Residential Conveyancing

Conveyancing is the term lawyers use to describe the legal process of transferring ownership of land and any buildings built on it.

This actually means much less than it used to. The legal effect of “subject to contract” on an estate agent’s notice board is very little.

Before 1989 the phrase was used to prevent a binding contract being formed between the seller and buyer by accident. In 1989 Parliament passed legislation to prevent that from happening so the wording is in reality redundant. However, many estate agents and lawyers still use “subject to contract” to make sure that everyone is aware that whilst an offer has been made on the property and the legal process is being dealt with, there is actually no binding contract in force.

Title Deeds are the documents which prove you own the property you say you own. Since it has become compulsory to register property at the Land Registry the days of having bundles of title deeds have become a thing of the past – usually now the title deeds consist of a copy of the electronic registers held at the Land Registry.

This used to be called “Stamp Duty” and is also now referred to as SDLT. It is the tax that the Government levies on the purchase of land – including houses and flats. If the purchase price is in excess of £125,000.00 then SDLT becomes payable at 1% of the total purchase price. If the price exceeds £250,000.00 then the rate increases to 3%. At £500,000.00 the rate increases to 4% and for properties with a price of over £1m the rate is 5%.

There are some exemptions for first time buyers and for properties in depressed housing areas – we can advise if you qualify for any of the exemptions or reliefs available.

This is the date on which you entitled to move into the property. It doesn’t matter whether you actually move in on that day, but it’s the day on which your ownership of the property starts.

This can depend on a number of factors though the average process takes between 8 and 10 weeks.

It can be quicker or slower depending on the parties in the chain. For example, if the chain involves a first time buyer purchasing a new build property with a mortgage in principle, it could take twelve weeks if, of course, the property is built. If the chain involves a leasehold property that requires an extension of the lease, this can take significantly longer, sometimes between three and six months. In such a situation, additional charges would apply. These timescales are only estimates and each transaction must be considered on its own facts.

Stages of the Process

The stages involved in the sale of a property vary according to the circumstances of each case. However, the key stages would be as follows:-

• Taking your initial instructions;
• Arranging for you to complete the required protocol forms;
• Considering the title documents and drafting the contract;
• Sending the draft contract pack to the buyer’s solicitors;
• Obtaining a redemption figure from your lender (if applicable);
• Taking your instructions regarding enquiries raised by the buyer’s solicitors;
• Considering and approving the transfer deed;
• Meeting with you to sign (or sending out to you in the post if necessary) the contract and transfer deed;
• Agreeing a completion date (the date you will have sold the property);
• Exchanging contracts;
• Obtaining a final redemption figure (again, if applicable);
• Completing the transaction, redeeming any charge and accounting to you with the balance of funds.

This will depend on a number of factors though the average process takes between 10 to 12 weeks.

It can be quicker or slower depending on the parties in the chain. For example, if you are a first time buyer purchasing a new build property with a mortgage in principle, it could take twelve weeks if, of course, the property is build. However, if you are buying a leasehold property that requires an extension of the lease, this can take significantly longer, between three and six months. In such a situation additional charges would apply, and these timescales are only estimates and each transaction must be considered on its own facts.

Stages of the Process

The stages involved in the sale of a property vary according to the circumstances of each case. However, the key stages would be as follows:-

• Taking your initial instructions;
• Checking finances are in place to fund the purchase;
• Receive and advise on draft contract documentation;
• Carry out searches;
• Raise any necessary enquiries with the seller’s solicitors;
• Advise you on all documentation and information received;
• Meet with you to go through documentation and sign the contract, transfer deed and mortgage deed (if applicable);
• Agree a completion date (the date from which you will own the property);
• Exchange contracts;
• Arrange for all monies to be received from you and the lender (if purchasing with the aid of a mortgage);
• Complete purchase;
• Deal with the payment of any Stamp Duty Land Tax/Land Transaction Tax;
• Deal with the registration of the transaction at HM Land Registry.