Conveyancing - Step by Step Explained by Express Estate Agency
Conveyancing is the legal transference of property rights from the owner to the buyer. It is followed through by solicitors or licensed conveyancers.
Online, April 9, 2014 (Newswire.com) - Conveyancing - step by step
Once an offer is accepted between buyer and seller, the complicated process of transferring the legal rights of the property to the buyer begins. It is called conveyancing.
Conveyancing is generally carried out by a solicitor or licensed conveyancer. It is also possible to do it yourself but it is a lengthy, troublesome procedure and better left to the experts. Let's see what processes are involved in conveyancing.
INITIAL DRAFT CONTRACTS AND NEGOTIATION
Solicitor of the buyer as well as the seller will draft an initial contract that contains all details required.
The seller's contract will include:
> The sale price
> Any restrictions imposed on the property regarding public rights or permissions to build or rent
> Property descriptions with area limitations, fixtures and fittings in the house and integrated systems such as drainage, electricity and sanitary etc.
> Property titles and date/time of completion
Once the draft is complete, the solicitors share information and tally the details. Both solicitors are given the right to question the other about any property details that are unclear. Normally, after the initial draft, the buyer is expected to do a double check on the details, including the information about its lease, its present condition etc.
In case, the buyer is purchasing the property on mortgage basis, it is obligatory to provide a legal search report to the lender. Conveyancers carry out legal searches on the house on behalf of the buyer before signing of the contract.
> LAS is a property-only search. It provides details about the planning applications on the property, road schemes in the vicinity, any hint of land contamination or radioactive gas near the property etc.
> Land Registry Check, the seller is to make sure the land to be sold is registered in his name.
> Flood risk check, this search dictates if there are any flood risks in the particular area and has there been any floods in the previous 75 years.
> Water authority search, illustrates in detail the water and drainage conditions of the property. Where are the water pipelines coming from and whether they will affect any development in future or not?
> Environmental search, carried out by Environmental agency and informs of any risks of flooding, land sliding, erosion, landfills etc.
> Chancel repair search, it is to determine whether the house lies under the liability to pay for repairs to a local parish church or not?
MORTGAGE AND DEPOSITS
The solicitor goes through the mortgage details and conditions of the buyer ensuring that all finances are in order. Mortgage valuation is done to make sure the buyer will be able to return the mortgage loan in certified time. Once the mortgage is cleared and survey results received are satisfying, deposit is to be made.
Deposit is generally 10% of the value of the house, but on negotiation it could be settled less than that. Either way if the buyer decides to pull out of the deal after contract signing, he will lose his deposit. In case the deposit made was less than 10%, he will owe the remaining amount to the seller.
CONTRACT SIGNING AND EXCHANGE
Once both parties are satisfied with the contract details, checks and surveys, the contracts are finally signed and exchanged between buyer and seller. After this, the buyer is legally bound to make the purchase and will not be able to pull out of the deal without compensation. In case the seller tries not to sell the house, the buyer can sue him.
> Money is transferred.
> Documents are handed over.
> Seller moves out of the house and leaves the key with the agent.
> Buyer collects the keys from the agent and moves in.