Conveyancing - Essential Facts

So what exactly is Conveyancing?

Conveyancing is the process of preparing legal documentation for the transfer of property ownership from the seller to the buyer. In most cases, a Conveyancing Solicitor or other licensed conveyancer is hired to take care of this responsibility. It’s possible to find a competitively priced conveyancing service that incorporates all aspects of conveyancing including searches, enquiries and legal paperwork.

The Practice of Conveyancing Explained

The practice of conveyancing in law can refer to two forms of transaction:

1. The transfer of title of property between two parties, or
2. The process in which a mortgage or lien is granted.

Other uses of the term can be used to describe the bulk movement of substances such as gas, water, sewerage or electricity, but we won’t be dealing with this here!

Conveyancing in relation to property sales involves three recognised stages:

1. Before contract
2. Before completion
3. After completion

In legal terms there are two important stages of the conveyancing process. The first landmark is the exchange of contracts which involves the passing of the equitable title, the second landmark is known as completion when the legal title is passed.

Conveyancing Top Tip!

If you’re a potential property buyer be sure to obtain the relevant “title” to the land before making an offer. This means that the seller can prove they are the owner and have the authority to sell the property without cause for any restrictions on the mortgage.

In most cases a system of land registration should ensure that buyers are offered good title through the use of public records. This means that the buyer is aware of any restrictions on the land as well as relevant information on land rights before purchasing. All this information is available for a small fee direct from the Land Registry website.

The Conveyancing Process - What’s Involved?

The actual conveyancing process is as follows:

1. The buyer negotiates a price with the seller and thereafter organises a survey of the property.
2. The solicitor or conveyancer begins pre-contract enquiries and searches.
3. A draft contract is prepared by the seller’s solicitor or conveyancer which is to be approved by the purchaser’s solicitor or conveyancer.
4. Relevant property advice and information is prepared by the seller’s solicitor and given to the buyer’s solicitor.This information should adhere to the rules of the Law Society’s National Protocol for domestic conveyancing.

In general, conveyancing takes between 10 to 12 weeks. However, timescales may vary depending on financial, legal, social and personal constrictions. It is actually perfectly possible to exchange and complete on the same day (there is no need to have a period in between if you don’t need it) and the whole process can be done in as little as 3 to 4 weeks. A lot depends on your individual conveyancer or solicitor and how quickly they process everything - we recommend that you agree a timescale with them at the outset to make sure deadlines are met.

Either party can legally pull out of the transaction at any point and for any reason before the exchange of contracts.

Conveyancing in England and Wales

The process of conveyancing in England and Wales is not complete or legally binding until contracts have been exchanged. This means that both parties have the freedom to change their mind at any point before the exchange, but can also mean time and money is wasted if the deal falls through. The introduction of Home Information Packs in 2007 can be seen to have accelerated the process by outlining relevant information to potential buyers from the early stages.

Conveyancing in Scotland

Under Scottish law conveyancing contracts are generally concluded at a much earlier stage than under the English legal system. Indeed, once the initial offer has been accepted, the transaction is legally binding. Due to this system, buyers often have a survey made before a bid is offered to the seller’s solicitor or conveyancer.

The process of conveyancing in Scotland:

1. Offers will be taken by the seller and a closing date will be set for interested parties.
2. A contract is agreed upon in the form of letters between the buyer and seller’s solicitors. These legal letters are known as “missives”.
3. Once the terms of the missives have been agreed upon the sale is now legally binding.
4. The contract should show that the seller has good title to the property as well as revealing clear searches from the local authority and the property registers.

Conveyancing in Scotland: Pros and Cons

Pros

One of the main advantages of the conveyancing process under Scottish Law is that parties cannot drop out at the last minute. This helps both parties to avoid unwanted financial and emotional stress.

Cons

One of the main disadvantages is that the buyer will have to pay for surveys whether the property sale is successful or not. One way of tackling this problem is for sellers to arrange one survey for all potential bidders. In addition the “Home Report” which comprises of a Single Survey, an Energy Report and a Property Questionnaire, allows buyers to understand the property more fully before making a bid.

Conveyancing Top Tip!

When searching for a conveyancing service, be aware of false price claims and hidden charges from unscrupulous conveyancing companies. It’s possible to find conveyancing quotes for as little as 99, but beware! These quotes often miss out other essential legal documentation that’s required by law. After you’ve paid extra for all the hidden charges you’ll find it’s cost a lot more than you bargained for! Do your research and Compare as many conveyancing solicitors as possible through a reputable agent.

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