Conveyancing is the process of moving residential property from one party to another. It is a generally used term in real estate transactions when buyers and homeowners transfer ownership of real estate,which could be land,property,or a home.
The process requires a tool of conveyance which is usually a legal record such as a contract,lease,title,or a deed. The record carries information which includes the agreed-upon purchase cost,the date of actual transfer,as well as the obligations and responsibilities of both parties.
Conveyancing is usually done in two stages:
- The exchange of agreements; at which phase all the terms of the deal are decided and,
- The conclusion of the deal where the legal title passes on to the customer
Who Generally does Conveyancing?
Conveyancing is usually done by a legal representative known as a conveyancer. The conveyancer could be a solicitor,residential property lawyer or a licensed conveyancer. All lawyers are qualified to do conveyancing; however,not all of them have the required experience.Most real estate transactions involve that a property loan of some sort be taken out. As a result,property loan lenders have a list of conveyancers whose services they would prefer.If you choose not to use a conveyancer from their certified list,you may be required to pay a fee to go somewhere else. If you do need help then get in touch with Chris Stevenson Conveyancing
What Exactly do Solicitors and Conveyancers Do?
When a solicitor or conveyancer gets their directions from you,the following are the services you should expect from them:
They will conduct searches within organizations such as local authorities and utility companies. These searches are essential because they ensure that there are no plans afoot – such as building plans – on the land you intend to buy. They also reveal if there are any potential issues associated with the residential property,such as:
- Whether sewers are running close to the residential property
- Whether the area is categorised as a flood risk
- Whether unresolved financial liabilities are hanging over it from past inhabitants
Then,they will inform you of possible costs you can incur,such as stamp duty. They will also check out the agreements drawn up by the solicitor or conveyancer of the other party.The written agreement will include essential details like the cost of purchase or sale. They will also liaise with your property loan lender to ensure that they have all the information they need to proceed with your property loan.
Your solicitor such as Chris Stevenson or conveyancer will register your ownership with the Land Registry as the new owner of the residential property if you are the customer.
What Course Of Action does Conveyancing Follow?
The process of conveyancing occurs from two ends – the customer’s end and the vendor’s end. If you are the vendor,the process is as follows:
- You instruct your conveyancer.
- Your conveyancer confirms your directions through a letter which states the terms of business and the cost of fixed fees.
- Your conveyancer carries out a proof of identity check and gives you some forms to fill which will provide information about the residential property you are selling.
- Once you fill the forms,your conveyancer will need the title deeds or official copies of the title register and any other records the Land Registry requires. You will also need to release details of any existing property loan and the outstanding amount.
- Your conveyancer then prepares the draft written agreement and any supporting written agreement documentation to send to your customer’s conveyancer. He or she also answers any pre-contract enquiries raised by your customer.
- Once your customer’s conveyancer expresses satisfaction with the results of their searches and the answers to their pre-contract enquiries,they confirm the receipt of a property loan offer if any.
- You and your customer agree on a completion date,and you both commit to the deal legally. Your conveyancer will help you get a settlement figure to repay the outstanding amount on the property loan if any. Your customer’s conveyancer then drafts a transfer deed and sends to your conveyancer.
Your conveyancer then checks the transfer deed,ensures that all is in order and sends it to you to sign,thus signaling the conclusion of the deal.As a buyer,the conveyancing process is the same as your conveyancer looks out for your interests in the process outlined above.
Can I do my Own Conveyancing?
The short answer is yes; you can do your conveyancing yourself. However,you shouldn’t do so,especially if you are buying real estate. If you are buying with a property loan,or selling to somebody who is buying with a property loan then you will not be permitted to handle the deal yourself. Lenders have this policy to protect their own interests as specialist conveyancers have specialist indemnity insurance.
Conveyancing is a complicated and time-consuming process. It is also a risky business as it could turn disastrous in the blink of an eye. It is a detail-oriented process and one which could hurt you if you miss a crucial detail that only becomes apparent after you complete the deal.Have you ever heard of ‘caveat emptor’? It is a common law principle which means ‘let the customer beware’,and it applies to residential property in the United Kingdom.
Thus,if you do the conveyancing yourself and a controversy pops up,you have no recourse against the vendor. The sad truth is that in some cases,homeowners do not have the legal right to sell the properties they are marketing. With a licensed and experienced conveyancer,you can avoid this pitfallby calling Chris Stevenson