Legal Basics - Property

Buying and Selling a Property - Conveyancing

Just what do solicitors do?

In the UK we are now a property owning nation, and, apparently, the average couple will now move five times during their lifetimes. It is the most expensive transaction that most of us ever carry out with the average house price now over £170,000. Solicitors costs vary, but are usually between £300 - £800 for an average house purchase. If the property is leasehold, unregistered (ie not registered with the Land Registry) or there are other complications then the charges are likely to be higher. With some research and some effort it is possible to do your own conveyancing (the legal term for transferring property from one person to another), but, for a relatively small fee, using a solicitor gives you peace of mind and effectively an "insurance policy" should things not turn out the way they should. All solicitors are obliged by the Law Society to have insurance to cover them if they make a mistake." 

So just what does the solicitor do for your money? Here are the basic steps.

Step 1 - Your solicitor will receive confirmation of your accepted offer on the property and a copy of the estate agent's details from the seller's estate agent.
Step 2 - Your solicitor will contact the seller's solicitors requesting the draft contract.
Step 3 - Your solicitor will receive the draft contract, which is checked for any unusual clauses, and a copy of the deeds that provide confirmation that the property is owned by the seller and any restrictions that apply to its ownership (eg rights of way over the property). Once the contract is approved one copy is returned to the seller for signature. One copy is kept for you to sign. Your solicitor will also usually receive details from the seller about matters such as boundaries, disputes, guarantees, alterations to the property and a list of fixtures and fittings to be included in the sale. These documents will be explained to you and you will be given copies.
Step 4 - Your solicitor will carry out a search with the relevant local authority, which asks for details on proposed road development in the area, relevant planning applications etc.
Step 5 - Once you have received the results of your property survey, and are happy with the information that the seller has provided you need to sign your part of the contract and return it to your solicitor. You are now ready to exchange contracts [unless and until this happens you are not legally bound to go through with the purchase]. At exchange the seller will usually insist that you pay them a deposit as a sign of good faith. This is usually 5-10% of the purchase price. You will need to let your solicitor have this money a few days before exchange if it is being provided by cheque. The deposit is usually held by the seller's solicitors in a special account..
Step 6 - Exchange of Contracts - Your solicitor and the seller's solicitor agree (usually on the telephone) that contracts are exchanged on your purchase and they fix the completion date [the date on which the property will become yours]. The relevant dates are inserted in the two copies of the contract and these are then physically exchanged, together with the deposit cheque to the seller's solicitor.
Step 7 - After exchange your solicitor will carry out further searches to ensure the property details provided are accurate and to ensure the seller is not bankrupt.
Step 8 - If you are obtaining a mortgage then your solicitor will also have been liaising with your mortgagee. They will prepare the Mortgage Deed [the document which gives the bank or building society a charge over your new house] for you to sign and report to the mortgagee requesting the mortgage advance in time for completion.
Step 9 - Your solicitor will calculate the sum needed from you to complete the purchase, including the balance of the purchase monies, their fees, stamp duty (if applicable - only over £60,000) and Land Registry fees. You will need to provide them with this sum before the completion date.
Step 10 - Completion - On the day of completion the balance of the purchase price is sent electronically to the seller's solicitors bank by your solicitor. Once it has been received by them the purchase has been completed and they should advise the agents to release the keys to the property to you. The deeds to the property are sent to your solicitor.
Step 11 - After completion your solicitor will pay any stamp duty payable and register the transfer with the Land Registry.

That's all there is to it!

back to basics

Send mail to mail@lawontheweb.co.uk  with questions or comments about this web site.