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Guide to conveyancing
More than a million residential property transactions take place in the UK every single year.
In recent years the number of deals has been bolstered by the improvement in the economy, following on from the financial crash and government initiatives such as the Help to Buy schemes.
At Reynolds Parry Jones LLP, we understand that there is a lot of information to process when you are buying or selling a home. The legal requirements can seem overwhelming at first and many people appreciate additional information about what lies in store.
With this in mind, our property team have produced this guide to the conveyancing process, offering an insight into the main steps involved and some basic principles you need to take into consideration.
It is important to note that this should be considered only as a general summary, and you should always seek expert legal advice about how the rules relate to your own individual case. If you have any questions or would like clarification about any of the issues raised in this guide, please do not hesitate to contact our experienced property team.
The four stepsA residential property transaction comprises of four stages:
1. The period prior to parties exchanging contracts2. The actual exchange of the contracts3. Completion4. Post completion formalities
The sections below will examine each of these steps in further detail.
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1 Before contracts are exchangedThe seller’s solicitor will draft a contract to transfer ownership of the property. This will then be sent on to the buyer’s solicitor to read, and negotiations will begin.
Information included in the contract will vary depending on the nature of the transaction, but typically details will include:
• The names and details of the parties concerned
• The property’s sale price
• Details about any fixtures and fittings included in the sale
• The date of completion
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Many solicitors will carry out this process utilising the National Protocol. This is a system run by the Law Society and popular with many of the UK law firms which offer conveyancing services. Within the Protocol, the draft of the contract will be sent to the buyer as part of a larger property information pack. This will also include documents including a property information form, a copy of the previous title deeds and a fixtures, fittings and contents form.
The buyer’s solicitor will need to carry out a series of checks. This helps ensure that there are not any details that have not been disclosed which may have a bearing on the buyer’s decision to proceed with the deal.
Issues that will be investigated at this stage include:
• Whether any changes to the property have the relevant planning permission
• If the property is at the centre of any ongoing disputes
• What insurance policies or relevant guarantees are in place
• If a right of way or public footpath runs through the property
• How utilities, including the gas and water supply, are accessed
• If the buyer needs to be made aware of any covenants restricting the use to which the property can be put
It may take time to finalise the contract as correspondence passes back and forth between solicitors. Once the negotiations have concluded, a completion date will have to be agreed between the parties. This needs to have been agreed before the buyer and seller can exchange their contracts.
Sometimes it is agreed that the exchange and completion will take place on the same day. That said, this may be difficult to arrange, particularly if the seller or buyer or both parties are part of a chain.
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2 Exchanging the contractsOnce the buyer and seller are satisfied with the contract that has been drafted, the parties will sign the final copies. Exchange of contracts takes place by telephone after signature.
It is very important to note that this is the point that the agreement becomes legally-binding. If either party attempts to withdraw from the deal after contracts have been exchanged, they risk being sued for breach of contract.
The buyer will need to pay a non-refundable deposit. This is typically 10 per cent of the property’s price, although a lesser amount may be negotiated.
At this stage, the buyer’s solicitors will also need to sign off the paperwork relating to the mortgage agreement and the transfer – a document which needs to have been agreed and signed by both parties.
3 CompletionOn the date that has already been agreed, the seller will release the transfer document, title deeds and the keys to the property.
The seller will receive the balance of the price of the house at this stage. This sum is the agreed price minus the non-refundable deposit that has already been paid.
4 Post completionIssues that may still need to be dealt with at this stage include:
• Informing the freeholder and mortgage lender that the transaction has been completed
• Paying the Stamp Duty
• Making contact with the Land Registry to register the transfer of ownership. Official copies of the updated title will be sent to you and can be safely held at our offices free of charge until you’re ready to deal with the property again
The buyer and seller receive a statement of completion from their respective solicitor, including a summary of the relevant financial transactions.
Contact Us Purchasing a new home for you and your family can be a stressful experience, whether you are a first time buyer or you are moving on to another property. However, you can be sure that our experienced residential team will have encountered most of the issues that arise before and will be able to advise on the best way forward.
If you need advice from our residential property team, please do not hesitate to contact us.
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Our Conveyancing TeamThe information in this leaflet is intended as a guide only and does not constitute legal advice. We would be pleased to answer any questions or give legal advice relating to any of the matters raised in this guide. Please don’t hesitate to contact a member of our Conveyancing Team today.
Carole PageAssociate
Carole joined the firm in September 2014, having previously worked for a firm in Chesham since 1988. Originally employed there as a legal secretary, she was determined to become a fee-earner and embarked on a correspondence course to become a legal executive, a qualification she achieved in 2000. Carole was appointed as an Associate of the firm in April 2017.
01494 525941
Shaz HafeezSenior Solicitor
Shaz Hafeez joined Reynolds Parry Jones LLP in February 2019 as Senior Solicitor in the Residential Property Department. Shaz graduated from De Montfort University in Leicester with a Law degree (LLB with honours) and qualified as a Solicitor in London in 2004.
01494 525941
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Gillian HumphreysConsultant
Gillian is a Consultant in the firm. She was educated at Southampton University from where she graduated with an LLB honours degree. She later studied for the Law Society professional exams at The College of Law in Guildford. She joined the firm as an articled clerk in 1970, qualifying as a Solicitor in 1972.
01494 525941
Ella May FosterSolicitor
Ella-May Foster joined Reynolds Parry Jones in 2016 as a paralegal after graduating from Bangor University with a first class degree in Law. She then completed her Legal Practice Course (LPC) – the vocational stage of training to qualify as a solicitor – at BPP University in London whilst completing her Training Contract with Reynolds Parry Jones. Ella-May qualified as a Solicitor in October 2019.
01494 525941
www.rpj.uk.com
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