Stages of conveyancing for buyers.

1. Pre-contractual stage

Once you’ve made an offer, legal documents are prepared to transfer ownership from the seller to you.

The seller draws up a contract – you can negotiate its terms if necessary. If you’ve instructed a solicitor or licensed conveyancer, they will carry out this work and advise you on the contract.

The contract details include:

• the selling price
• the property’s boundaries 
• what fixtures and fittings, like carpets, are included 
• legal restrictions or rights on the property 
• planning restrictions
• a description of the services to the property, for example drainage and gas
• the date for completing the purchase (called ‘completion’)

Researching the property

Before you sign and exchange the contract, you and your solicitor or conveyancer should find out as much as possible about the property.

The seller doesn’t have to voluntarily tell you about problems with the property or neighbourhood. The seller should, however, reply truthfully to enquiries. Your solicitor or licensed conveyancer will do a number of searches and checks including:

• checking the ‘title’ – the legal document that proves the seller’s ownership 
• asking the local authority about planned works, like roadworks or new developments, that might affect the property
• enquiries to the seller’s solicitor or licensed conveyancer about the contract details

There may be other searches depending on the type of property. For example, if your property is in an area where there have been mines, your solicitor or licensed conveyancer will need to do a mining check.

2. Exchange of contracts

When the buyer and seller are happy with the contract, they sign final copies and send them to each other. This is called the exchange of contracts.

Once contracts are exchanged, the agreement to sell and buy is legally binding and usually neither party can pull out without paying compensation.

Buyers usually pay the seller a deposit (normally ten per cent of the purchase price) at the exchange of contracts stage.

3. Between exchange and completion

There are often a few further checks to be done at this stage. If not dealt with already, your solicitor or conveyancer will:

• prepare the legal documents to transfer ownership 
• check mortgage documents 
• make sure they have all the necessary funds, including their own fees
• arrange for the transfer of funds to the seller
• do final Land Registry checks
• check all agreed tasks set out in the contract have been done 
• check that fixtures and fittings have been left as agreed

4. Completion

Once all matters between exchange and completion are dealt with, the money for the property is transferred from buyer to seller. The sale is now completed and the keys are handed over. The property now belongs to the buyer.

At this stage, you will:

• receive the keys on the agreed date 
• pay the seller the remainder of the property cost through your solicitor or licensed conveyancer 
• receive the legal documents that prove ownership 
• pay your solicitor’s or licensed conveyancer’s fees, if not already done

5. After completion

At this stage, you (or more usually your solicitor or licensed conveyancer) will need to:

• register the change of ownership with Land Registry
• pay Stamp Duty Land Tax (Stamp Duty)

You’ll also need to tell your insurers that completion has taken place.

For more about Stamp Duty see ‘Tax on buying property’.

 SOURCE: http://www.direct.gov.uk/en/HomeAndCommunity/BuyingAndSellingYourHome/BuyingYourHome/DG_4001326

 

 Do you want a cheap conveyancing solicitor? http://amberglobelegal.com/