As a first time buyer you will no doubt have many questions regarding the conveyancing process. Coralie Phelan, Partner at Prince Evans Solicitors LLP, looks at the common questions asked by first time buyers during the process.
What is conveyancing and why do I need a conveyancer?
Conveyancing is the legal process of transferring land from one party to another. You will need a conveyancer to act on your behalf and your lender’s behalf to check that you will acquire a good and marketable title to the property to enable you to sell and mortgage the property without difficulty in the future.
How much should I budget for conveyancing fees?
Every firm will charge differently and it is important to check any small print and to understand fully what the firm is charging. You should budget for between approximately £1,000 to £1,800 plus disbursements (payments to third parties such as the Land Registry) and Stamp Duty Land Tax.
Who will be my point of contact throughout the process?
It is worth considering whether you value a more personal service, where you deal with one conveyancer throughout, or whether you prefer a firm that has a more modern approach, with different conveyancers dedicated to dealing with each stage of the transaction.
Is there anything I can do to make sure the process runs smoothly?
Keep in regular contact with your mortgage adviser and conveyancer and the sales office or estate agent to ensure you are fully abreast of all developments.
How often will I receive updates?
Most firms will update you via email or phone depending on your preferences. At Prince Evans we are one of a few firms who use an app to update our clients. It is worth enquiring regarding the frequency and method of updates at the quotation stage so you can ensure your appointed firm meets your expectations in this respect.
When do I need to pay the conveyancing fees?
Most firms will ask you to pay between £200 and £300 upfront to cover the cost of searches. The deposit (usually 10% of the purchase price) will be requested on exchange and the balance due on completion. The balance of legal fees is usually due for payment no later than one working day prior to completion. You will usually receive an invoice between exchange and completion setting out the balance due from you, otherwise known as the completion statement.
How long does the conveyancing process take?
If you are purchasing a new build, the developer or seller will usually expect exchange of contracts (the point of legal commitment) to occur within 28 to 42 days. If you are purchasing a resale property, then this could take anywhere from three to six months or sometimes even more depending on the position of all parties in the chain. It is impossible to be precise with conveyancing timeframes as there are so many different third party elements that could affect the timeframe.
Is the conveyancer familiar with a case like this – for example, affordable housing conveyancing?
It’s crucial to ask this question and ensure your conveyancer is an expert in the area in which you are purchasing. For example, you should consider instructing affordable homeownership experts if you are purchasing a shared ownership property.
Is the conveyancer suitably qualified and experienced?
A conveyancer could be a qualified solicitor, Licensed Conveyancer, or a paralegal. You should check you are satisfied that your conveyancer has suitable experience before instructing them.
Do I need to instruct a conveyancer in the local area?
It isn’t necessary to instruct a solicitor in the local area, as all conveyancers in the UK can act on property purchases in England and Wales where the conveyancing process is the same. If you are instructing a solicitor who isn’t near to where you live or work, do check with them it won’t be necessary to visit their offices to sign papers.
I’m currently renting – when should I hand in my notice?
It is crucial to time this right to avoid firstly handing notice in too early and making yourself homeless and secondly too late and paying rent and service charge on both properties. Generally, your conveyancer will advise you to wait until exchange of contracts when a fixed completion date can be agreed before handing notice in and then negotiating a suitable period between exchange and completion to avoid having to pay double rent and service charge.
Can a conveyancer act for both buyer and seller?
This question is sometimes asked as it appears that this would be quicker and easier, but the answer is no. A conflict of interest could arise, for example, if the buyer’s solicitor has to act for both buyer and lender or if there was a title query. Each party needs to be independently advised to ensure a conflict of interest does not arise.
What is the difference between exchange and completion?
The exchange of contracts is the point when there is a legally binding contract between the parties. Completion is the day that monies are transferred between solicitors and you can collect your keys and move in. Generally, there is about one to two weeks between exchange and completion.
What are standard searches?
Standard searches usually consist of a local search, which searches for matters in the local authority records such as planning and building regulation history, road adoption and adverse matters that might affect the property such as compulsory purchase schemes. Your conveyancer may also recommend a drainage and water search and environmental search.
Why do I need to provide proof of deposit if I have already provided this to my mortgage adviser and lender?
The Proceeds of Crime Act and Anti Money Laundering legislation and conveyancing regulations hold your conveyancer to an often higher standard and more onerous obligations in terms of anti-money laundering checks than that of your mortgage adviser or lender. So you should ensure you have your bank statements and records of how you obtained your deposit funds readily available to supply to your conveyancer.
When do I get the deeds to my property?
The legal documents or deeds are held electronically at the Land Registry and physical deeds and documents are now largely obsolete. The title information document proving the ownership of land is a public document that is available to download. Your conveyancer will send your copy of the title following registration. The Land Registry has incredible backlogs at present and as a result, it could take several months before the Land Registry confirms that your ownership has been registered. As this is largely an administrative process, this delay is nothing to be concerned about.
There is no single best or most important question to ask during the conveyancing process. It is worth ensuring you ask any questions you have to enable you to understand the process properly before legally committing and embarking on your journey into homeownership. Your conveyancer will want to help you complete your purchase without any issue and will therefore be happy to answer any questions no matter how small.
First Time Buyer is an exciting bi-monthly glossy which takes a stylish and comprehensive look at all the options available, setting them out in an entertaining and informative way, and helping potential customers navigate their way through what is often a daunting and complex process. We dispel the myths, reinforce the facts and arm the reader with the tools necessary to make their homeownership dreams a reality.
