The property market goes through many different shifts and changes even in the toughest of financial times and properties will still continue to be bought and sold. When properties change hands and transfer from one person to another, it is important to understand the different types of transactions that take place and how they work.
Legal conveyancing is the safety net for buyers and sellers throughout any purchase, sale, or transfer of property. It takes place in many different forms and across the two major phases of the exchange of contracts and the completion. It is therefore important to understand how it works and what it involves.
Conveyancing needs to be completed by an expert to ensure that it is done fully and correctly. The job of a conveyancer is to ensure that the transaction is legal and that there are no hidden issues, so this needs to be done by someone who is suitably qualified. If you choose to do this for yourself, you will have no recourse against the seller, so it can be a risky business and will not be accepted by a mortgage company.
If the transaction is a straightforward one, the conveyancing should take between eight and twelve weeks, however, in more complicated cases this may be longer. The timescale of the searches themselves are dependent on how long each local authority and organisation takes to respond
Purchase of a standard or new build property
Whatever type of property you purchase, it must go through the conveyancing process. This allows the conveyancing solicitors to perform the relevant searches on a property in order to spot issues with both the property and its surrounding area.
If you are purchasing a property that has existing tenants in it, make sure that you check the tenancy agreement thoroughly to find out what their rights are as well as your own.
A conveyancing solicitor will check your identity and make sure you have the funds to buy the property that you have your eye on. They will manage any searches and handle requests from the seller’s legal representative.
They will also examine the survey results and raise any concerns that they may have. Once you are all happy with the contract, they will help you to agree a completion date before moving on to exchange contracts and then send the transfer deed and funds to the relevant places.
This all makes the process of purchasing a property much easier and smoother for everyone concerned.
This entire process is the same, whether you are buying an existing property or a new build off plan.
If you have put your property up for sale and accepted an offer on it, you will need to begin the conveyancing process in for the sale to move forward effectively. This provides information on the searches for the property and what is included as part of the sale.
A conveyancing solicitor will check the identity of the buyer and ensure that they have the funds to make the purchase. They will also advise you on any legal issues which may affect the sales and provide information to the buyer’s legal representative.
They will then prepare the contract of sale and formally exchange contracts with the other party. As the sale goes through, they will handle the transfer of monies, including paying off the mortgage and estate agent before sending the title deeds to the buyer’s solicitor and updating the Land Registry.
You might decide to remortgage a property in order to extend your mortgage period, get a better deal or to release cash. This will also require a form of conveyancing and whilst this is usually provided by the lender, you can also seek an independent conveyancing solicitor to do this for you.
Mortgage companies insist that this is performed by a professional, so this is not a job that you should attempt to do for yourself, not matter how experienced you might feel that you are.
A solicitor will liaise with the mortgage broker to find out what they need before reviewing the title documents and checking the mortgage for you.
There will still be legal searches which need to be performed, and your conveyancer will be able to conduct these for you and finally confirm to the lender the certificate of title in order to complete the process. The money from the mortgage company is then sent to the solicitor who will pay off any existing mortgage and transfer the balance to you.
Sale and purchase
Many property transactions take place as part of a chain when buying and selling properties are linked and can create delays in process caused by others elsewhere in that chain.
Many delays are caused by the length of time it takes to perform the searches, which often involve the local authority. These searches may include a local authority search, drainage search, Chancel Repair Liability search, environmental and flooding search and a location specific local search which might look into things like the impact of mining in the area.
Ensuring that you start the process as quickly as possible is essential in ensuring there are fewer delays from your side.
Transfer of equity
A transfer of equity usually takes place when a property owner adds or removes someone from the title of the property. This most commonly occurs in the case of a marriage or a separation in order to reflect the property’s new ownership situation. A transfer of equity is required when at least one original title holder remains on the deeds.
Any changes to the ownership of a property will need an expert conveyancing eye. This helps to protect all parties involved to make sure that the process is correct, and that the are no hidden issues which could come back to bite either the buyer or the seller. Conveyancing lawyers help to cut though the legal jargon involved in property sales and transfers and can offer invaluable advice to give you the peace of mind you need.
Lovedays Solicitors, based in Matlock are specialists in personal and business legal services. Their team of solicitors can provide support and guidance through a range of property matters including conveyancing, buying, and selling a house as well as advice for first time buyers.