The process of selling and buying a home can be difficult, even at the best of times. There are so many steps and services needed to complete a sale, many of which, especially for first-time buyers, are not fully understood why we need them or what for.
With interest in moving home due to increase again following the lockdown, we have a look at what conveyancing is, and why you need it.
Conveyancing is the transfer of the legal title of a house from one person to another. There are normally two stages to this – the first being the exchange of contracts, the point at which the terms of the deal are fixed, and the second being the completion, where the legal title passes.
To make sure that the exchange of contracts goes smoothly, and to ensure everything remains legally sound, the conveyancing system adheres to a strict process.
The Conveyancing Process: how it works
Initial Paperwork and Draft Contract
Once an offer has been accepted, the seller’s solicitor will draft the contract – the conditions of the sale, the terms of the deal, the price, and any relevant particulars. The seller will provide information about the property, which will be checked by the solicitor.
Introductory Enquires from Buyer’s Solicitor
After the buyer’s solicitor has checked all the initial paperwork, the solicitor will make checks regarding the property and the owner, and quiz the seller’s solicitor on any issues that may arise. Issues regarding the local area, rights of way and boundary disputes will also be included in these enquires.
Organising a Survey and Searches
Next comes the survey, organised by the buyer’s solicitor. This checks the condition of the building and the surrounding land for issues such as drainage, flooding, environmental issues, and planning permissions.
Approval of Draft Contract
Both solicitors will negotiate terms on the draft contract, and when both parties are satisfied, the contract will be made official and can be signed.
Exchange of Contracts
The seller and buyer now commit to the transaction and if they later back out or try and change the terms of the deal will suffer financial penalties and be liable to for any loss suffered by the other party.
The mortgage money is requested and sent to the buyer’s solicitor and the final financial statements are prepared. All the final parts are done so everything is ready for the day of completion.
On the completion date, and the seller is moving out, the buyer’s solicitor sends the purchase money, and the keys are released to the buyer.
If you need a property solicitor in Surrey, come and chat with us today!