Conveyancing is the legal transfer process of property from one party to another. The key stages are the exchange of contracts and sale completion, between which there is much legal and administrative work to do before both parties can exchange contracts.
While the conveyancing process is similar for each buying/selling transaction, each transaction will be different, so while the conveyancing solicitors in the property buying/selling chain carry out similar legal and administrative tasks, it can be stressful due to time and money pressures.
When obtaining a mortgage, a Conveyancer acts on behalf of the buyer and the lender. All the lender’s conditions in the mortgage offer must be dealt with before they can request funds. Therefore, buyers must check their mortgage offer and ensure that all mortgage conditions are dealt with before completing the property transaction.
A conveyancing solicitor is fully trained in legal services but specialises in conveyancing. In contrast, a licensed conveyancer is trained in conveyancing only, and solicitors and conveyancers are subject to different governing bodies:
- Solicitors in the UK are regulated by the Solicitors Regulation Authority (SRA). They are required to be members of the Law Society.
- Conveyancers are registered with and regulated by the Council for Licensed Conveyancers (CLC). Licensed conveyancers can also work for a solicitors’ organisation but would be regulated by the SRA.
Stage 1 - Instruction: Once the parties have informed their Conveyancer of the transaction details, the Conveyancer will confirm the instructions in a letter and provide an estimate of costs. The person instructing the Conveyancer will need to:
- Sign the initial letter of instruction
- Provide proof of identification
- Show evidence of where the funds to purchase
are coming from
- Deposit money on account to cover the cost of
any third-party disbursements.
Stage 2 - Production of Contract: The party selling the property will be asked to complete the following:
- A property information form
- Fittings and contents form
- If the property is leasehold, a leasehold
information and property management form
The above documents form part of the ‘contract papers’ and provide vital information directly from the party selling the property about the property to be sold. The documents will contain evidence from the Land Registry that the party selling the property is the legal owner and has the right to sell it.
A draft property sales contract will be drawn detailing the terms and conditions of the sale from the forms and information that have been compiled.
Stage 3 - Local Searches and Funds: Following receipt of the contract papers from Stage 2, the Conveyancer will examine the information supplied and raise any pre-contract enquiries that need to be raised from the party selling the property, which may include searches on the contract, title, and the property itself.
The party selling the property will have to provide adequate replies to these enquiries before the sale of the property can proceed. Acting on behalf of the buyer, the Conveyancer will request property searches from the following:
- Local Authority
- Water Company
- Environmental Agency
- Any other relevant local authorities
Further enquiries may then have to be raised following receipt of the search results, and the buyer will arrange for a survey covering the property to be carried out by a qualified surveyor. Further questions may be raised for any issues that arise from the report, which may be sent to the party selling the property.
If applicable, the property buyer will make any final arrangements for a mortgage and inform their Conveyancer of the mortgage details.
Stage 4 - Reporting and Contract Signing: Once the buyer's Conveyancer is satisfied that Stage 3 is complete, the Conveyancer can advise the buyer, using their conveyancing skills, knowledge and experience concerning the property and its title being offered and the transaction.
If the property is leasehold, the reporting stage may take longer because the lease terms must be reported and can be complex. The buyer will need to ensure that they are happy with the report and raise any further enquiries that they may have following their review of the lease.
The buyers and the selling parties’ Conveyancers will arrange for the buying and selling parties to sign the Property Transaction Contract and agree on a property transaction completion date.
Stage 5 - Exchange of Contracts: Upon receipt of each other’s signed contracts and the buyer supplying their deposit, the contracts will be formally exchanged to complete on the agreed date.
Stage 6 - Completion (time agreed by parties): At a time agreed by both the buying and selling parties, monies will be transferred from the buyer to the seller's Conveyancer, signalling the end of the transaction and the release of the property’s keys to the buyer, this is usually within two weeks following the exchange of contracts to allow for funds to be provided and mortgage advances to be obtained.
The differences between the Solicitors Regulation Authority and the Council for Licensed Conveyancers are likely to have little impact on the buyer or seller of a property as both regulators exist to ensure high standards and act to protect the public. However, solicitors are forbidden from acting for both sides of any property transaction for any legal issue(s) without informing the buyer and seller, which is known as a conflict of interest when it occurs.
Conveyancers, however, are technically allowed to act for both the buyer and the seller in a transaction, which may not be ideal as using a separate Conveyancer for the other party in a property transaction ensures that whoever is dealing with the buying or selling parties case is doing so with their best interests at the forefront of their priority.
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