GUIDE TO CONVEYANCING STAGES

Once a sale is agreed and your solicitor/licensed conveyancer has been instructed, the following steps take place. The list is not exhaustive, as sometimes additional work is required; for example, if the property is leasehold or has yet to be registered at the Land Registry Office. The steps do not always follow this exact order. It is important for the purchaser to discuss the availability of their deposit with their solicitor early in the transaction.

We strongly recommend that, using this check-list, you regularly contact your solicitor in order that they can keep you fully informed of the timescale and progress of the transaction.

VENDORS SOLICITOR’S STEPS:

1. Obtain Title Deeds or office copies if title is registered.
2. Vendor returns completed Property Information form and fixtures. Fittings and content form to solicitor.
3. Copies of above, plus draft contract sent to purchasers solicitor – known as an ‘Information Pack’.
4. Answer purchaser’s solicitor’s enquiries e.g. specific questions about fixtures and fittings and obtain copies of any planning consents.
5. Agree contract and arrange for vendor to sign in readiness of exchange.
6. All parties agree completion date and contracts are exchanged.

BETWEEN EXCHANGE & COMPLETION

7. Obtain redemption figures from mortgage lender and reply to requisitions on title.
8. Approve transfer and arrange for vendor and purchaser to sign.
9. Receive agent’s fee account and seek vendor’s consent to settle out of completed funds.

UPON COMPLETION

10. Receive completion funds and only then instruct Homecare Estates to release keys to buyers. Redeem mortgage. Forward financial statement. Forward any surplus funds unless being used to fund onward purchase. Ensure all outstanding bills are paid.
11. Forward transfer documents and deeds to purchaser’s solicitor.
12. Forward evidence of discharge of mortgage to purchasers solicitors.

PURCHASHERS SOLICITOR’S STEPS:

1. Receive ‘information pack’ from vendor’s solicitors and raise any enquiries.
2. Initiate Local Authority Search plus any additional searches, if required.
3. Approve contract when all enquires are satisfactory and complete.
4. Receive mortgage offer and instructions from lender and deal with any conditions. Ensure life cover and buildings insurance arranged.
5. Request deposit, report to buyer and arrange for contract to be signed. Place buildings insurance and life cover in force.
6. All parties agree completion date and contracts are exchanged.

BETWEEN EXCHANGE AND COMPLETION

7. Raise requisitions of title and prepare draft transfer deed.
8. Report on title to mortgage lender and obtain funds for completion, including stamp duty (if applicable)
9. Prepare accounts, obtain signature to mortgage deed and undertake final land registry and land charge searches.

UPON COMPLETION

10. Forward to vendors solicitors balance of funds. Only then can they authorise release of the keys. Receive the transfer deeds from the vendor’ solicitors.
11. Stamp Transfer Deed, register purchasers ownership with Land Registry and forward Deeds to lender (where appropriate).

EXPLANATION OF TERMS:

Completion Date:
Following the transfer of funds, the date the ownership of the property passes from the vendor to the purchaser.

Contract:
The agreement that sets out the main terms that have been agreed; e.g. price, address, names etc. Two copies are drawn up and each party signs one in readiness for the exchange of contract.

Deposit:
A percentage of the purchase price, usually between 5% to 10%, which the buyer pays upon exchange of contracts.

Exchange Contracts:
The swapping of signed contracts by the solicitors with the purchaser’s deposit. After this the contract is binding and failure to complete may result in financial penalties.

Information Pack:
This comprises of a property information form, fixtures, fittings and contents form, copy of the title deeds and the draft contract.

Land Registry:
The Government department that records who owns what land and under what conditions.

Local Authority Search:
A list of questions specific to the property to reveal, for example, if there have been any planning applications on the property, if the road to the house is maintained by the council.

Mortgage Redemption Figure:
The amount required to repay the outstanding capital/interest of the mortgage.

Property Information Form/Fixtures, Fitting and Contents Form:
Standard forms about the property that the vendor answers for their solicitor, e.g. what will be left behind, details of guarantee, etc.

Requisition on Title:
An enquiry relating to completion arrangements.

Stamp Duty Tax:
A tax paid by the purchaser calculated on the purchase price of the property.

Up to £125,000 0%
Up to £250,000 0% (For first time buyers)
From £125,001 to £ 250,000 1%
From £250,001 to £ 500,000 3%
From £500,001 to £1,000,000 4%
Over £1,000,000 5% (From April 2011)

Title Deeds:
Legal documents proving ownership of land/building and the terms in which they are owned.

Transfer Document Deed:
The document of ownership that is passed from the vendor to the purchaser.