We have often been asked at the outset of a transaction for details on
what is involved with the conveyancing process to give an idea of how
long the transaction will take. Whilst we cannot be specific of
time-scales the average conveyancing transaction takes about 4 - 6
weeks. The following guide will hopefully give you an idea of the stages
which are involved:
Instructing Solicitors
Both the buyer and seller will instruct a lawyer and notify the estate
agent of who they are using. The estate agent will contact the lawyers
and pass on the details of the transaction. The buyer’s lawyer will
then contact the seller’s lawyer to request the draft contract papers.
During this time the seller will be asked by their lawyer to complete a
Property Information Form, Fittings and Contents Form and if the
property is leasehold, a Leasehold Information Form. The buyer will be
asked to provide their lawyer with funds on account of the local
searches.
Approving The Contract
The seller’s lawyer will prepare a pack which will include the draft
contract, the seller’s completed forms (see above) and a copy of the
title of the property. This will then be forwarded to the buyer’s
lawyer. If the property is leasehold the seller’s lawyer should contact
the management company/freeholder and request a leasehold information
pack.
Enquiries And Local Searches
The buyer’s lawyer will read through the draft contract papers and make a
list of any enquiries which they wish to raise. This will then be sent
to the seller’s lawyer with any comments they have regarding the
contract. It will also be at this stage that the buyer’s lawyer will
apply for the local searches.
Replies To Enquiries And Mortgage Offer
The seller’s lawyer will deal with the enquiries which have been raised
by the buyer’s lawyer. It is most likely that further information will
be needed from the seller to deal with these enquiries. If the buyer is
getting a mortgage, by this stage (if not before) the buyer’s lawyer
should have received a copy of the mortgage offer.
Reporting Stage
The buyer’s lawyer will send a report to the client on the results of
the searches, replies to enquiries and on the mortgage offer. Some
lawyers will only report once all of these items have been received but
our approach is to report as we go along as it may be that some of the
documents we receive early on in the transaction may influence your
decision to proceed. The buyer will at this stage be asked to sign the
contract, mortgage deed and send the deposit to their lawyer.
The seller’s lawyer will arrange for the seller to sign the contract.
Exchange
Providing the rest of the chain is ready and the buyer and seller’s
lawyers are holding signed contracts then exchange can take place.
Exchange of contracts is the point where a legally binding contract will
be created between the buyer and seller and it is very difficult and
costly to pull out after this stage. It is at this point that the
completion date will be set and so the buyer and seller will need to
agree on a date. There will usually need to be at least a week between
exchange and completion as if any parties are getting a mortgage the
lender will need at least one week’s notice to release the funds.
On exchange the buyer and seller’s lawyers each send the other their
client’s signed contract. The buyer’s lawyer will also transfer the
buyer’s deposit to the seller’s lawyer who will hold the deposit in
their account until completion.
Once exchange has taken place the buyer’s lawyer will send a transfer to
the seller’s lawyer. The transfer must be signed by the seller and
held by their lawyer on or before the completion date.
Completion
The completion date is the date on which the property will be sold and
is also usually the moving date. On completion the buyer’s lawyer will
send the purchase monies to the seller’s lawyer. Once the seller’s
lawyer has received the purchase monies they will contact the estate
agent and instruct them to release the keys. If the seller has a
mortgage on the property then the seller’s lawyer will repay the
mortgage from the purchase monies. The seller’s lawyer will also
forward to the buyer’s lawyer any title deeds for the property and the
signed transfer. The buyer’s lawyer will then deal with registering the
property in the new owners’ names.
The above is intended as a guideline and does not cover everything which
will need to be done by the lawyers but hopefully it gives a general
idea of the conveyancing process. Throughout the transaction your
lawyer should keep you posted and update you on how the matter is
progressing.
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