Conveyancing can be undertaken by either a Solicitor or a Licensed Conveyancer. They will work on your behalf to complete the legal requirements. Conveyancing is the legal term used for the transfer of ownership of property from one person to another.
When Selling a Property
When the sale of a property is agreed you must put it in writing. This is called a memorandum of sale. At this stage the offer is not binding on either the seller or the buyer nor is either party bound to proceed with the sale so long as the words 'Subject to Contract' have been used. You should then pass this to your appointed Solicitor or Licensed Conveyancer.
Your Solicitor will then ask you the whereabouts of the title deeds to the property. The title deeds are required to enable a contract to be drawn up. This sets out the terms of the sale including the price and the relevant parties involved. This is sent to the buyers Solicitor for approval, along with a copy of the title deeds to prove that you are the legal owner of the property.
You should then receive a contents form and a sellers property information form which you need to complete and return. Once this information is returned it will be forwarded to your buyers Solicitor for him to investigate. He may raise some additional enquiries which your Solicitor will answer or they may refer to you for further information. At this stage your Solicitor will ask you to sign the contract, they are merely getting it signed in readiness for an exchange of contracts. You will not be committing yourself to the sale at this stage.
After the buyers Solicitor has completed his investigations you will need to agree with your buyer a date for completion. Once this is agreed your Solicitor will take final instructions that you are happy to proceed with the sale. Your Solicitor will then exchange contracts. At this point you will then be committed to the transaction and the terms of the contract cannot be changed.
After exchange of contracts the buyers Solicitors will forward the transfer deeds to your Solicitor. This is the document that formerly passes ownership of the property from the seller to the buyer. This must be signed prior to completion. Your Solicitor will then request a final settlement figure from the lenders if appropriate and send a completion statement to you telling you what monies will be payable to you.
On completion day your Solicitor will advise you once the sale monies have been received and/or the mortgage has been redeemed. Your keys will then be transferred to the buyers Solicitors.
When Buying a Property
When the purchase of a property is agreed you must put it in writing. This is called a memorandum of sale. You should then pass this to your Solicitor. At this stage the offer is not binding on either the buyer or the seller nor is either party bound to proceed with the sale so long as the words 'Subject to Contract' have been used. You should then pass this to your appointed Solicitor or Licensed Conveyancer.
After your Solicitor has received details of your purchase they will contact the sellers Solicitor and request the contract and supporting documents. This will include copies of the title deeds which they will examine in detail and if there are any legal or general enquiries they will be raised at this point. You should ensure your mortgage application is submitted, if appropriate.
Your Solicitor will then submit your local search application to the Local Authority. Once this is returned and satisfactory and they have your mortgage offer then you will be asked to sign the contract. You will not be bound by the contract at this stage.
Once your Solicitor has obtained your final instructions and all parties have agreed a completion date, then contracts will be exchanged and a deposit will be paid to the seller (this is held by the Solicitor), usually between five and ten per cent of the purchase price. If you are selling a property the deposit paid by your buyer will be passed straight to your seller and depending on your new purchase price, you will usually not need to find additional funds. You are now legally bound by the contract.
Your Solicitor will now carry out final searches to ensure that the property is still the seller's to sell. They will also request the mortgage funds from your lender and prepare the Transfer Deed, which will put the property into your name and arrange for signature of this and the Mortgage Deed.
On the completion date your Solicitor will send the purchase monies to the sellers Solicitor and advise you of completion and release the keys.
Following the completion your Solicitor will pay the Stamp Duty out of the proceeds and submit the relevant application for registration to
H M Land Registry.
Registration is then confirmed to you and any Lender.