Guide to conveyancing
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1 Guide to conveyancing
2 More than a million residential property transactions take place in the UK every single year. In recent years the number of deals has been bolstered by the improvement in the economy, following on from the financial crash and government initiatives such as the Help to Buy schemes. At Reynolds Parry Jones LLP, we understand that there is a lot of information to process when you are buying or selling a home. The legal requirements can seem overwhelming at first and many people appreciate additional information about what lies in store. With this in mind, our property team have produced this guide to the conveyancing process, offering an insight into the main steps involved and some basic principles you need to take into consideration. It is important to note that this should be considered only as a general summary, and you should always seek expert legal advice about how the rules relate to your own individual case. If you have any questions or would like clarification about any of the issues raised in this guide, please do not hesitate to contact our experienced property team. The four steps A residential property transaction comprises of four stages: 1. The period prior to parties exchanging contracts 2. The actual exchange of the contracts 3. Completion 4. Post completion formalities The sections below will examine each of these steps in further detail. Guide to conveyancing 1
3 1 Before contracts are exchanged The seller s solicitor will draft a contract to transfer ownership of the property. This will then be sent on to the buyer s solicitor to read, and negotiations will begin. Information included in the contract will vary depending on the nature of the transaction, but typically details will include: The names and details of the parties concerned The property s sale price Details about any fixtures and fittings included in the sale The date of completion Guide to conveyancing 2
4 Many solicitors will carry out this process utilising the National Protocol. This is a system run by the Law Society and popular with many of the UK law firms which offer conveyancing services. Within the Protocol, the draft of the contract will be sent to the buyer as part of a larger property information pack. This will also include documents including a property information form, a copy of the previous title deeds and a fixtures, fittings and contents form. The buyer s solicitor will need to carry out a series of checks. This helps ensure that there are not any details that have not been disclosed which may have a bearing on the buyer s decision to proceed with the deal. Issues that will be investigated at this stage include: Whether any changes to the property have the relevant planning permission If the property is at the centre of any ongoing disputes What insurance policies or relevant guarantees are in place If a right of way or public footpath runs through the property How utilities, including the gas and water supply, are accessed If the buyer needs to be made aware of any covenants restricting the use to which the property can be put It may take time to finalise the contract as correspondence passes back and forth between solicitors. Once the negotiations have concluded, a completion date will have to be agreed between the parties. This needs to have been agreed before the buyer and seller can exchange their contracts. Sometimes it is agreed that the exchange and completion will take place on the same day. That said, this may be difficult to arrange, particularly if the seller or buyer or both parties are part of a chain. Guide to conveyancing 3
5 2 Exchanging the contracts Once the buyer and seller are satisfied with the contract that has been drafted, the parties will sign the final copies. Exchange of contracts takes place by telephone after signature. It is very important to note that this is the point that the agreement becomes legally-binding. If either party attempts to withdraw from the deal after contracts have been exchanged, they risk being sued for breach of contract. The buyer will need to pay a non-refundable deposit. This is typically 10 per cent of the property s price, although a lesser amount may be negotiated. At this stage, the buyer s solicitors will also need to sign off the paperwork relating to the mortgage agreement and the transfer a document which needs to have been agreed and signed by both parties. 3 Completion On the date that has already been agreed, the seller will release the transfer document, title deeds and the keys to the property. The seller will receive the balance of the price of the house at this stage. This sum is the agreed price minus the non-refundable deposit that has already been paid. Guide to conveyancing 4
6
7 4 Post completion Issues that may still need to be dealt with at this stage include: Informing the freeholder and mortgage lender that the transaction has been completed Paying the Stamp Duty Making contact with the Land Registry to register the transfer of ownership. Official copies of the updated title will be sent to you and can be safely held at our offices free of charge until you re ready to deal with the property again The buyer and seller receive a statement of completion from their respective solicitor, including a summary of the relevant financial transactions. Contact Us Purchasing a new home for you and your family can be a stressful experience, whether you are a first time buyer or you are moving on to another property. However, you can be sure that our experienced residential team will have encountered most of the issues that arise before and will be able to advise on the best way forward. If you need advice from our residential property team, please do not hesitate to contact us. Guide to conveyancing 6
8 Our Conveyancing Team Margaret Marshall Partner Margaret graduated from Reading University in 1983 with an LLB, with Honours. She joined the firm in 1987, having been admitted as a solicitor the previous year, to take on general non-contentious work. She later became a partner but left to take maternity leave and bring up a family. Subsequently she joined Oxfam where she worked for five years, as a senior Legacy Officer ensuring the charity maximised gifts from legacies. margaret.marshall@rpj.uk.com Carole Page Associate Carole joined the firm in September 2014, having previously worked for a firm in Chesham since Originally employed there as a legal secretary, she was determined to become a fee-earner and embarked on a correspondence course to become a legal executive, a qualification she achieved in Carole was appointed as an Associate of the firm in April carole.page@rpj.uk.com Guide to conveyancing 7
9 Gillian Humphreys Consultant Gillian is a consultant in the firm. She was educated at Southampton University from where she graduated with an LLB honours degree. She later studied for the Law Society professional exams at The College of Law in Guildford. She joined the firm as an articled clerk in 1970, qualifying as a Solicitor in gillian.humphreys@rpj.uk.com Ashley Minott Solicitor Ashley graduated in History & Politics from Queen Mary (University of London) in 2011 and went on to complete her Law Conversion Course and Legal Practice Course. She practiced as a paralegal preparing Wills, Probates, Lasting Powers of Attorney and dealing with the Court of Protection for two years before joining Reynolds Parry Jones as a Trainee Solicitor in ashley.minott@rpj.uk.com Guide to conveyancing 8
10 Reynolds Parry Jones LLP 10 Easton Street High Wycombe HP11 1NP
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