The Complete Guide to Conveyancing
Buying or selling a property is rarely a quick process – and that’s because certain steps must be taken along the way. One such step is conveyancing. It’s a vital link in the chain and necessary to complete the transaction between buyer and seller.
What is conveyancing?
Conveyancing is the legal process of transferring property ownership from one party (the seller) to another (the buyer).
Any transfer of property begins with a negotiation of terms between the buyer and seller, including the purchase price and any conditions of the sale. Once an agreement is reached, the conveyancing process can formally begin.
One of the primary tasks in conveyancing is conducting searches and investigations to uncover any issues that may affect the property's title or use. These searches can include checking for outstanding liens, easements, planning restrictions, or other legal encumbrances that could impact the property's value or how it is used.
As a real-world example of what these investigations may uncover, let’s consider the issue of cladding in high rise buildings. For those considering buying a flat in a multi-occupancy building, the question of cladding is especially important following the tragic fire at Grenfell Tower in June 2017. A fire which started on the fourth floor due to an electrical fault in a refrigerator subsequently enveloped the entire tower. The fire was able to spread so quickly because combustible aluminium composite cladding and external insulation on the outside of the building fed the flames, leading to substantial loss of life.
Ever since, many owners of flats in buildings with a similar cladding applied have seen the value of their homes nosedive. Conveyancers can help advise prospective buyers on the need for surveys and whether the cladding on the property they wish to purchase has the correct certificates of safety to confirm that it meets current regulations
Importantly and at the core of what conveyancers do is to , prepare and review and advise on legal documents such as contracts of sale, transfer deeds, and mortgage documents. These documents outline the terms of the transaction and ensure that both parties understand their rights and obligations and what they are buying and selling.
Who needs to do my conveyancing?
In the UK, conveyancing can be carried out by firms that are regulated as solicitors, legal executives or licensed conveyancers. All are professional and are qualified and regulated to handle property transactions, but there are some differences between them.
Solicitors and Legal Executives are qualified lawyers who can practise in various areas of law, including conveyancing. They can have a broader legal knowledge base and can with their colleagues, often assist with complex legal issues that may arise during the conveyancing process not least because Solicitors firms can also provide additional legal services beyond conveyancing if needed.
Licensed conveyancers specialise in property law and conveyancing. They undergo specialised training in property law and conveyancing procedures, making them highly knowledgeable and experienced in the field of property transactions. They cannot generally however advise outside of that limited area should it be needed.
What will a conveyancer do?
As we have touched on, a conveyancer plays a vital role in ensuring that property transactions proceed smoothly, legally, and in the best interests of their clients. But what does it mean in practical terms? What do they do, exactly? Here are the primary responsibilities of a conveyancer.
● Legal Advice: A conveyancer provides legal advice and guidance throughout the property transaction process. They ensure that their clients understand their rights liabilities and obligations, as well as any legal implications associated with the transaction. Which is to say, don’t hold back if you have questions!
● Conducting Searches: One of the key tasks of a conveyancer on a purchase is to conduct various searches and investigations on the property being bought or sold. These searches aim to uncover any issues that may affect the property's value or use. This may include outstanding liens, easements, planning restrictions, or other legal encumbrances.
● Preparing and Reviewing Documents: A conveyancer will also be responsible for preparing and reviewing legal documents related to the property transaction. Those documents include contracts of sale, transfer deeds, and mortgage documents. The conveyancer will verify that the document contents accurately reflect the terms of the transaction and protect their client's interests. In short, they go through all the small print.
● Facilitating Communication: A conveyancer acts as a mediator between the buyer and seller, as well as other parties involved in the transaction, such as estate agents, mortgage lenders, and government authorities. They facilitate communication and ensure that all parties are informed of the progress and any relevant developments as they happen.
● Managing Finances: A conveyancer manages the financial money movements of the property transaction, including the transfer of funds between the buyer’s conveyancer and sellers’, payment of estate agents fees and taxes, and settlement of any outstanding mortgages or obligations relating to the property.
● Registering the Transfer: After the completion of a purchase transaction, the conveyancer is responsible for registering the transfer of ownership from the seller to the buyer with the the Land Registry in the UK. This officially records the change of ownership and ensures that the new owner's ownership rights are legally protected
How much will it cost?
The cost of conveyancing can vary depending on several factors, including the complexity of the transaction, the value of the property, the location of the property and the clients personal situation and circumstances. . All regulated conveyancers are required to provide details of their charging structure but they can vary – with some firms offering a more expensive bespoke service and others offering a more online service that allows cheaper fees but less personal contact
Additionally, some conveyancers offer fixed-fee packages or no-completion, no-fee arrangements,. While conveyancing costs can add up, investing in a reputable conveyancer will provide peace of mind and ensure that the property transaction proceeds smoothly and legally.
Here are some common expenses associated with conveyancing:
● Conveyancer's Fees: This is the cost of conveyancing work itself and typically varies based on the conveyancer's experience, location, and the services included. Conveyancer fees may be fixed or based on a percentage of the property's value or (rarely) on a time spent basis .
● Search Fees (Purchase only): Conveyancers need to conduct various searches on the property. These include conducting local authority searches, environmental searches, and water and drainage searches. These searches incur fees, which can vary depending on the location and the types of searches required. Some properties may also need mining searches and some clients may want more detailed searches about what may be happening in the local area etc.
● Land Registry Fees (Purchase only): There are fees associated with registering the change of ownership with the Land Registry. The cost depends on the value of the property and whether it's being registered for the first time or has already been registered and is being updated.
● Stamp Duty Land Tax (SDLT) (Purchase only): SDLT is a tax imposed by the government on property transactions above a certain threshold. The amount of SDLT payable depends primarily on the purchase price of the property but other factors, such as whether it's a second home, of the buyer has loved abroad, can play a significant role in how much tax is payable. This is a very complex area and specialist advice may be needed
● Additional Costs: There may be additional costs involved, such as bank transfer fees, mortgage lender fees, or indemnity insurance premiums to cover any potential issues uncovered during the conveyancing process.
How long does the process take?
The duration of the conveyancing process can vary depending on many factors, including the requirements of the parties, the complexity of the transaction, the efficiency of the other conveyancer, mortgage offers, surveys and any unforeseen problems that may arise. However, on average, the conveyancing process in the UK typically takes between 12 to 16 weeks to complete, according to the HomeOwners Alliance whilst leasehold transactions can take considerably longer) .
In this time frame, the conveyancer will conduct the various searches and enquiries, review legal documents, and conduct any necessary investigations should further information be needed. Once all of this complete, and both parties are satisfied with the terms of the transaction, contracts are exchanged and both parties are committed contractually.
At this point, a completion date is agreed upon for you to move house. Following completion, the conveyancer ensures that the change of ownership is registered with the Land Registry and handles any remaining administrative tasks.
Do I need conveyancer for remortgaging?
Eagle-eyed readers will have caught the reference to mortgage documents in the first section of this guide, and they won’t be surprised to know that the answer is yes - in some cases.
Whether or not you’ll need to involve a conveyancer in your remortgaging process often depends on whether you’re remortgaging with your current lender or looking to move to a new mortgage deal with a new lender. If you’re sticking with your current mortgage provider, you may not be required to use a conveyancer. If you’re hoping to move to a new lender, you will need the services of a conveyancer.
Remortgaging, though less complex than the initial property purchase, still involves several legal steps. Your identification will need to be verified for example and details of your current mortgage will need to be requested from your lender.
After your new lender evaluates the property and issues a mortgage offer, it will need to be reviewed and then signed.
On completion day, your legal representative receives the mortgage funds, settles your old mortgage, and disburses any remaining funds. Finally, they will update the Land Registry to reflect the changes in your property's legal title.
If you’re looking for exceptional, expert assistance with your residential property matter contact the team today at conveyancing@kiteleys.co.uk or call us on 01202 849242.