Conveyancing explained

It is an integral part of the housebuying process, but what exactly does conveyancing involve? Barney McCarthy finds out more

There are various different stages in the process of buying a home, as investigated in our recent feature on Stamp Duty. One integral part of the chain is conveyancing, a simple definition of which is the transfer of ownership or property rights from one individual to another. There are a number of factors affecting the timescale of the process, such as how quickly each party’s solicitors respond to enquiries and what the results of the different searches involved show up. If you are part of a long chain for example, this can hold up proceedings.

Accessing conveyancing services is as simple as contacting a solicitor and instructing them to carry out the services you require. John Jones, senior conveyancer at Goldsmith Williams, says you can contact your local Law Society or look in the Yellow Pages for some names and contact details. “It is important to use a solicitor that has a conveyancing presence and isn’t too preoccupied with other parts of its business,” he says. “Most solicitors will have online quoting facilities so you can compare prices.”

Step-by-step

Once the sellers of a property have accepted your offer, you need to exchange solicitors’ details with them. Your solicitor will then contact the seller’s solicitor and receive the draft contract, which is then negotiated and sent to you to check. You will also receive a ‘fixtures, fittings and content’ form, telling you what is included in the price of the property and what will be removed by the seller. Your solicitor will apply to the local council and check the title and contract – this is vital because it confirms that the seller really owns and has the right to sell the property.

Tony Swift, conveyancing director at Barnetts Solicitors, says: “Topical searches at the moment include whether or not the property is situated on a flood plain, which may affect the insurance, or on a redeveloped brownfield site where there may be problems with the ground.” Local authority searches will ascertain whether any developments will be taking place in the immediate area and enquiries to the seller’s solicitor will establish items such as the property’s utilities are in order and if there are any restrictive covenants and rights of way detailed in the lease. The former can include things such as whether pets are allowed on the property and the latter can include things such as access roads, rights to light and prospect (the view) and ventilation.

Before proceeding to the second stage of conveyancing, you will need to receive a formal mortgage offer and your solicitor will send you the mortgage deed to sign. Contracts are then exchanged and you hand over a deposit which is non-refundable if you pull out of the sale. After final searches are made, you receive the keys to your house and the seller is obliged to move out.

Moving on up

On the day of completion, you have to pay the balance of the price of the house, usually through your solicitor or conveyancer. You receive the transfer documents and the title deeds. You then have to pay extra costs including Stamp Duty. Swift says the whole process has become a lot quicker. “When I started working in conveyancing 20 years ago, it used to take about four weeks between exchange and completion,” he says. “Now it is more like 10 days as people are anxious to get the whole thing done and dusted. This doesn’t allow a lot of time to arrange things such as removal companies though.”

Swift says the cost of conveyancing can vary depending on the level of service the customer requires and can be anything from £250 to in excess of £1,000. “It is important to make sure you get a transparent quote and that there aren’t any hidden extras,” he warns. “It is also important to make sure you do your budgeting too. With the disappearance of 100% LTV and above mortgages you can’t rely on mortgage funds anymore.” 

Jones adds: “Most solicitors have a sliding scale of charges based on the purchase price. For example, we have a charge of £295 for properties up to £200,000, then further charges of £395 and £495 [for properties that cost more]. It is important to remember that there are dispersements on top of that charge, such as Stamp Duty and Land Registry fees. Price isn’t the only factor though – you need to ensure you are using a good quality conveyancer who will get the job done.” 

Jones offers a few final tips to smooth the path of the transaction too. “Be upfront with your solicitor about what you intend to do with the property,” he says. “If you plan to build an extension, tell them and they will know the likelihood of getting planning permission. Check whether it is freehold or leasehold too as this can have a bearing on whether you want to buy it or not. Lastly, ensure you maintain good communications with all parties including the estate agents and the seller to help things along.”

The future of conveyancing

The Land Registry, an online database of property information in England and Wales, has long mooted plans to re-engineer the conveyancing process, mainly by developing an electronic conveyancing service called Chain Matrix that will allow up-to-date and accurate information on the progress of all linked transactions. However, these plans seem to have been put on the back burner for the time being after delays and negative feedback from the industry, mainly concerning client confidentiality.

For the time being then, you will have to rely on the tried and trusted method of putting pen to paper with a solicitor. It may seem like a drawn out procedure, but it will be worth it when you have the deeds to your dream property. 
 

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