Moving home? Buying or selling an investment property? We know there’s a lot of financial aspects to consider. The questions we’re asked most weeks are ‘what is conveyancing?’ and ‘why do I need it?’
Conveyancing is the legal process of transferring a property or piece of land from the seller to the buyer.
Louise Palmer, head of the conveyancing department, explains the key stages of how the process works, whether you’re buying or selling.
At ORJ, we have the largest and most experienced team of legal specialists in Staffordshire.
BUYING A PROPERTY
Contract Papers and Order Searches:
When the Contract Papers arrive, the necessary searches are carried out (i.e. Local Search, Environmental Search and Water Drainage Search).
Investigating the Title:
Once searches have been ordered, the Title is investigated alongside other documentation within the Contract Pack. At this point, the title deeds are checked to see if the property benefits from necessary rights to access the property and whether there are any restrictions against the property.
Raise enquiries and prepare Contract Report:
Once the Title has been investigated, enquiries in relation to the property are raised with the seller’s solicitors. During this stage, the Contract Report is prepared to provide information about the property and sent with the contract to the buyer to sign. The signed contract is kept on file in readiness for exchange of contracts.
Review searches and deal with finances:
Once the searches have arrived, they are reviewed and enquiries raised. A Search Report, detailing the searches, will also be sent out. If the purchase is aided with a mortgage, once the offer is received from the lender, the Mortgage Deed can then be signed.
Requesting mortgage monies and monies due:
When the replies to enquiries are satisfactory, the transaction progresses. A report is sent on the enquiries and replies received. Once a completion date has been agreed, funds are requested from the buyer and the mortgage lender.
When the completion date has been agreed, contracts can then be exchanged. Once exchange of contracts has taken place, completion is then legally binding and if either side does pull out there are major penalties payable under the Contract.
The monies are sent to the seller’s solicitor on the day of completion. Once they have received the monies, completion has taken place and the keys can be collected from the estate agents. Generally, completion takes place by 2pm. Following completion, an application is sent to the Land Registry to register the property into the buyers name.
For more in depth details, visit our Buying a Property page
SELLING A PROPERTY
Prepare and Issue Contract Papers:
The Contract Papers are prepared and issued to the buyer’s solicitor. At this stage, the contract will be prepared for the seller to sign and kept on file in readiness for exchange of contracts.
Deal with enquiries:
Once in receipt of the enquiries from the buyer’s solicitor, these are dealt with and replies sent to the buyer’s solicitor, with a request for Transfer Deed.
Arrange for the Transfer Deed to be signed:
At this stage, the Transfer Deed is posted out to be signed.
A completion date is agreed with the buyers and contracts are exchanged between the two solicitors.
As soon as the sale monies arrive, the keys are released to the buyer. Generally, completion takes place by 2pm. If there is a mortgage, this will be paid off and discharged. The estate agents are sent their fees, which are deducted from the sale proceeds.
For more in depth details, visit our Selling a Property page.
If you are thinking about selling your property, or you’re in the process or purchasing a new home, contact Louise.Palmer@orj.co.uk or call 01785 223440 for a conveyancing quote.