What is Conveyancing? Everything you need to know before you buy a house

What is conveyancing
The conveyancing process for buying from start to finish
The conveyancing process for selling from start to finish
How to find a conveyancer
How much does a conveyancer cost?
Other sources

What is conveyancing?

Conveyancing is the name given to the process of legally securing a property. It applies to both selling and buying, and is effectively a way of guaranteeing a financial deal is going to be honoured.

This is obviously a very important aspect of buying and selling property, which is why it’s common for people to turn to solicitors who specialise in conveyancing laws.

Generally, there are two key stages of the process:

The initial exchange of contracts. This is where the terms of the deal are discussed and locked in. It’s at this point when mortgage offers will be confirmed and deals agreed.
The completion of the contract. At this stage, the legal aspects of the agreement will become sealed in stone. While there’s still a lot to do for a solicitor at this point, the process is out of your hands.

But what do these two stages actually involve? And how do you find a conveyancer who’s right for you? Let’s take a closer look at the entire process, from the point of view of both a buyer and a seller.

The conveyancing process for buying from start to finish

Agreed a price for a house? There’s a lot that goes into this, but one thing you want is the peace of mind to know once you’ve placed an offer, you’re quickly tied into a property. No-one wants their deal to fall through. Let’s explore how conveyancing will ensure your agreement is protected.

1. Instructing the conveyancer

The price has been agreed on, so it’s time for both sets of conveyancing solicitors to get in touch. If you’re the one purchasing, your solicitor will receive a contract pack from the seller’s team.

Within this pack you’ll find:

The property information form. This will highlight if there’s anything wrong with the house, or if there are any disputes over boundaries. The form lets a buyer know if there’s anything at all which is out of the ordinary.
The fittings and contents form. This informs you how fitted out the home is. If there are any furnishings or items being left behind which come as part of the property, you’ll find out here.

While this will be handled for you, it’s still important to carefully read through these forms yourself. You’ll want to have a firsthand understanding of what condition your house is in and any actions which might need to be taken.

To ensure everything has been included in the forms, make sure to check them alongside the property. This should both confirm anything which was mentioned and serve as a means of highlighting something that was missed.

2. Legal search requirements

There are three core searches which almost all conveyancers will do. These are:

Local authority. This gives you a detailed description of both the property and the surrounding areas. There are two parts of this kind of search, a LLC1 and CON29.

1) A LLC1 focuses on whether your property is:

A listed building
A conservation area
Situated in a tree preservation area
In need of improvements or renovations
In a smoking controlled area

2) A CON29 will look at:

Proposals for new roads or traffic schemes
Nearby land that is contaminated
Planning decisions in the local area which could affect your property
Building regulations
If the house is in a Radon-affected area

Ultimately, this search looks to protect you from legal legislation both in the present and heading forwards.

Water and property. This lets you find out if the sewers, drains and piping are maintained by your water company, and whether there’s been any problems in the past. It also lets you know if any sewers are running under your property.
Environmental. This works out if the previous use of the land you’ve purchased has caused it to be dangerous to occupy in any way. This includes, but is not limited to, the likes of:
Landslides
Subsidence
Contaminated land
A higher risk of flooding

3. Planning a completion date

Once all necessary searches have been carried out, it’s time to agree on a completion date. Once the first two stages have been assessed and accepted by a conveyancer, they’ll discuss with the seller’s own representative to hammer out an official date.

It’s on this date your deposit will be sent over. With this level of commitment, it’s time to begin the part of the process which sees the property changing hands.

4. Exchanging

You’ll be given a final completion statement to sign, as well as a transfer and mortgage deed which you’ll also have to add your signature to. It’s at this time your conveyancer will provide you with the fee for their services.

Their final act will be to carry out a last check to make sure no changes have been made to the Land Register since the process started. Once this is done, your and the seller’s solicitor will exchange contracts. From this point, you are legally contracted to buy the house.

5. Completion

On this day, you officially become the owner of the house in question. You’ll pay the final price for the property through your mortgage lender (minus the deposit you already put down) and receive a transfer deed which confirms you as the new owner.

Any documentation which you might need further down the line to confirm you’re the owner will become available to you at this point. This includes the likes of title deeds, transfer deeds and proof of outstanding mortgage payments.

You’ll also need to notify HM Land Registry to let them know you’re the new owner. This should be completed within 30 days of the home changing hands.

The conveyancing process for selling from start to finish

We’ve looked at what the buying process requires, but what about if you’re trying to sell your home? Naturally, this involves a lot of different things when compared to purchasing. Follow this process to find out what this requires.

1. Agreement of sale

Once you’ve decided you want to sell, you’ll need to contact a conveyancer. They’ll request your title deeds and ask you to fill out a questionnaire. You’ll also be required to complete a number of forms.

These include:

The property information form
The fixtures and fittings form
A seller’s leasehold information form (if the property is a leasehold)

You’ll want to get a picture of when the sale is going to be completed fairly early on, so this is also the time to try and get a rough estimate from the buyer’s solicitor. If you have any outstanding payments to be made on your mortgage, this will also be the time your solicitor is informed of how much that should be.

2. Exchange of sale

Once the contracts have been exchanged by both party’s solicitors, you’ll receive the buyer’s deposit price. This will normally be 10% of the total property value.

A buyer is legally tied in to buying the property at this stage, which means even if they back out you won’t be able to accept any other offers which had been made during the conveyancing process.

3. Completion of sale

This is the part of the process which sees you paying your conveyancer, as they settle all of your final accounts. They’ll give you a confirmation that all payments have been made, and will make payments to an estate agent if one was involved in the process .

They’ll also organise the completion of all outstanding payments to your current mortgage lender. Once everything has been settled, and all fees are paid, you’ll receive the money via bank transfer within a few days.

How to find a conveyancer

Just as with any legal matter, you’ll want to make sure you’re dealing with someone you know you can rely on. That’s why the finding of a conveyancer is one of the most important parts of selling or buying a house.

There are a number of ways you can identify someone who’s perfect for you.

Mortgage brokers or lenders. If you’re already working with these f financial experts, they may have a trusted conveyancer they work alongside. There’s even a chance all three are covered by the same solicitors.
Online reviews. These are always a good way to monitor how reliable a solicitor is. If you notice a regular theme of poor case management, it might be worth looking elsewhere.
Recommendations. If your friends and family have used a particular service in the past, it would be clever to see what they thought of it. If they have only positive things to say, the conveyancer in question might be worth trying.

Once you have a solicitor service in mind, it’s worth considering some other important factors which will affect your decision.

Payment method. There are a variety of ways a conveyancer will accept payment. Try picking one dependent on which method suits you best. Whether you want to pay via a fixed fee, an hourly rate or as a percentage of the mortgage price, make sure your chosen solicitor can accommodate.
Communication methods. Make sure the conveyancer is easily contactable. That means asking about back-up plans if they’re off sick or have an upcoming holiday planned. Also be sure to ask about whether they have a system in place which allows you to track your progress.
Their credentials. It should go without saying, but it’s important to make sure you’re dealing with reputable, qualified professionals. Check to see if they have all the qualifications required to be offering this legal advice.

How much does a conveyancer cost? (2019)

There are several costs which you need to account for when working with a conveyancer. These will vary from person to person, but average figures are:

Legal fees. These are traditionally the most expensive cost you’ll incur. They serve as the core charge for the service given before disbursements (listed below) are included. They range between £850-£1500.
Anti-laundering checks. These verify your identity and are often done online. You’ll often be charged between £6-£20. This might cost more if you’re a foreign national.
Title deeds. You’ll need a copy of the title deeds, which will be held by the land registry. This usually costs around £6.
Searches. We’ve already discussed what these involve, but the cost could be anywhere between £250-£450.
Transferring ownership. You’ll have to pay a fee to transfer the name on your contract. This can sometimes reach as high as £200-£300.
Telegraphic or bank transfer fee. Funds need to reach an account on a specific day. In order to guarantee this happens, you may have to use a bank transfer (or “telegraphic”) fee. This will usually be around £20-£30.
Stamp duty land tax. If your house costs more than £125,000, you’ll have to pay stamp duty. This will vary depending on the value of the property you’re trying to buy.
Help to buy supplement. You can be charged an additional fee if you use a help to buy scheme as part of your fund-building efforts. This can reach as high as a charge of £200-£300 for the cost of the leg work involved.

Make sure you’ve taken these costs into account prior to purchasing. Having these funds set aside will be crucial.