Conveyancing is the legal process of transferring the ownership of real estate property from one party to another. It involves a series of steps and legal procedures to ensure that the property title is properly transferred and that all legal obligations are fulfilled. Here's an overview of the conveyancing process:
- Instruction: The conveyancing process begins when a buyer instructs a solicitor or licensed conveyancer to handle the legal aspects of purchasing a property. The seller may also instruct their own legal representative.
- Pre-Contract Stage:
- Property Searches: The buyer's solicitor conducts various searches to gather information about the property, such as local authority searches, environmental searches, and drainage and water searches.
- Review of Legal Documents: The solicitor reviews the legal documents related to the property, including the title deeds, property information forms, and fixtures and fittings list.
- Drafting Contracts:
- Sale Contract: The seller's solicitor drafts a contract of sale, which includes details such as the sale price, property boundaries, fixtures and fittings included, and any conditions of sale.
- Enquiries and Replies: The buyer's solicitor submits enquiries to the seller's solicitor to clarify any issues or concerns about the property. The seller's solicitor provides replies to these enquiries.
- Exchange of Contracts:
- Once both parties are satisfied with the terms of the contract and all legal requirements have been met, the buyer and seller exchange signed copies of the contract. At this point, the transaction becomes legally binding, and a deposit (usually around 10% of the purchase price) is paid by the buyer.
- Post-Contract Stage:
- Pre-Completion Searches: The buyer's solicitor conducts final searches to ensure that there have been no changes to the property or its surroundings since the initial searches were conducted.
- Preparation for Completion: The buyer's solicitor prepares for completion by arranging for the transfer of funds from the buyer's mortgage lender and ensuring that all necessary paperwork is in order.
- Completion:
- On the agreed completion date, the balance of the purchase price is paid by the buyer's solicitor to the seller's solicitor. Once the payment is received, the seller's solicitor confirms receipt and authorizes the release of keys to the buyer.
- The property transfer documents are then registered with the relevant government authority (e.g., Land Registry in the UK), officially transferring ownership of the property to the buyer.
- Post-Completion Stage:
- The buyer's solicitor ensures that the property title has been successfully registered in the buyer's name and provides the buyer with a copy of the registered title.
- Any outstanding fees, taxes, or other payments are settled, and the buyer takes possession of the property.
Throughout the conveyancing process, the solicitors or conveyancers work to protect their clients' interests, ensure that all legal requirements are met, and facilitate a smooth and legally compliant property transaction.