor normally holds the deposit in a neutral account until the completion date. Once you are committed, your deposit and a liability of up to 10% of the price will be forfeit if you break the Contract. Other costs can also become payable by breaking the Contract.

Please note that you will need to ensure that Life Insurance (LINS) and Buildings Insurance (BINS) are brought into force from Exchange of Contracts.

PRIOR TO COMPLETION Following exchange both parties your solciitor we make their final arrangements. The sections below outline the matters they must satisfy before completion can take place:
(a) Transfer Deed and Requisitions on Title
Final Questions (“Requisitions on Title”) will be submitted to the Seller’s Solicitors, together with the Deed of Transfer for approval. The Transfer Deed is the document
that transfers the property from the Seller to you and is also a receipt for the purchase money paid.
(b) Pre-Completion Searches
A bankruptcy search will be carried out against your name(s). This will show any matters that may affect the mortgage advance. A clear search is required to proceed
to completion. A final search is also made against the Seller/their land.
(c) Mortgage Advance
Prior to completion the mortgage advance monies will be requested from your Mortgage Lender. They need cleared funds from your Mortgage Lender in order to
complete. Lenders require anything up to 7 working days clear notice that the monies are required and this will sometimes influence the completion date they are able to agree for you.
(d) Shortfall
Your solicitor will collect any balances required from you in order to complete the transaction, together with the amount payable for our fees and disbursements, including Stamp Duty if applicable. They must have cleared funds in order to complete.

6. COMPLETION
This is when you can move into the property. The balance purchase price will be forwarded to the Seller’s Solicitors by telegraphic transfer on the morning of completion and upon receipt they will send to your solicitor the following:
(a) Transfer Deed, signed by the Seller and dated with the date of completion (this will then be sent to you to sign. It is very important that you return this to them within 5 days of receiving it. Late stamping penalties and extra costs could be incurred if you fail to do so).
(b) Title Deeds.
(c) If there is an existing mortgage on the property, a promise to repay it with proof of repayment as soon as possible.

FOLLOWING COMPLETION. Following completion, all other outstanding issues will be dealt with, including:
(a) Stamp Duty
If the purchase price is over £125,000 the Transfer Deed will have to be submitted to the Inland Revenue and Stamp Duty paid at 1% of the purchase price up to £250,000, 3% for over £250,000 and up to £500,000 and 4% for over £500,000.
(b) Registration
When the Transfer Deed is received back from the Seller’s Solicitor duly stamped, it will be submitted to the Land Registry, together with the Title Deeds, Sellers previous mortgage discharge form (that is proof of repayment of previous mortgage) and Mortgage Deed for registration. Once the completed registration is received the deeds will be scheduled and sent to your Mortgage Lender.