The Conveyancing Process
As soon as the sale and purchase have been agreed, the Estate Agents will send out the details to the Seller, the Buyer and their respective Conveyancers.
The Sellers Solicitors will send out a Contract package to the Buyers Solicitors with details of the title and Property Information Forms which have been completed by the Sellers. Those forms will cover a number of issues relating to the property such as responsibility for boundaries and which items are to be left upon completion.
Upon receipt of the completed Contract Package, the Buyers Solicitors will carry out the searches with the Local Authority and other appropriate bodies, copy the documentation to the Buyers themselves and also raise any enquiries which are considered to be appropriate. In the meantime, if the Buyers intend to have a survey and/or obtain a mortgage then the Mortgage Application and the survey will be put in hand.
When the Buyers Solicitors have received satisfactory replies to enquiries and the results of their searches and the Buyer has the result of any survey and Mortgage Offer the Buyer will be advised as to the signing of the Contract.
If the Sellers are ready, both parties then proceed to an exchange of Contracts. Upon exchange of Contracts, a deposit of 10% of the purchase price is normally paid although if the Buyer is selling a property at the same time, the deposit that has been received on the sale will often be capable of being used for the purchase. Exchange of Contracts is the moment that binds both the Seller and the Buyer. After that, neither party can change their mind nor can the price be re-negotiated.
In the Contract, there is the completion date. On that date, the Seller is obliged to give vacant possession and the Buyers Solicitors will transfer the balance of the monies, having drawn down any Mortgage Advance. Upon receipt of the monies by the Sellers Solicitors, the Buyers will then be entitled to obtain the keys.
If either the Seller has a related purchase or the Buyer a related sale which must tie in with the other transaction, exchange of Contracts will have to take place on all the transactions at the same time and, normally, the completion dates will be on the same day.
After completion, the Buyers Solicitors will arrange for the payment of any Stamp Duty Land Tax and attend to the registration of the Buyers title and any lenders charge at the Land Registry. The Sellers Solicitors will pay off the Sellers mortgage and account to the Seller for the net proceeds of sale.
For further information please contact a member of our Conveyancing team.