Conveyancing is the process of transferring real estate from one person to another. It is a generally used term in real estate transactions when purchasers and vendors transfer possession of real estate,which could be land,building,or a home.
The process needs an instrument of conveyance which is usually a legal document such as a written agreement,lease,title,or a deed. The document carries information which includes the agreed-upon purchase price,the date of actual transfer,as well as the obligations and responsibilities of both parties.
Conveyancing is normally done in two phases:
- The exchange of written agreements; at which phase all the terms of the deal are decided and,
- The fulfillment of the deal where the legal title passes on to the buyer
Who Usually does Conveyancing?
Conveyancing is normally done by a legal representative known as a conveyancer. The conveyancer could be a lawyer,real estate lawyer or a licensed conveyancer. All solicitors are qualified to do conveyancing; that being said,not all of them have the involved experience.Most real estate transactions involve that a property loan of some sort be taken out. As a result,home mortgage lenders have a list of conveyancers whose services they would prefer.If you choose not to use a conveyancer from their certified list,you may be involved to pay a fee to go somewhere else. If you do need help then get in touch with Chris Stevenson Conveyancing
What Exactly do Solicitors and Conveyancers Do?
When a lawyer or conveyancer gets their instructions from you,the following are the services you should expect from them:
They will conduct searches within organizations such as local authorities and utility companies. These searches are important because they ensure that there are no plans afoot – such as building plans – on the land you intend to buy. They also reveal if there are any potential issues associated with the real estate,such as:
- Whether sewers are running close to the real estate
- Whether the area is categorised as a flood risk
- Whether unresolved financial liabilities are hanging over it from past inhabitants
They will inform you of likely costs you can incur,such as stamp duty. They will also check out the written agreements drawn up by the solicitor or conveyancer of the other party.The written agreement will include important details like the price of purchase or sale. They will also liaise with your home mortgage lender to ensure that they have all the information they need to proceed with your home mortgage.
Your solicitor such as Chris Stevenson or conveyancer will register your possession with the Land Registry as the new owner of the real estate if you are the buyer.
What Processes does Conveyancing Follow?
The process of conveyancing occurs from two ends – the buyer’s end and the vendor’s end. If you are the vendor,the process is as follows:
- You instruct your conveyancer.
- Your conveyancer confirms your instructions through a letter which states the terms of business and the cost of fixed fees.
- Your conveyancer carries out a proof of identity check and gives you some forms to fill which will provide information about the real estate you are selling.
- Once you fill the forms,your conveyancer will need the title deeds or official copies of the title register and any other records the Land Registry needs. You will also need to release details of any existing home mortgage and the outstanding amount.
- Your conveyancer then prepares the draft written agreement and any supporting written agreement documentation to send to your buyer’s conveyancer. He or she also answers any pre-contract enquiries raised by your buyer.
- Once your buyer’s conveyancer expresses satisfaction with the results of their searches and the answers to their pre-contract enquiries,they confirm the receipt of a property loan offer if any.
- You and your buyer agree on a completion date,and you both commit to the transaction legally. Your conveyancer will help you get a settlement figure to repay the outstanding amount on the home mortgage if any. Your buyer’s conveyancer then drafts a transfer deed and sends to your conveyancer.
Your conveyancer then checks the transfer deed,ensures that all is in order and sends it to you to sign,thus signaling the fulfillment of the transaction.As a buyer,the conveyancing process is the same as your conveyancer looks out for your interests in the process outlined above.
Can I do my Own Conveyancing?
The short answer is yes; you can do your conveyancing yourself. You shouldn’t do so,especially if you are buying real estate. If you are buying with a property loan,or selling to somebody who is purchasing with a property loan then you will not be permitted to handle the transaction yourself. Lenders have this policy to protect their own interests as professional conveyancers have professional indemnity insurance.
Furthermore,conveyancing is a complicated and time-consuming process. It is also a risky business as it could turn disastrous in the blink of an eye. It is a detail-oriented process and one which could hurt you if you miss a critical detail that only becomes apparent after you complete the transaction.Have you ever heard of ‘caveat emptor’? It is a common law principle which means ‘let the buyer beware’,and it applies to real estate in the United Kingdom.
Thus,if you do the conveyancing yourself and a controversy pops up,you have no recourse against the vendor. The sad truth is that in some cases,vendors do not have the legal right to sell the properties they are marketing. With a licensed and experienced conveyancer,you can avoid this pitfallby calling Chris Stevenson Conveyancing