Conveyancing explained
Conveyancing is the legal term of buying, selling and re-mortgaging a property. The conveyancing process is carried out by a solicitor or conveyancer.
Buying or selling a property can be a very overwhelming experience. That’s why you need the help of an experienced solicitor or property lawyer. They will guide you through the process known as Conveyancing – but what exactly is conveyancing?
The term conveyancing is the name for legally transferring a property from one owner to another. The conveyancing process involves a solicitor or licensed conveyancer. These people act on behalf of the purchaser to ensure their client(s) receives the title deeds to the property and the land it sits on. Conveyancing encapsulates the entirety of the legal and administrative work required to ensure a house purchase is valid under law.
During the conveyancing process, you will hear your mortgage lender or conveyancer referring to “exchange of contracts”. The exchange of signed contracts between the buyer and the seller – carried out via each party’s solicitor– is what legally commits both parties to the sale of the property.
A property purchase cannot be legally binding until contracts are exchanged between the buyer and the seller – this allows freedom to both parties prior to the exchange of contracts. A deposit is required at the exchange of contracts stage.
Prior to exchanging contracts either party can simply cancel the transaction, with no obligations to the other party.
Upon the exchange of contracts both the buyer and the seller are both legally committed to the purchase and the agreed terms of the sale. If you (the buyer) decide to pull out of the agreement at this stage, you may automatically lose the deposit you paid upon exchange.
You can deal with your own conveyancing. However, it is a detailed and very complex legal process. We always recommend that you always use a qualified and experienced conveyancer.
Your conveyancer will:
- Liaise with the other sides solicitor to receive a contract pack
- Obtain a copy of your mortgage offer
- Carry out the necessary searches in relation to the property you are buying
- Analyse the results of the local authority searches
- Arrange potential completion dates with both parties
- Swap signed contracts with the seller’s own solicitor
- Transfer the deposit to the seller’s solicitor
- Prepare the completion statement and transfer deeds for you to complete
- Transfer the signed transfer deeds to the seller’s conveyancer
- Request payment of the mortgage advance from your lender
- Transfer the balance of the purchase price (less the deposit already paid) to the seller’s conveyancer
- Submit a tax return and pay the required Stamp Duty Land Tax to HM Revenue & Customs
- Forward documentation regarding the transfer of ownership to the Land Registry
- Forward the title deeds to your mortgage lender
While your conveyancer will do the majority of the legwork, you will also have responsibilities during the conveyancing process. Read our conveyancing checklist for buyers for more detailed guidance.