Conveyancing process

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There follows information regarding the conveyancing services we provide, the conveyancing process and an estimate of timescales.    Hopefully this will demystify the process. 

All conveyancing is undertaken by Geoff Gilbert the owner of Hardwick Legal who has over 45 years’ experience in conveyancing.      We are happy to provide a written estimate of our legal fees and likely disbursements at the outset in all property transactions.    

Our legal fees are what we charge you for the work we carry out on your behalf.  The disbursements are payments we make on your behalf to a third party such as search fees.    We may ask you to pay money on account of disbursements before incurring them.   We may also require payment on account of our legal fees.

Please click on the following link for an estimate of our conveyancing fees and disbursements in residential property transactions.

Residential Property Conveyancing Fees

Our Legal Work

Our role is to carry out the legal work in a property transaction to ensure that it is completed as quickly and efficiently as possible.   We check the paperwork to ensure that it is in order and prepare any legal documents required to ensure the transaction is completed.   Points to note.

• We will not carry out a physical inspection of the property. When we act for a buyer we will not advise on the valuation of the property nor the suitability of the buyer’s mortgage nor any other financial arrangements.   

• We ask a number of questions at the outset regarding the proposed transaction so we can ascertain if there are any particular circumstances relating to the transaction.

• The conveyancing of a property may involve tax implications or necessitate the consideration of tax planning strategies. We will not advise you on any tax implications and tax planning strategies unless we agree in writing to do so. 

• When we act for a buyer, there may be planning implications if the Buyer intends to carry out works to the property. We will not advise on any planning implications unless we agree in writing to do so.

Stages in the Conveyancing Process

1. Sale and Purchase

There are two critical stages in the sale and purchase of a property, exchange of contracts and completion.

Exchange of contracts is the process by which the Seller’s Conveyancer and the Buyer’s Conveyancer exchange the copy of the contract that their client has signed.  The Buyer pays a deposit on exchange of contracts which is usually 10% of the purchase price of the property.  

Until contracts are exchanged either party can withdraw from the matter generally without any obligation to compensate the other party.  

If the Buyer has paid a non-returnable reservation fee to a Seller such as a builder in the purchase of a new property, the Buyer will generally forfeit the reservation fee if the Buyer withdraws from the purchase of the property or the Seller withdraws from the transaction because the Buyer does not exchange contracts within an agreed timescale.  

On exchange of contract the parties agree the completion date.   The completion date is the date on which the seller and buyer agree that completion of the sale and purchase of the property is to occur.  Once contracts have bene exchanged the Seller and Buyer are under an obligation under the contract to complete the sale and purchase of the property on the completion date.  The contract contains penalties if a party defaults.

Completion is when completion of the sale and purchase of the property actually occurs.    The Buyer becomes the legal owner of the property on completion.

Generally, there are certain stages that occur in each sale and purchase.  Those stages and when they generally occur are as follows.

Before exchange of contracts

• Taking instructions. The Seller’s Conveyancer and the Buyer’s Conveyancer each take instructions from their client regarding the transaction.    
• The Seller’s Conveyancer sends the draft contract to the Buyer’s Conveyancer together with copies of the title deeds.
• The Seller’s Conveyancer sends standard forms to the Buyer’s Conveyancer which contain the Seller’s replies to various questions regarding the property and a list of any fixtures and fittings included in the sale price.
• The Buyer’s Conveyancer applies for the usual pre-contract searches. The searches usually include a local search from the local authority, a water and drainage search from the water and sewage supply company, an environmental report and a mining search where the property is in a mining area.   Any other relevant searches will be obtained.   All searches will be obtained from a search agent.
• The Buyer’s Conveyancer checks the title deeds and the standard forms supplied by the Seller’s Conveyancer and approves the draft contract.
• The Buyer’s Conveyancer returns the draft contract with any proposed amendments to the Seller’s Conveyancer and raise any enquiries before contract of the Seller’s Conveyancer which are questions regarding the property arising from the title deeds and the standard forms supplied by the Seller’s Conveyancer.
• The Seller’s Conveyancer replies to any enquiries before contract raised by the Buyer’s Conveyancer.
• The Seller’s Conveyancer and the Buyer’s Conveyancer agree the wording of the contract.
• The Buyer’s Conveyancer drafts the transfer deed that will effect the transfer of the property from the Seller to the Buyer and agrees the wording of the transfer deed with the Seller’s Conveyancer.
• The Buyer’s Conveyancer receives the result of the pre-contract searches and raises any enquiries before contract of the Seller’s Conveyancer on matters revealed in the searches.
• The Buyer receives the mortgage offer if the Buyer requires a mortgage to fund the purchase of the property.
• The Seller’s Conveyancer and the Buyer’s Conveyancer report to the Seller and the Buyer respectively on the transaction and ask their respective clients to sign a copy of the contract.
• The Buyer pays the deposit due on exchange of contracts to the Buyer’s Conveyancer.
• The Seller’s Conveyancer and the Buyer’s Conveyancer agree the completion date.

Exchange of contracts

• The Seller’s Conveyancer and the Buyer’s Conveyancer effect exchange of contracts usually by telephone.
• If the matter is in a chain of transactions exchange of contracts is synchronised in all transactions in the chain of transaction so that exchange of contracts takes place in all transactions on the same day.

There is a chain of transactions where the seller is buying another property, or the buyer is selling another property, and all of the transactions are linked and dependent on each other.

Between exchange of contracts and completion

• The Seller’s Conveyancer sends to the Buyer’s Conveyancer the copy of the contract that the Seller has signed and the Buyer’s Conveyancer sends to the Seller’s Conveyancer the deposit and the copy of the contract that the Buyer has signed.
• The Seller and the Buyer sign the transfer deed if they have not already done so.
• The Buyer signs the mortgage deed if the Buyer is obtaining a mortgage.
• The Seller’s Conveyancer obtains a repayment statement for any mortgage that the Seller may have and requests a copy of any Estate Agent’s account.
• If the Buyer’s Conveyancer is having a mortgage the Buyer’s Conveyancer requests the mortgage funds from the lender.
• The Buyer’s Conveyancer make any pre-completion searches.
• The Buyer’s Conveyancer sends their invoice and a completion statement setting out any monies due from the Buyer on completion and obtains the amount due from the Buyer.
• The Seller’s Conveyancer sends their invoice to the Seller and a completion statement setting out the amount due to the Seller. In some matters money may be due from the Seller and the Seller’s Conveyancer will obtain the amount due from the Seller.

Completion

• The Buyer’s Conveyancer sends the balance of the purchase price and any other money payable to the Seller’s Conveyancer.
• The Seller’s Conveyancer and the Buyer’s Conveyancer complete the transaction usually by telephone and the transfer deed and any mortgage deed are dated.
• The Seller’s Conveyancer authorises the Seller or their estate agents to hand over all keys to the Buyer to enable the Buyer to move into the property.

After completion

• The Seller’s Conveyancer repays any mortgage that the Seller has, pays any estate agent’s invoice and pays any net proceeds of sale to the Seller or retains it to enable the Seller to complete their purchase if they have one.
• The Buyer’s Conveyancer reports the purchase of the property to H M Revenue & Customs and pays any Stamp Duty Land Tax payable.
• The Buyer’s Conveyancer applies to register the Buyer’s purchase of the property at H M Land Registry.
• The Buyer’s Conveyancer reports to the Buyer that completion of the registration of the Buyer title to the property has been completed by H M Land Registry.

The stages prior to exchange of contracts and between exchange of contracts and completion may not occur in the sequence outlined above.   Also, some of the stages can take place simultaneously.  

How Long Does It Take

The length of time that it takes to complete the sale or purchase of a property depends on the circumstances.    On average completion of the sale and purchase of a property takes place around 15 - 18 weeks after the Seller accepts the Buyer’s offer for the property.    Every sale and purchase has its own unique circumstances that will determine the length of the process.    The main factors that can deterring the length of the process include the following.

• Your sale or purchase is in a chain of transactions.
• Matters revealed in the title deeds to the property.
• Matters revealed in any survey carried out.
• Matters revealed in the pre-contract searches.
• Matters raised in enquiries before contract.

The most important factor is whether your sale or purchase is in a chain of transactions.   As mentioned above, there is a chain of transactions where the seller is buying another property, or the buyer is selling another property, and all of the transactions are dependent on each other.     In a chain of transactions all parties cannot exchange contracts until all of the sellers and buyers in the chain are in a position to exchange contracts.     

Once all parties are in a position to exchange contracts a completion date can be agreed.  

2. Mortgages and Remortgages

A mortgage is where you are taking out a new mortgage over your property and the property is not subject to an existing mortgage.   A remortgage is where the property is subject to an existing mortgage, and you are having a new mortgage and paying off any existing mortgages.

 

Generally, we will act for both you and your lender in a mortgage or remortgage. 

 

Most lenders in the UK are members of UK Finance.    UK Finance has issued a guidebook which is commonly referred to as “the CML Handbook”.  The CML Handbook contains comprehensive instructions for Conveyancers acting on behalf of lenders in residential conveyancing transactions.    We cannot complete the mortgage or remortgage unless the property complies with the terms and conditions in the CML Handbook.  

 

The key stage is completion which is when we complete the mortgage or remortgage.  There are generally the following stages in a mortgage and remortgage.

 

Before completion

• We take instructions from you regarding the transaction.
• We obtain the title deeds to the property or copies of them from the Land Registry.
• We apply for any searches which the lender requires us to obtain save where the lender is prepared to accept search insurance. As with a purchase, the searches can include a local search from the local authority, a water and drainage search from the water and sewage supply company, an environmental report and a mining search where the property is in a mining area.   Any other relevant searches will be obtained.   All searches will be obtained from a search agent.  
• We receive the result of any searches that the lender requires us to make.
• You receive your mortgage offer.
• We report to you and the lender on any matters that need to be approved by the lender or which do not comply with the terms and conditions of the CML Handbook, or which may affect the lender’s security and ask the lender if they are still prepared to proceed with the mortgage.
• We report to you regarding the mortgage offer and obtain your signature to the mortgage deed that will charge the property to the lender to secure repayment of the monies you are borrowing.
• We check with you if there are any adult occupiers of the property in addition to the proposed borrower and obtain any consent required from any adult occupier to the proposed borrower granting the mortgage.
• Agreeing a proposed completion date with you which is the date on which it is intended that we complete your mortgage or remortgage.
• We report to your lender and request the mortgage monies for completion.
• If you are remortgaging we obtain a repayment statement from all existing lenders and any loans that your new lender requires you to repay.
• We make pre-completion searches including checking at H M Land Charges Registry if you appear on the register of bankrupts.
• We inform you of the amount required to repay any existing mortgage or loans that your lender requires you to repay.
• If you are remortgaging or the lender requires you to repay any loans and there is a shortfall we collect the monies from you to cover the shortfall.

Completion

• We receive the mortgage advance from the lender.
• If your lender is happy to proceeded on the basis of search insurance we effect the insurance policy and pay the premium and Insurance Premium Tax.
• We complete of the transaction and dating the mortgage deed.

After completion

• We repay any mortgage and loans that your new lender requires us to repay and pay any net proceeds to you.
• We apply to register the new mortgage of the property at H M Land Registry.
• We report to the lender that completion of the registration of the Buyer title to the property has been completed by H M Land Registry.

The stages prior to completion may not occur in the sequence outlined above.   Also, some of the stages can take place simultaneously.  

How Long Does It Take

The length of time that it takes to complete the mortgage or remortgage of a residential property depends on the circumstances and in particular whether you instruct us to act before or after you receive your mortgage offer.  

If you instruct us to act before you receive your mortgage offer from the lender, we expect that completion of your mortgage or remortgage will take place 4 - 6 weeks after we are instructed or if earlier two weeks after you receive your mortgage offer.  

If you instruct us to act when you receive your mortgage offer from the lender, we expect that completion of your mortgage or remortgage will take place 4 – 6 weeks after we are instructed where the lender requires us to make searches and 2 – 4 weeks after you receive your mortgage offer where your lender will accept search insurance.    Every mortgage and remortgage has its own unique circumstances that will determine the length of the process.    The main factors that can deterring the length of the process include the following.

• Matters revealed in the title deeds to the property.
• Matters revealed in any survey carried out.
• Matters revealed in any searches that your lender asks us to make.