What Is Conveyancing?

Conveyancing is the legal process of transferring property ownership from one party to another. It is a critical component of buying or selling a house in the UK.

It encompasses a range of tasks, including conducting property searches, handling contracts, managing the exchange of funds, and ensuring that the transaction complies with legal standards. This process ensures both buyer and seller meet their obligations and that the property transfer is legally sound and binding.

Given its complexity and the legal intricacies involved, conveyancing is typically carried out by solicitors or licensed conveyancers who specialize in property law. Understanding the conveyancing process is crucial for buyers and sellers alike, as it helps them navigate the property market successfully.

It provides a roadmap of what to expect during a property transaction and highlights the importance of professional guidance in securing a smooth and efficient transfer of ownership.

Finding the right conveyancing solicitor can reduce the stress of buying or selling a house, so take your time when choosing.

Conveyancing in a nutshell

A conveyancer is a specialised property solicitor who ensures the legal transfer of a property from one party to another. Both parties require conveyancers to ensure their legal interests are looked after.

It’s important to wait until you’ve confirmed your lender before instructing your solicitor to start the conveyancing process. This is because not all solicitors can work with all lenders. Without doing this, you risk incurring more fees by having to find a licensed solicitor who can work with your lender.

A buyer’s conveyancer will arrange for them to take control of the title deeds. Their key task is to ensure the buyer legally becomes the owner of the property and its land when contracts are signed, and funds are deposited on completion day.

On the seller’s side, their conveyancer will ensure the sale proceeds are all deposited correctly upon exchange and completion.

The general tasks a conveyancer will carry out as part of the purchase and sale process include (but are not limited to):

Instructing searches

Instructing searches is a vital step in the conveyancing process. It involves inquiries to local authorities and utility firms about any past, present, or future issues that might affect the property.

These searches can uncover a range of potential problems, including planning permissions, local land charges, environmental hazards, drainage issues, and even lesser-known ones like a chancel repair search.

The goal is to ensure the buyer is fully aware of any factors that could impact the property’s value or usability, providing a layer of protection and peace of mind.

The results of these searches can significantly influence the decision-making process. If issues are identified, it can lead to further negotiations on the price, demand repairs, or even cause the buyer to reconsider the purchase.

It’s a crucial step that requires meticulous attention to detail and understanding how various findings could affect the property transaction. Conveyancers play a key role in interpreting search results and advising clients accordingly.

Draft, agree and check contracts

Drafting, agreeing, and checking contracts are central to the conveyancing process, where the legal framework for the property transaction is established. The contract outlines the terms of the sale, including the price, property boundaries, fixtures and fittings, and any other conditions agreed upon by the buyer and seller.

This phase requires careful coordination and negotiation skills to ensure that both parties’ interests are fairly represented and protected.

Once drafted, both sides must thoroughly review and agree upon the contract details before proceeding. This includes a meticulous check for accuracy and completeness to avoid future disputes.

The conveyancer’s role is crucial at this stage, ensuring the contract is legally sound, all agreements are correctly documented, and any potential issues are addressed before the exchange of contracts takes place, solidifying the commitment to the transaction.

Communicating with mortgage lenders

Effective communication with mortgage lenders is another critical aspect of the conveyancing process. Conveyancers act as intermediaries between the buyer and the lender, ensuring that all legal requirements set by the lender are met before funds are released.

This includes confirming the property’s value, ensuring the mortgage offer matches the buyer’s expectations and purchase price, and addressing any special conditions the lender sets.

This communication must be precise and timely, as delays or discrepancies can lead to significant setbacks in the transaction timeline.

The conveyancer’s expertise in navigating the legal aspects of mortgage agreements ensures that the buyer is in a strong position to proceed, and the lender’s interests are also protected, facilitating a smoother path to completing the property purchase.

Stamp Duty payments

Handling Stamp Duty payments is an essential function of the conveyancing process in property transactions. Stamp Duty is due on properties purchased over a certain price threshold, with rates varying based on the property value and buyer’s circumstances, such as first-time homebuyers receiving certain exemptions.

It’s important to note that Stamp Duty rates and exemptions can change. Ensure you check the most current rules and rates to understand how much Stamp Duty you will owe when you purchase your property.

Conveyancers calculate the amount of stamp duty owed, advise clients on applicable reliefs or exemptions, and ensure timely payment to avoid penalties.

The conveyancer’s role includes submitting the stamp duty return and making payment on behalf of the buyer, typically within 14 days of the transaction’s completion.

This task requires a thorough understanding of the latest Stamp Duty regulations and meticulous attention to detail to ensure accurate calculation and compliance. It reflects the conveyancer’s critical role in managing legal and financial obligations in property transactions.

Land registry transfers

The final step in the conveyancing process involves transferring land registry documents and officially recording the change of ownership. This step is crucial, as it legally recognises the buyer as the new property owner.

Conveyancers prepare and submit the transfer documents to the Land Registry and any relevant supporting documents required for the registration process. This includes ensuring that all details, such as the property description and buyer’s information, are accurately reflected.

The conveyancer also handles any issues arising during registration, such as discrepancies in the property’s title or a public footpath running through the property’s boundaries. Once the registration is complete, the buyer is issued a new title deed, marking the official completion of the property transaction.

This stage underscores the importance of a conveyancer’s role in ensuring that the legal transition of property ownership is executed correctly and efficiently, finalising the property transaction.

This list is far from exhaustive, and often, a conveyancer will be required to do more, such as confirming the source of a deposit or arranging purchases through a special government scheme, such as the First Homes Scheme.

Why do you need conveyancing?

It’s a legal requirement if you want to buy a house. And whilst, technically speaking, it’s possible to carry out the work yourself, most (if not all) mortgage providers will require you to instruct a fully qualified conveyancer. They do so to lower the risk for you and your lender that no mistakes are made during the purchase.

An experienced conveyancer can help identify any issues with a property you might miss before buying it. For example, their searches may reveal past or potential issues with subsidence or boundary disputes involving the property.

How much does conveyancing cost?

There is no single answer to this. The fees you are charged will not necessarily depend on the property’s purchase price. The legal work required and the effort involved could be the same for a multi-million-pound property as for a starter home.

Conveyancing costs can vary widely depending on the region, the complexity of the transaction, and the specific conveyancer you choose. Some conveyancers may offer discounted rates for first-time buyers or those using government schemes, so it’s important to inquire about special pricing if you qualify.

Conveyancers structure their fees differently, and every house sale is unique. Therefore, conveyancing costs can vary dramatically, regardless of the purchase price. A rough guide is that prices can cost anywhere from £750 to £2000.

The more complex your house sale, the more your conveyancing fees will likely cost and vice versa. Your conveyancer will require payment for the time they have put into your property purchase, so the more involvement needed from them, the more you will have to pay. They will charge for services such as searches, any calls they have to make, any documentation they have to draw up or for Land Registry administration.

How to choose a conveyancer

Given the importance of conveyancing and the subsequent costs, it is vital to know how to choose the right one for your needs.

Before instructing a conveyancer, therefore, it is a good idea to:

• Check their credentials: You can easily do this online by looking at past reviews or ratings they’ve received on comparison websites, or by using a trusted source like the Law Society’s solicitor directory to ensure they are fully qualified and regulated.
• Check their fee structure: As mentioned above, conveyancers all structure their fees differently. Before instructing a solicitor, ask them how they charge and for what. Be clear on what they include as standard in their fees and what is extra. While this may not give you an exact quote for your final conveyancing costs, you will better understand what a conveyancer will eventually charge you.
• Check their process: Not every conveyancing firm will assign you a dedicated point of contact for your case. These are known as case handlers, and while not necessary, they can be helpful when contacting your firm for an update or with any questions.