Bournemouth Solicitors

CONVEYANCING GUIDE FROM BOURNEMOUTH SOLICITORS

What is conveyancing?

Conveyancing is the process of transferring property rights from one person to another.  In most circumstances this will involve transfer of ownership and any other rights and obligations associated with the land.  It can be thought of as a means of ‘conveying’ from one person to another.

What is involved in conveyancing?

There are four stages: pre-exchange, exchange, completion and post-completion.

What happens at the pre-exchange stage?

• An offer for the property is accepted and both seller and buyer will instruct their solicitors.
• The purchaser sends a copy of the Home Information Pack (if they already have one to their solicitor).
• Both parties’ solicitors will contact each other to confirm that both parties wish to act on the transaction.
• The seller’s solicitor sends a draft contract to the buyer’s solicitor along with the seller’s property information and fixtures & fittings forms.
• Both parties negotiate or agree on the contract and sign relevant documentation.
• The seller will usually request a 10% of the purchase price deposit fee to ensure the buyer goes through with the transaction.

What happens at the exchange stage?

• A completion date is agreed on, that is the date the transaction is completed the buyer is entitled to take possession of the property.
• The buyer requests a mortgage advance to be handed over to the seller by the completion date.
• Contracts are exchanged between solicitors, meaning that if either pulls out of the transaction after this, there are potential legal consequences (breach of contract).

What happens at the completion stage?

• The completion monies are handed to the seller’s solicitor.
• The seller’s solicitor authorizes the handing over of the keys to the purchaser.
• The purchaser takes possession of the property.

What are searches?

Searches compromise the bulk of conveyancing work and are undertaken to find out information about the property that ordinarily could not be gathered merely through a physical inspection.  The type of searches you carry out depends on the location and nature of the property and whether a mortgage lender is involved in the conveyancing process.  Mortgage lenders often stipulate the type of searches they want done prior to lending any money to purchase the property.

What types of searches are there?

Local Authority – reveals further information about any planning permissions connected to the property and developments in the local area.

Drainage and Sewage – reveals further information about drainage and sewage systems connected to the property.

Environmental – reveals further information about local environmental hazards and issues.  Radon gas hazards (a common radioactive gas that leaks from certain rocks, such as granite) are often revealed by such environmental searches, allowing the purchaser to take preventative measures.

Mining – reveals further information about risks of subsidence in mining/former mining areas.

What searches should be carried out?

The decision is up to you, and if applicable, your mortgage lender.  However, as an absolute minimum any conveyancing transaction should be completed after local authority as well as drainage and sewage searches have been carried out.