Conveyancing is the process of transferring residential or commercial property from one individual to another. It is a frequently used term in real estate deals when buyers and homeowners transfer ownership of real estate,which could be land,property,or a home.
The process requires an instrument of conveyance which is usually a legal document such as an agreement,lease,title,or a deed. The document carries information which includes the agreed-upon purchase price,the date of actual transfer,as well as the obligations and responsibilities of both parties.
Conveyancing is usually done in two periods:
- The exchange of obligations; at which stage all the terms of the deal are decided and,
- The fulfillment of the deal where the legal title passes on to the purchaser
Who Generally does Conveyancing?
Conveyancing is usually done by a legal representative known as a conveyancer. The conveyancer could be a solicitor,residential or commercial property lawyer or a licensed conveyancer. All lawyers are qualified to do conveyancing; but,not all of them have the required experience.Most real estate deals involve that a home mortgage of some sort be taken out. As a result,home mortgage lenders have a list of conveyancers whose services they would prefer.If you choose not to use a conveyancer from their approved 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
What Exactly do Solicitors and Conveyancers Do?
When a solicitor or conveyancer gets their instructions 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 vital 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 or commercial property,such as:
- Whether sewers are running close to the residential or commercial property
- Whether the area is categorised as a flood risk
- Whether unresolved financial liabilities are hanging over it from past inhabitants
Then,they will advise you of likely costs you can incur,such as stamp duty. They will also check out the obligations drawn up by the lawyer or conveyancer of the other party.The agreement will include vital details like the price of purchase or sale. They will also liaise with your home mortgage lender to ensure that they have all the information they need to proceed with your home mortgage.
Your lawyer such as Chris Stevenson or conveyancer will register your ownership with the Land Registry as the new owner of the residential or commercial property if you are the purchaser.
What Process does Conveyancing Follow?
The process of conveyancing occurs from two ends – the purchaser’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 instructions 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 or commercial 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 documents the Land Registry requires. You will also need to release details of any existing home mortgage and the outstanding amount.
- Your conveyancer then prepares the draft agreement and any supporting agreement documentation to send to your purchaser’s conveyancer. He or she also answers any pre-contract enquiries raised by your purchaser.
- Once your purchaser’s conveyancer expresses satisfaction with the results of their searches and the answers to their pre-contract enquiries,they confirm the receipt of a home mortgage offer if any.
- You and your purchaser agree on a completion date,and you both commit to the transaction legally. Your conveyancer will help you get a settlement number to repay the outstanding amount on the home mortgage if any. Your purchaser’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 fulfillment of the transaction.As a customer,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 home mortgage,or selling to somebody who is purchasing with a home mortgage then you will not be permitted to handle the transaction 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 significant detail that only becomes apparent after you complete the transaction.Have you ever heard of ‘caveat emptor’? It is a common law principle which means ‘let the purchaser beware’,and it applies to residential or commercial 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 residential or commercial properties they are marketing. With a licensed and experienced conveyancer,you can avoid this pitfallby calling Chris Stevenson