There are a number of legal formalities that need be undertaken when purchasing
or selling a property, this is traditionally referred to as conveyancing. A
qualified individual typically a solicitor or a licensed conveyancer will deal
with the legal aspects on your behalf.
To gain a better understanding of the legal process, We will look at what is
involved at the different stages of the transaction from the view-point of the
buyer and seller.
What happens when...
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The sale is agreed
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The exchange of contracts takes place.
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The sale/purchase is complete
The sale is agreed
|
Seller |
Buyer |
Your solicitor will:
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Obtain the title deeds of the property and will ask you to complete a detailed
questionnaire about the property - including details of all items that will be
included as part of the sale.
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Prepare and send out a package of legal information including a draft contract
of sale for the buyer's solicitor to review.
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Request a settlement figure to redeem your mortgage.
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Liaise with all relevant parties and negotiate a date for moving - referred to
as the 'completion' date.
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Your solicitor will:
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Arrange a local authority search and will ask you for a sum on account of such
expenses.
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Review the draft sale of contract and raise any queries with the seller's
solicitors. Upon receipt of satisfactory answers to any questions raised your
solicitor will then ask you to sign the contract.
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Request you to transfer the deposit (usually 10% to 15% of the purchase price)
to their client accounts.
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Receive the mortgage offer and deal with all the conditions on your behalf.
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Receive the search results and deal with any problems revealed.
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The exchange of contracts takes place
|
Seller |
Buyer |
Your solicitor will:
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Receive the deposit from the buyer's solicitor.
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Organise the final accounts, collect any outstanding balance of funds and draw
up a final settlement for you to approve.
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Approve the deed of transfer and will ask you to sign it.
|
Your solicitor will:
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Transfer the deposit to the seller's solicitors.
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Organise final searches to check for any outstanding debts and bankruptcy.
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Collect any outstanding balance of funds and prepare a final completion
statement for you to approve.
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Prepare the deed of transfer and mortgage deeds and will ask you to sign them.
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It is important to remember that once the contracts have been exchanged the
deal is 'done' and both parties are committed. Withdrawals at this stage will
result in financial penalties.
The sale/purchase is complete
|
Seller |
Buyer |
Your solicitor will:
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Arrange for your mortgage to be redeemed in full and will notify HM Land
Registry.
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Hand over the deeds to the buyer's solicitor and will send the balance of money
to you.
|
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Arrange for payment of any stamp duty to the Inland Revenue.
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Prepare and send off an application to HM Land Registry to register your
ownership.
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If the property is mortgaged? Send the deeds to your lender.
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