Buying or selling a home is a complex business, both legally and administratively. The exact order of events varies slightly but there are three main stages to the process. The following is a basic guide. For a more detailed explanation, please speak to a solicitor.
 
Stage One – Before the exchange of contracts

• Once your offer has been accepted, you exchange solicitor details with the seller. Your solicitor will contact the seller’s solicitor and request the draft contract and supporting papers including a copy of the ‘title’ to the property you are purchasing.  The ‘title’ is simply the technical name for the deeds
• Your solicitor applies to the local authority for local searches and checks the title, contract and supporting
• papers, putting any questions that are necessary to the seller’s solicitor. Make sure that your solicitor knows of any agreements you have with the seller for example if you have agreed to purchase.any fixtures and fittings
• The majority of people require the assistance of a mortgage to assist them with their purchase.  If you need a mortgage, a satisfactory offer will need to be issued by your lender before you exchange contracts.  When sending the offer of mortgage to you, your lender will also issue ‘mortgage instructions’ to your solicitor which contain a copy of your offer together with the administrative papers required by your solicitor to draw down the mortgage funds and to enable the loan to be secured against your property.. At this stage you should also have received the results of your survey.. If you are not satisfied with the results, then you need to address any problems directly with the lender at this stage.
• Once both parties are satisfied and the contract is agreed your Solicitor will ask you to call in to go through the paperwork and sign the contract or alternatively will report to you with the paperwork and the contract for signature. Once you are happy with the paperwork and your solicitor has the signed contract together with your deposit a completion date (being the moving date) can be agreed. It normally takes about two weeks between exchange and completion. If you are part of a chain, then the completion date will need to be agreed with two or more parties.
  

Stage Two - The exchange of contracts

• Before exchanging contracts, ensure that all is in order, including:
  
  • You have received and are satisfied with the survey report.
    
  • You have received your formal mortgage offer, and are happy with it.
    
  • The deposit sum has been agreed and you have the money available.
    
  • You have arranged property insurance (and if applicable life insurance) and they are to begin on exchange.
    
  • The completion date has been agreed with all parties.
    
  • The terms of the contract have been checked and finalised by all involved.
    
• Contracts are exchanged, at which time you must hand over your deposit (normally 10% of the purchase price). This is non refundable should you now wish to withdraw from the sale. You could also be sued for breach of contract.
• Your solicitor will now draw up a transfer document and send it to the seller’s solicitor.
• If they have not already done so, your solicitor will arrange finalisation and signing of your mortgage documents and ensure that the funds are available on completion of the sale.
• You should now also make the practical arrangements for moving. Your Solicitor will arrange to collect any final balance required from you together with fees, Stamp Duty, Land Registry etc as detailed in your initial estimate
  

Stage Three – Completion

• Your solicitor will ensure that balance of the purchase price is paid to your seller’s solicitor
• You now obtain the keys to your new property and the title deeds will be sent to your solicitor.
  
• Where relevant, your solicitor will also inform your mortgage lender that the purchase is now complete and will arrange to pay the Stamp Duty to the Inland Revenue on your behalf and register your ownership of the property at the Land Registry .
  

You are now free to enjoy your new home. Good luck!

Conveyancing Outline A PDF document outlining a simple conveyancing transaction.

 

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