Many people assume that buying properties is quite straightforward, where it only takes two people to agree on something and for the money to be transferred. However, it really is a little more complicated than that. While the exchange of money is the basis of the transaction, there are many other things that need to be done, such as inspections, to ensure the buyer and seller makes the right decision.
That being said, in your efforts to buy a home, you may have heard of the term conveyancing. What is it? How does it work? Do I need it? If you have these questions and more about conveyancing, you're in the right place!
Let's talk about the conveyancing process and how it ties to your home-buying efforts in the UK:
What Is Conveyancing?
Conveyancing is the legal work done to transfer the title of property from one person to another. It is a fairly lengthy process but is essential for both buyers and sellers.
It must be done by a conveyancer, a licensed advisor in your state or country. The buyer usually pays the cost of this process, though you should ask your solicitor whether this is the case in your case.
Generally, conveyancing takes a few weeks to complete and is completed before the property is transferred. Also, it is generally carried out by a conveyancer, as they are experts with handling land registry along with many other legal processes to make your life easier.
What Is The Process Of Conveyancing When Buying A Home?
As mentioned, conveyancing is the legal work of transferring property ownership from the seller to the buyer.
It starts when the buyer sends the solicitor (conveyancer) a request to purchase the property. It can be done verbally, in person or via writing. After that, the conveyancer will obtain the following:
Information on the seller
Information on the property
Letters of intent to purchase
Once the conveyancer has all of the information, they will draft an offer to purchase and send it back to the buyer. The buyer will need to agree to the offer and have it signed by the seller. That offer then becomes a legally binding contract.
Next, the conveyancer will ask for a deposit from the buyer and seller. This deposit is typically one per cent of the agreed purchase price, though it can be more or less.
Once the deposit is paid, the conveyancer will send a copy of the contract to the seller and buyer, along with a request for the seller to provide more information. This can include:
Details of any improvements that the seller made
Information on who made the improvements
Information on any leases that exist
Names and addresses of any tenants and tenants' agreements
If the seller refuses to give information on the tenants, the conveyancer will not proceed with the sale. The conveyancer will also request information on the condition of the house. They will ask the seller and/or the buyer to get a survey done to ensure that the property is not in bad condition (for example, if the property has major foundation damage, it may not be able to be sold).
The buyer will also have to obtain a survey, though. If the surveyor finds out that the property is in bad condition, the buyer might proceed with the purchase but negotiate a lower purchase price.
After the buyer has paid the deposit and the seller has paid the conveyancer to do the work, the conveyancer will then send a copy of the contract to the official land registry office to secure the details of the property. After that, the conveyancer will get the buyer to pay for the buyer's survey. It is the buyer's responsibility to make sure that the property is in good condition.
Once the buyer's survey is done, the buyer can then exchange contracts. This is when the buyer and seller send their contracts to each other. Once sent, the exchange of contracts is a legally binding contract on both sides.
After the exchange of contracts, the buyer and seller must do a final exchange of payment. The buyer will then make the final payment, which will be used to pay the conveyancer to complete the transaction. The conveyancer will then arrange for the land registry office to change the details of the property transfer.
Then, after a period of time, the property ownership will be transferred to the new owner.
Keep in mind that the above steps may not exactly apply to you, as each transaction can be different. However, hopefully, it has given you a general idea of what to expect when buying a home.
How Do I Speed Up The Process Of Conveyancing?
Conveyancing can be a long process and can sometimes even take up to a year. There are a few things that you can do to help the process along:
Be sure to ask the seller's solicitor (conveyancer) to do the conveyancing process as soon as possible and to provide you with a timetable and checklist of all of the steps in the process.
Talk to the seller's solicitor if you are going to make any home improvements before the property is transferred. Your solicitor may ask you to get a certificate from the local building authority that the work has been done to code.
Have all of your paperwork ready before you go to have your property survey done. This will save you time since you will not have to wait for anyone to get paperwork and such.
Have your money ready to pay your solicitor, and it will go faster. The payment will be made to your conveyancer after the exchange of contracts.
Should I Do My Own Conveyancing Or Hire A Professional?
In the UK, it is common to hire a conveyancer, as they handle all of the legal requirements while you concentrate on buying the property. However, as you will have to pay your solicitor, you may be wondering if it is possible to do your own conveyancing.
Hiring a conveyancer is much easier than doing it on your own. They will ensure that the paperwork is done correctly and that everything is in order.
On the other hand, they will also charge you a fee which can be quite expensive. However, you can use the conveyancing calculator to find out a more accurate estimate of how much you will pay for the conveyancing process. That way, you can enjoy maximum savings while ensuring all your conveyancing needs are met!
Conveyancing is an important step in buying a home. It is the process of transferring the title of property from one person to the other, helping to ensure that your home is legal and that there are no issues with the property. However, this process can be long and complex. You should do your research or hire a professional, such as the conveyancing experts here at Veye, to help you through this process. You will be required to pay a fee for this service, but it is well worth it.
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