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Starting the Process
Once you have had an offer accepted you will need to instruct a solicitor to assist you with your transaction. Your solicitor will take initial instructions, provide you with an estimate of their costs and proceed to open your file providing you with their client care pack along with their terms of business.
After a solicitor has been instructed, you will need to provide the estate agents with your solicitor’s details so that the estate agents can forward a memorandum of sale to the solicitor representing you to confirm the agreed offer and the solicitors’ details on the other side of the transaction. The solicitors will then correspond to confirm they are acting for each party and start the conveyancing process.
Your solicitor is required to confirm your identity and conduct anti money laundering checks. This can be done by presenting identification at your local office. MPG offer an electronic service via mobile, for your convenience.
On a sale, you will be required to complete the Property Information Form (TA6) and Fixtures and Fittings Form (TA10). The TA6 will include questions on the structures/formations of the property such as extensions, alterations or work completed and any guarantees, planning and building regulations. The TA10 will outline items that are included or excluded in the sale. Additionally, if the property is Leasehold the seller will also need to complete the Leasehold Information Form (TA7) which will confirm details of the management company and the additional costs for service charges and ground rent.
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Mortgage
As a purchaser you should have a mortgage in principle agreed with your lender. This is an important first step as you will need an agreed mortgage to be able to proceed with the transaction. You will need to provide your solicitors’ details to your mortgage lender and your lender will send them a copy of your mortgage offer. Your solicitor will review your mortgage offer and prepare a report outlining the features and conditions of your mortgage offer.
It is extremely important that you make note of your mortgage expiry date and your solicitor will do the same. The transaction must complete before your mortgage offer expires.
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Contract Pack
The seller’s solicitor will draft the contract pack which will include the title register downloaded from the Land Registry (if the property is registered). If the property is unregistered the seller will need to provide the original title deeds to their solicitor. The pack will also include draft contracts, property forms and any supporting documentation such as guarantees or warranties.
Once the contract pack has been sent to the buyers’ solicitor, the solicitor will review the documentation and begin to raise enquiries and order searches (as detailed in the next steps.)
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Searches and Surveys
The buyer should approve the title plan for the property to ensure that the searches are carried out against the correct property. Once the title plan has been approved the buyer’s solicitor will then order your searches. The main types of searches (though this information is not exhaustive) are:
- Local Authority Search – this search will confirm any planning or building regulations, proposed works such as road or railways etc.
- Drainage and Water search- this search will confirm how your water supply/sewerage is connected and confirm if any sewers are within your boundary lines.
- Environmental Search- this search will reveal environmental factors such as if the property is in an area that may be at risk of flooding, radon gas and any ground instability or contamination.
- Mining- this search will only be necessary if you are in an area known for past mining, to confirm whether any mining factors affect the property, which in turn may affect ground stability.
Searches can often take a few weeks to return and it is advised that searches are ordered early in the process to avoid any delays.
After all searches have been received the buyers solicitor will raise further enquiries with the seller’s solicitor if necessary.
Surveys are not a legal requirement as part of the transaction but they are advisable as the survey will help identify any structural issues with the property. The buyer’s solicitor cannot advise on the structures of the property and is important that the buyers raise any queries with their surveyor. It is important to understand that a survey is not the same as your mortgage valuation, so it is advisable to obtain your own survey, or at the very least, a Homebuyers’ Report.
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Enquiries
Enquiries are raised to help the buyer and their solicitor learn and understand more about the property. The enquiry process is an ongoing Q&A between the solicitors and any third parties to raise any points from a legal or a personal perspective from the buyers. The enquiry stage is the lengthiest part of the process and delays are to be expected.
The buyer’s solicitor will review the contract documentation and searches if received from the seller’s solicitor and will request further documentation or explanation on the information they have been provided. The seller’s solicitor may need to forward the enquiries to the seller or any third parties such as freeholders or management companies.
Leasehold properties will have a management company who will be in charge of the maintenance of the property and the owners will be liable to pay service charges. The buyer’s solicitor will request the Leasehold management pack (known as the LPE1) from the seller’s solicitor to confirm the fees that will be payable. It is important to note that there will be delays when receiving management pack from third parties. It is also important to note that there is an additional charge for these packs, and sometimes, depending on the management company, these fees can be quite expensive.
Additionally, some freehold properties, (usually new build properties) will have a management company to pay towards the upkeep of common spaces, and the solicitors will conduct enquiries on the relevant Freehold management pack (known as an FME1), once this has been supplied.
Once the buyer’s solicitor has received the management pack, they will review the documentation and raise any further enquiries with the management company.
After receiving the management pack, your solicitor will carefully review the documents and may raise any questions or concerns with the managing agent. As a buyer, it is important to also thoroughly review the pack. You should pay particular attention to:
- Service charge and ground rent amounts
- Any planned major works and associated costs
- The financial health of the management company
- Any restrictions on the use of the property
If there is anything unclear or concerning, make sure to consult with your solicitor for clarification.
During the enquiry stage both solicitors will liaise in relation to the drafting of the legal documentation, ensuring the correct names, addresses etc are on the documents. Once the drafting has been approved, the buyer’s and seller’s solicitor will send the paper work to their clients for signature in readiness for exchange.
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Exchange
At this stage, all enquiries have been satisfied and the solicitors have agreed a date for completion. Upon authority from their clients, the solicitors will exchange contracts and from this date the buyer and the seller enter into a legally binding contract to complete the transaction. If either party does not proceed with the transaction following exchange they will be in breach of contract and liable for costs and losses.
The buyer will pay their deposit to their solicitor prior to exchange in readiness and this is payable on the day of exchange. A 10% deposit is usually required for exchange of contracts.
Exchange of contracts can take place days or weeks before completion, or sometimes on the same day. This is agreed by the chain involved and is dependant on circumstances.
Once contracts are exchanged, it is now time to prepare for a completion. The solicitors will prepare their files. On a purchase, if the buyers are purchasing with a mortgage, the funds will need to be requested by the buyer’s solicitor. Mortgage funds are usually requested to be received the day before completion to avoid delays. Your balance of funds (from your own personal finances) will be payable and a completion statement will be provided prior to exchange to confirm the balance due to your solicitors from you.
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Completion
Funds will be sent to the seller’s solicitor on the day of completion and the seller’s solicitor will confirm with the buyer’s solicitor that the funds have been received. Once funds have been received and this has been confirmed between the solicitors, completion has taken place!
The solicitors will contact their clients and the estate agents (if any) to confirm completion has taken place and keys will be available.
Following completion, the buyer’s solicitor will pay any Land Transaction Tax (LTT) (Wales) or Stamp Duty Land Tax (SDLT) (England) that is payable.
Following completion, the seller’s solicitor will pay off any mortgages secured on the property in the name of the seller.
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Post Completion and Registration
Completion has taken place, it is time for the buyer’s solicitor to register the property into the new owner’s names. The buyer’s solicitor will prepare the application to be sent to the HM Land Registry to update the title.
There are currently delays at the Land Registry and some applications can take months to complete. As soon as the application has been returned, the solicitor will contact you and provide you with a copy of the updated title presenting your name(s).
Conveyancing Quote https://www.mpgsolicitors.co.uk/services/residential-conveyancing/get-a-conveyancing-quote/
Please call your preferred office if you wish to talk to someone regarding your transaction.