Your step-by-step guide to the conveyancing process
Once a sale has been agreed and is in the hands of your solicitor, it will go through the following stages. Sometimes additional work will be needed – for example, if the property is leasehold or is yet to be registered with the Land Registry.
It is also important for buyers to discuss the availability of their deposit with their solicitor early in the transaction, and we strongly recommend that you contact your solicitor regularly so that they can keep you fully up to date with the progress and the latest timescales.
Seller’s solicitor’s steps
• Obtain a copy of the Title Deeds (or office copies if the title is registered)
• Obtain a copy of the Energy Performance Certificate (EPC) (if applicable)
• The seller(s) will return a completed Property Information Form and a Fixtures, Fittings and Contents Form to the solicitors
• Copies of the above documents, plus a draft contract – this is known as an ‘Information Pack’ – will be sent to the buyer’s solicitor
• Answer the buyer’s solicitor’s additional enquiries (for example, specific questions about fixtures and fittings) and obtain copies of any planning consent documents
• Agree the contract and arrange for the sellers to sign it in readiness of the exchange (below)
• All parties agree completion dates and the contracts are exchanged
Between exchange and completion
• Obtain redemption figures from the mortgage lender and reply to requisitions on title
• Approve the transfer and arrange for the seller(s) and buyer(s) to sign
• Receive the agent’s fee account and seek the seller’s consent to settle this out of completion funds
• Completion date - this is the date the ownership of the property passes from the seller to the buyer, following the successful transfer of funds. It’s the date that the whole process works towards.
Upon completion
• Receive completion funds and (only when this has been completed) instruct your estate agent to release the keys to buyers. Redeem mortgage and forward the financial statement. • Forward any surplus funds (unless these are being used to fund an onward purchase). Ensure all outstanding bills are paid.
• Forward transfer documents and deeds to the buyer’s solicitors
• Forward evidence of ‘discharge of mortgage’ to the buyer’s solicitors
Buyer’s solicitor’s steps
• Obtain the Information Pack, including a copy of the EPC (if applicable) from the sellers’ solicitor and raise any additional queries
• Initiate any specialist searches (for example: a coal search). Submit local, environmental and water searches and a chancel check. This takes on average 2 – 4 weeks, and enquiries are then usually raised from the results
• Approve the contract when all enquiries are satisfactory and complete. (At this stage, a mortgage transfer deed will need to be signed and witnessed)
• Receive a mortgage offer and instructions from the lender and deal with any conditions set out
by them. Make sure that life cover and buildings insurance is being arranged
• Request the deposit, report back to the buyer, and arrange for the contract to be signed. Place buildings insurance and life cover in force
• All parties agree completion dates and the contracts are exchanged
Between exchange and completion
• Raise ‘requisitions on title’ and prepare the draft transfer deed
• Report on title to mortgage lender and obtain funds for completion, including Stamp Duty (if
appropriate)
• Prepare accounts, obtain signature to mortgage deed and undertake final Land Registry and Land Charges searches
Completion date
This is the date the ownership of the property passes from the seller to the buyer, and it follows
the successful transfer of funds. It’s the date that the whole process works towards. Upon completion:
• Forward to the seller’s solicitors the balance of funds − it is only then that they can authorise the release of the keys.
• Receive from the seller’s solicitors, the transfer document deeds.
• Stamp the Transfer Deed, register the buyer’s ownership with the Land Registry and forward the deeds to the lender or client (where appropriate).
Terminology
Contract - The agreement that sets out the main terms that have been agreed − for example: price, address, names, etc. Two copies are drawn up, and each party signs one in readiness for the exchange of contracts.
Deposit - The part of the purchase price (usually 10%) which the buyer pays on exchange of contracts.
Exchange of contracts - The swapping of signed contracts by the solicitors (together with the buyer’s deposit). After this, the contract is binding.
Energy Performance Certificate - This contains information on energy use, energy performance, carbon dioxide emissions, and fuel bills.
Land Registry - The Government department that records who owns what land, and under what conditions.
Local Authority Search - A list of questions that are specific to the property and intended, for example, to discover if there have been any planning applications on the property, if the road to the house is maintained by the council, etc.
Mortgage Redemption Figure - The amount required to repay the outstanding capital/ interest of a mortgage.
Property information form/fixtures, fittings and contents form - Standard forms about the property that the seller answers for their solicitor (for example: what will be left behind, details of guarantees, etc.)
Title Deeds - Legal documents that prove ownership of land/buildings, and the terms on which they are owned.
Transfer of Title - The document that passes the ownership from the seller to the buyer.
Stamp Duty for buy to let investors and second homeowners - An additional tax, paid by the buyer purchasing an additional property that is not their main residence. It includes buy to let landlords and those buying second homes and holiday homes. The higher rates will be a % above the current rates of duty.
Requisition on title - An enquiry relating to the completion arrangements.
Seller’s Pack - This comprises a Property Information Form, a Fixtures, Fittings and Contents Form, a copy of the title deeds and the draft contract.
Stamp Duty – For the current rate of stamp duty applicable to your purchase we recommend that you look at the governments stamp duty calculator https://www.gov.uk/stamp-duty-land-tax/residential-property-rates
However, how much you pay is also dependent on whether you already own another property or if you’re a non-UK resident.
