A Guide to Conveyancing for Sales and Purchases of Residential Properties
Selling or purchasing a property is a substantial financial commitment. The laws associated with the purchase of property can be complicated and so ensuring that you know the procedure to make it as straightforward as possible.
What is Conveyancing?
Conveyancing is the process of buying or selling a property through legal means. This involves a mutual transference of ownership from seller to buyer. The first step occurs once an offer is accepted on the property and the transaction will be completed once the keys are in your hand.
What to Expect as a Buyer
Knowing what to expect as a buyer is essential towards completing the purchase as comfortably as possible. This includes being aware of what to look out for during the process which will save problems further down the line with regards to the condition of the home among other factors.
Before starting, buyers should seek out a solicitor to aid in guiding them through the process. Following this, the solicitor will go over the draft contract as well as contacting the seller’s solicitor.
The property will need to be inspected for any damages and additional potential issues to ensure that everything in the seller’s contract is truthful.
Your mortgage will need to be arranged to ensure you have the necessary fund available. When this is completed, you can sign the contract and then exchange it with the seller and agree to a completion date.
Before the completion date, you have 30 days to pay the seller and apply to have the deed transferred to your name and arrange a move in date.
What to Expect as a Seller
After you have agreed on a price with the estate agent, there will be several procedures that need to complete before the sale can be finalised. After receiving a final offer from a buyer, you should employ a conveyancer of your own to carry out the process.
There will also be detailed questionnaires including the TA 6, which will cover things such as boundaries, neighbor complaints, proposed development in the area, council tax among others. This is done to encourage transparency between seller and buyer.
There will also be either the TA7 or TA9, which applies if you do not own the freehold and so will be required to give more information on either the leasehold (7) or common hold (9).
The TA10 form covers fittings you would like to leave within the property.
Finally, TA13 requires technical information about details of finalisation, handover, the how and where of completion, and promises that the house is free of mortgages and liability claims. All forms must be completed truthfully and to the best of your knowledge.
With this completed, your solicitor will create a draft contract to be shared with the buyer. Typically, there will be negotiations which include the date of completion (usually 7 – 28 days), fixtures included in the sale and their price. As mentioned, the buyer will also have a survey on the property completed.
There will need to be a date agreed with the buyer to exchange contracts and this exchange shall be done between both parties’ solicitors and when this is completed, sellers are legally bound to sell the property. With this done, either party who backs out are liable for legal action should the buyer fail to complete the purchase, or the seller backs out.
Sellers will receive the deposit (10%) and will have the chance to check that all agreed fixtures and fittings are still in the property.
On completion day, the keys will be handed over by the estate agent with any spares left in the property. Sellers or the solicitor will receive outstanding sales price, and the ownership documents will be provided to the buyer with remaining mortgage payments distributed by the solicitor.
Both parties will need to pay the conveyancer for their services. Along with these fees, there will also be disbursement fees which can include:
- Anti-money laundering checks (£6 – £20)
- Title deeds (£6 for basic, plus £3 per each additional document, £25 for leasehold properties)
- Searches (£250 – £450)
- Property fraud fee (~£10)
- Transferring ownership (averages between £200 – £300)
- Bank or Telegraphic transfer fee (£20 – £30)
- Stamp duty land tax (only payable if the property is worth more than £125,000)
- Leasehold properties (£100 – £1000)
Contact Gulbenkian Andonian Solicitors today for assistance with your sales and purchase of property.