| Below is the outline of the process as described by a | | | | forfeited and you may be sued for breach of |
| leading conveyancing law firm from the point of view | | | | contract. |
| of a buyer. | | | | Stamp Duty Land Tax (SDLT) |
| 1. Pre-exchange of contracts | | | | The completion of the SDLT form is your |
| Once instructed to proceed on your behalf your | | | | responsibility and you may complete this form on |
| conveyancing solicitor will write to the estate agent | | | | your own or ask your conveyancing solicitor to |
| and financial advisor (where applicable) to confirm our | | | | complete it on your behalf. However, when a |
| instructions on your behalf. Then he will write to the | | | | conveyancing firm act as your agent in completing |
| other side’s conveyancing firm with a list of | | | | the SDLT form they may make a reasonable charge |
| pre-contract enquiries, to confirm our instructions and | | | | for the additional work. In which case their charges |
| request them to send the draft contract papers to | | | | would be reflected in the estimate of costs provided. |
| us. Pre-contract enquiries are a set of standard | | | | Please note that there are strict time limits that must |
| questions aimed at obtaining more information about | | | | be followed. In the event the SDLT form is not |
| the property in question, such as: what furniture (if | | | | received by the Inland Revenue within 30 days of |
| any) is being left behind, the boundaries of the | | | | the date of completion, you will be charged penalties. |
| property, who owns and is responsible for any | | | | 3. Pre-completion |
| hedges or fences. If it is a leasehold property, we | | | | Between exchange and completion the following |
| obtain details of the managing agents, and discover | | | | takes place:- |
| whether the current owner is up to date with things | | | | Transfer |
| like service charge bills and ground rent. | | | | The seller will sign the transfer document. This is the |
| The next step for your conveyancing solicitor is to | | | | document that your conveyancing solicitor lodge with |
| carry out searches regarding the property you | | | | the Land Registry to prove the existing owner |
| propose to purchase. These will almost always | | | | agrees to the transfer of ownership of the property |
| include a local authority search and an environmental | | | | to you. |
| search. Some of the below searches would have | | | | Mortgage funds |
| been provided in the home information pack and as | | | | If there is a mortgage lender involved, your |
| such would not be required. | | | | conveyancing solicitor will contact them to release |
| Local authority searches usually take around six to | | | | your mortgage funds in time for completion. Please |
| nine working days to complete and will establish the | | | | note, to avoid late completion most conveyancing |
| following: proposals for any public works such as a | | | | firms request for mortgage funds two days prior to |
| new motorway, waterworks or alterations to road | | | | completion. This may mean that you will be charged |
| systems; whether any new developments are | | | | interest by the bank for 2 additional days. |
| planned in the vicinity of the property; any problems | | | | Final searches and enquiries |
| with water drainage systems; and any planning | | | | By this stage, Land Registry searches would have |
| restrictions that may affect your plans to renovate | | | | been completed. These searches disclose any |
| or alter the property. | | | | mortgages that are on the property and any |
| There may be other searches required, depending on | | | | disputes concerning the property. |
| the location of the property, such as a coal-mining | | | | Financial Statement |
| search or a search from a local railway network. We | | | | Your conveyancing solicitor will send you a financial |
| will inform you of any such requirement at the | | | | statement showing the amount required to complete |
| earliest. | | | | the transaction. This statement will detail all expenses |
| Draft Contracts | | | | incurred on your behalf or about to incur and includes |
| Upon receiving the draft contract from the | | | | our fees. It also states the stamp duty payable. |
| seller’s conveyancing firm, your conveyancing | | | | Building Insurance |
| solicitor will check the documentation and raise any | | | | From the point that contracts have been exchanged, |
| specific queries that arise | | | | you may become responsible for the property, which |
| | | | means you should obtain suitable building insurance to |
| The contract is then amended by mutual agreement | | | | cover the property. Buildings insurance should be for |
| between your conveyancing solicitor (on your behalf) | | | | the full reinstatement value (as specified in your |
| and the seller’s conveyancing firm. The contract | | | | valuation report) and your lenders interest should be |
| is a legal document drawn up by the seller’s | | | | noted on it. |
| conveyancing firm that sets out the terms of the | | | | 4. Completion |
| sale process. The contract will reflect details of the | | | | On the day of completion, your conveyancing solicitor |
| following:- property being sold; names of both the | | | | will send to the seller’s conveyancing firm via |
| buyer and seller; the property price and details of | | | | telegraphic transfer the purchase monies. The |
| anything else that has been negotiated to be included | | | | seller’s conveyancing firm will then confirm |
| with the sale; the date on which the transaction will | | | | receipt once they have received the money, and will |
| take place; and the completion date once all parties | | | | then authorise the seller to release the keys to you. |
| have agreed on this. | | | | Unless you state otherwise all correspondence from |
| | | | the day of completion will be sent to your new |
| Once your conveyancing solicitor is satisfied with all | | | | address. |
| the legal documents and replies to enquiries in | | | | After completion the following happens : |
| connection with the property, the contract is | | | | - The seller's conveyancing firm will forward the |
| approved and sent to both parties for signature | | | | transfer and title deeds to your conveyancing |
| 2. Exchange of contracts | | | | solicitor. |
| Deposit | | | | - Your conveyancing solicitor make an application to |
| On exchange of contracts of a purchase it is usual to | | | | the Inland Revenue to pay the stamp duty on the |
| pay to the sellers' conveyancing firm a deposit of up | | | | property. |
| to 10% of the purchase price, but it is sometimes | | | | - Your conveyancing solicitor make an application to |
| possible to agree to a 5% deposit. | | | | the Land Registry to register the property in your |
| Once we have your deposit in cleared funds, signed | | | | name. |
| contract and authorisation, your conveyancing solicitor | | | | Exception to the rules: simultaneous exchange & |
| can proceed to the exchange of contracts with the | | | | completion |
| seller’s conveyancing firm and agree a | | | | If the property is vacant and all parties are in |
| completion date. The deposit will be forwarded to | | | | agreement with this method of completion, your |
| the seller’s solicitors on exchange of contracts, | | | | conveyancing solicitor can arrange for contracts to |
| as security in case you do not proceed with the | | | | be exchanged and the transaction to be completed |
| purchase. (Please read the section below on Money | | | | on the same day. |
| Matters) | | | | 5. Registration |
| Exchanging contracts | | | | Once the property has been registered in your name, |
| Until the exchange of contracts, there is no legal | | | | we will send the title deeds to your mortgage lender, |
| liability on either the purchaser or seller to proceed | | | | who will hold on to these as security until the |
| and either party may withdraw from the transaction | | | | mortgage has been paid off. You will receive a letter |
| at any time. | | | | confirming registration of the property in your name |
| Once contracts have been exchanged (usually by a | | | | with a certified copy of the registration documents |
| telephone call between conveyancing solicitors) both | | | | showing your ownership of the property. |
| parties become legally bound by the terms and | | | | In a gist we can say that conveyancing process is |
| conditions of the contract and will be required to | | | | very much easier than before. Nowadays the skill |
| complete the contract. | | | | and good knowledge make the Conveyancing solicitor |
| The agreed completion date will be included in the | | | | perfect in this area of work. |
| contract; you will not be able to change the | | | | Phew! offers a highest-quality service at all times - |
| completion date once contracts have been | | | | without exception. It has all the checks in place to |
| exchanged. If you cannot complete on the | | | | ensure this. |
| contractual completion date your deposit may be | | | | |