Whether you are buying or selling property, you will have to go through the conveyancing process for the legal transfer of a property.
As an integral part of the process of buying or selling property, conveyancing holds extreme importance.
A deep understanding of the concept of conveyancing is essential, especially if you are planning to go for a property transfer. Keep reading to learn more about it.
Here is your complete guide to conveyancing:
What is conveyancing?
It is the legal term referring to the transfer of ownership of real property from one person to another. It includes all sorts of properties – land, industrial area, residential building, or commercial property.
The process of conveyancing starts once both parties agree upon a property offer. The process ensures that everything is in place and all legal aspects are considered. Conveyancing process ends after the final contract is signed and all financial transactions are completed for the property purchase.
Who tackles conveyancing?
There are property solicitors, also called conveyancers who act on behalf of the buyer and seller to carry out the conveyancing. The solicitors are legal practitioners in Wales and England who have to register themselves with the Law Society, regulated by the Solicitors Regulation Authority (SRA).
Moreover, they are licensed and regulated by the Council for Licensed Conveyancers (CLC). Therefore, they have in-depth knowledge of the legality involved in a property transaction and can handle complex cases in this area, such as leasehold properties.
On legal notes, homeowners can carry out conveyancing. However, as discussed, the process might be complex and can be too difficult for homeowners to handle.
Also, the property buyer or mortgage lender often stresses on professional conveyancing services to protect their investment. Hence, the role of conveyancers becomes essential.
What is the role of a conveyancer?
Property experts always suggest buyers and sellers to consult conveyancers in the UK, to leverage specialist legal knowledge. This is because the role of the conveyancer is crucial from the beginning till the end of the property sale or mortgage.
Here is the list of what a conveyancer does:
- A buyer’s conveyancer organizes a set of local searches and reviews the outcomes of the searches. He notifies any issue the party needs to know, for example, if it is a leasehold property, new roads plans, or any development near the property to be purchased.
- The seller’s conveyancer mails the draft contract and a copy of the Title also called ‘Deeds’ for the property to the buyer’s conveyancer.
- He carefully carries out the paperwork and each search to raise queries with the seller’s conveyancer, which might include property boundary issues with a neighbor or the risk of flooding.
- After satisfying the queries, the buyer’s conveyancer sends the checked documents to the buyer for signing and then asks to return them.
- Conveyancers of both parties negotiate the date of exchange and arrange the date of completion when the existing home will be legally owned or sold.
- After the completion, the conveyancer pays Stamp Duty Land Tax on the buyer’s behalf.
- If it is a mortgage, he sends a copy of the title deeds to the mortgage lender, who holds them until the loan is paid off.
How long does conveyancing take?
The length of the process is commonly 8-12 weeks on average. However, the time taken completely depends upon the chain involved in the process.
For instance, if there are a number of parties in the chain who need to sell their property before any of them can go for a fresh sale, it might delay the process by months.
Hence, if the buyer and seller both are chain-free, the process will be completed in stipulated time.
Another factor that largely affects the process length is the issues highlighted in the property survey or searches. If there is no such issue, the sale might complete in as much as 4-6 weeks.
What is the conveyancing fee?
The cost of conveyancing services is based on the property value. But the average property purchase generally costs around between £850-£500, depending on where you find them. Online conveyancers often charge low.
Their amount includes charges for:
- The conveyancer’s time
- Calls and letters
- The fees for the council searches
- The registration with the Land Registry
Conveyancing is a crucial process that needs experts to handle. If done incorrectly, you can land in legal issues, such as property boundary or planning permissions. Hence, it is essential to make your choice for conveyancer wisely.
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