In this easy to follow Quick Property Sale guide, we layout what is involved in purchasing a property. With almost 1 in 4 of property purchases on average falling through nationally every year – it can be a stressful and uncertain journey.

What is Conveyancing?

Conveyancing is an essential part of buying a home and involves the legal transfer of property ownership from the vendor/seller to you, the buyer. In a nutshell, the conveyancing process begins when your offer on a house is accepted and ends when you receive the property keys. The conveyancing process usually takes around 12 -16 weeks.

What happens first?

To buy a home you will need a mortgage, unless you are able to pay for it outright. Before you start shopping around for your new home you will need to arrange a suitable mortgage. Using a broker will give you access to the mortgage market. You can apply for a mortgage once you have presented your ID and passed all the relevant credit checks etc. Having succeeded with your application you will be given a ‘Decision in Principle.’ A DIP is not a valid mortgage offer but having it arms you with a mortgage product and demonstrates your ability to be able to purchase the property to both the seller and their estate agent.

Alternatively, you can apply for a mortgage after you find a property. However, this will slow down your property purchase.

The Conveyancing Stages

As soon as your offer has been accepted you will need to appoint a conveyancing solicitor. If you can, try to instruct a solicitor beforehand, even if you have not found a property yet (please read our home viewing checklist). The preliminary formalities of setting you up as a client can be completed and payment on account can be made. On client engagement you should be given the solicitors ‘starter pack’. It is important that you read this. Then, once your offer has been accepted, the legal process can begin without delay.

Choosing the right conveyancer

Tip: Source a solicitor who can offer a ‘no move, no fee’ service. That way if you eventually decide not to go ahead with the purchase you will not be liable for any costs. Alternatively, go for a ‘fixed fee’ basis whereby your bill can be capped (with the exception that you may incur standard sundry charges). Check for any costs that might be applied, even if your property purchase is completely standard.

Pick a good communicative conveyancing solicitor who answers you, whether that is by phone or email.  Preferably one where you can track your case file directly online with a secure login platform, or has an efficient telephone answer help line.

Moving forward

Give the estate agent your conveyancers’ details, as the agent can send the ‘memorandum of sale’ to your solicitor directly. The agent can notify the seller’s solicitor too. The solicitor will send you a ‘starter pack’. This will contain their terms of engagement, mission statement, a formal instruction form, a verification of Identity forms and a copy of the quote (with a tariff of costs for their sundries).

Fill out the starter pack forms as soon as possible. Nothing can be done until these forms have been completed and returned. Many transactions start very slowly because a lot of buyers procrastinate. Or become distracted with normal life routine.

Once your solicitor has received your completed forms they will contact the vendor’s legal representative and request the ‘sale pack.’ This will include: Title documents, Property Information Form, Fittings & Contents From (and, if it is leasehold, that documentation as well.)

Do not be surprised if there is an exchange of on-going questions and answers from the two-party conveyances throughout the whole buying process – it’s known as ‘additional enquiries.’

Conveyancing searches

1. Next your solicitor will carry out local authority searches for any planning in the area. These also look for local infrastructure, water/utility services and environmental searches. This will ensure there are no hidden agendas that would impact on your home sale. If you do not require a mortgage you do not strictly have to have any local authority searches. But for peace of mind it is best to have them.
2. The most important search is the Land Registry. This confirms that the seller is the legal owner of the property being sold. Checks are made for any restrictions (2nd/3rd charges on the property) or covenants (that certain activities will or will not be carried out at the property).
3. Checking the ‘title register’ and ‘title plan’ at the Land Registry are legally required in order to sell – these are the legal documents proving the seller’s ownership.
4. Another search you may have to check is the local ‘Chancel’ search – this ensures that the property is not affected by an obligation to contribute to a local church for their maintenance costs.
5. Flood risk searches, these days with the ever changing climate, are now also deemed an important check too.

Conveyancing for your mortgage

Your mortgage lender will require a valuation survey (and possibly a structural report) of the property for their records. As the lender is providing collateral for the property, they will want to know its value is sufficient security to recuperate the mortgage debt owed if the house is repossessed. The lenders will have their own approved panel of surveyors they will choose from to use.

When you get your mortgage sorted you will need to ensure you have the required mortgage deposit. Your buying deposit can be used from your previous house sale. If your deposit is gifted, for example, you need to advise your solicitor and lender as soon as possible. Either way your solicitor is required by law to carry out various money laundering checks.

The mortgage lender will issue a formal mortgage offer. A copy will be sent to you and your solicitor for it to be reviewed.

Tip: do not assume your solicitor has received a copy of your offer. It is wise to call to confirm with them. Not receiving the offer causes hold ups.

The sales build up

During the next stage your solicitor will prepare a file with all of the relevant sales information, and prepare a ‘Report on Title’. This will include details from the ‘sale pack’ from the vendors solicitors of all of the information gathered to date. You will be expected to confirm that you have read and understood this report. Let your solicitor know if you have any questions or are happy to proceed.

A completion date will be finalised and agreed between the seller and buyers solicitor’s. You will need to pay an agreed deposit to the vendor’s conveyancing solicitor. This is usually around 10% of the sale price.

Buildings insurance is required before exchange of contracts happens, so ensure you have this sorted. This is a contractual requirement of the mortgage lenders T & C’s in most instances, and is the buyer’s responsibility.

With your agreement, the solicitors will ‘exchange contracts.’ After exchange you are legally committed to buying the property. If, for any reason, you do not complete – you could lose your deposit. You may also be sued for any losses incurred by the seller. The vendor is also legally bound by contract to sell the property to you; if they withdraw you would be able to sue them.

The pre-completion phase

Next your solicitor will forward you a financial statement known as a ‘completion statement.’ This will explain how much you will have to pay to complete the property purchase. It will detail all of the sale expenses. Tip: Again, always check each and every document throughout your sales journey.

The solicitor will engage to ‘drawdown’ funds from the mortgage lender to pay for your property. You will need to credit any remaining money owed towards your purchase to the solicitor’s client escrow account. These funds must have cleared the day before completion of exchange of contracts can take place.

If you are in a housing chain the other solicitors will do the same thing. They will only release it if the other people in the chain (please read our blog on property chain breaking) are all happy to go ahead. This means if one person pulls out or delays, then everyone in the chain gets held up.

Once the seller has vacated the property (‘vacant possession on completion’) you will then be able to collect the keys from the estate agent. Now is the time for you to relax and celebrate.

And finally

Many people are surprised to learn that there are various post sale actions for the conveyancer to do even after the property has completed. These include: paying any stamp tax duty, registering the new owner with ‘Land Registry’, sending the deeds to the mortgage lender, and if relevant, notifying a leaseholder of new ownership.

You will want to collect together any outstanding paperwork from the purchase of your new home, including the estate agent’s brochure, to file away and keep safe for when you move again.