What is Conveyancing?
Guide to conveyancing
As experts in conveyancing, we try and reduce some of the mystery of the conveyancing process and our ultimate goal is to give our customers a fast, seamless completion with the minimum of stress during one of the biggest transactions faced in life.
As part of this, we’ve provided a selection of conveyancing facts and answers below to help with those who are considering instructing a conveyancer, or looking to understand more about how the conveyancing process works in real terms.
We’ve also covered off the big conveyancing milestones, and details of the step-by-step process you should expect, as part of your experience working with a specialist conveyancer like Enact.
What is conveyancing?
What does conveyancing mean? In simple terms, conveyancing is the legal process by which property is transferred from one owner to another. Whilst this concept in itself sounds simple, and it can be, unfortunately conveyancing has something of a reputation of being lengthy, complicated and overwhelming.
The residential conveyancing process begins when your offer on a property has been accepted and ends at completion of the transaction. If you are selling, it’s a good idea to instruct a conveyancer as soon as you list your property for sale. Your conveyancer is your legal representative who will complete the legal side of the property transaction process, this includes managing contracts, legal advice, liaising with the other party’s conveyancer and handling the funds on completion day.
The conveyancing process explained
The conveyancing process doesn’t need to be complicated, to help you better understand what happens we have broken down the steps below:
Key conveyancing stages
In order to start the conveyancing process, you need to instruct a conveyancer. If you’re selling a property, it’s a great idea to get a conveyancer or solicitor instructed whilst your house is still on the market. This means you can start completing all the paperwork which will be required once you find a buyer. This can drastically reduce the time to exchange contracts. If you’re buying, while you won’t be able to instruct a conveyancer until you have had an offer accepted on a property, you can definitely obtain a quote based on your likely purchase price.
If you have decided on your conveyancer at the time of making an offer, this can help to show a seller you are serious and are ready to move quickly.
All conveyancers have certain Know Your Client obligations, which basically require the conveyancer to establish that their client’s identity can be verified, through either online or paper checks (usually of passports and driving licences). If you are selling a property you don’t live at, you’ll often be asked to provide some form of identification linking you to the sale address. At Enact, we ask our customers to complete these checks online, as we believe this is the quickest and easiest way.
If you’re buying a property, you will almost certainly be asked to provide evidence of how you are funding the purchase, unless it is immediately obvious (e.g. you are getting a mortgage and the rest is coming from the equity from a property you are selling). All conveyancers and solicitors are under strict obligations to comply with Anti-Money Laundering legislation and have to be able to evidence that property purchases are being funded honestly. It can seem something of an invasion of privacy as frequently bank statements will need to be supplied, but it is a normal part of the process. Again, Enact have an online tool to make this process easier.
At the same time, a buyer will usually be asked to pay upfront for the property searches required on the property. The most common searches are a local, water and drainage and environmental search.
Whilst the buyer is busy providing source of funds information and getting their searches ordered, the seller and seller’s conveyancer have to start pulling together the “contract pack”.
This, collectively, is the documentation which proves the seller has a right to sell, amongst other things.
Official Copy Entries and Plan – these are obtained from the Land Registry and evidence that the seller does indeed own the property in question, they indicate the boundaries of the property, any other third-party interests in the property (e.g. mortgages, people who have a right of way over the land) and any restrictions or covenants which affect the property. The concept of “title deeds” is now quite outdated but if the property is not registered at the Land Registry, title deeds will still be required to sell the property.
Property Information Form – a form completed by the seller regarding boundaries, neighbour disputes and alterations to the property, amongst many other things.
Fixtures, Fittings and Contents Form – a form completed by the seller which indicates what items will be left at the property, and what will be removed, on completion.
In leasehold property, a copy of the Lease will also be supplied, along with a Leasehold Information Form which is completed by the seller.
The “enquiries” stage of a conveyancing transaction is generally the most time-consuming part of any transaction. This is also where conveyancing gets a bit more technical, so if you work with a conveyancer or solicitor who isn’t keeping you updated, you could be forgiven for thinking nothing is happening.
This is the stage where the buyer’s conveyancer checks the contract pack and looks for any anomalies. If the buyer’s lawyer finds anomalies, they then raise questions or “enquiries” to have the position clarified.
Some common enquiries would include:
- Asking for building regulation approval or planning permission for the original property or a future alteration, for example an extension.
- Asking for evidence of a right of way to get to the property or its garage.
- Establishing whether there has been a “breach of covenant” – for example, where there is a requirement to obtain the original developer’s consent to alter the property (this is common on newer properties) but no consent has been supplied for a conservatory at the property.
- In leasehold properties, asking the managing agents whether any major works are to be carried out at an apartment which might make service charges increase.
When trying to answer enquiries, it’s common that the seller’s conveyancer will have to approach the seller, the local authority, the landlord/managing agent or other third parties to try and satisfy the buyer’s enquiries.
This can result in some “back and forth” which can lead to delays in the conveyancing process if any party is not forthcoming with information.
When a buyer needs the assistance of a mortgage to buy a property, a Mortgage Offer will need to be issued.
The mortgage company will issue their offer once they are happy with the valuation of the property and once the buyer has been through their affordability and credit check processes.
The mortgage offer confirms the details and basis on which the loan will be made, for example, the term of the loan and the interest rates.
From the conveyancer’s perspective, it also will often include “special conditions” which need to be satisfied, for example confirming whether any part of the deposit money is a gift from a relative or confirming that an offsite parking space or garage is included in the property being purchased.
The conveyancer will ask the buyer to sign the Mortgage Deed, which confirms the buyer will comply with the terms of the mortgage.
The two important documents which need to be signed in every transaction (although there are others) are the Contract and Transfer Deed.
The Contract is usually signed in “two parts” – this means that the seller and buyer sign their own copy, rather than signing the same document. The Contract contains key information such as the seller and buyer names, the property address, the agreed price and the terms and conditions on which the property is to be sold.
The Transfer deed is the document which is lodged at the Land Registry after completion to change the property ownership from the seller’s name to the buyers. The seller and buyer will usually sign the same copy of the Transfer (also known as the TR1).
Traditionally, the Transfer was signed in between exchange and completion, but as the time between exchange and completion has reduced over the years, most conveyancers will now arrange for the Transfer to be signed before exchange.
The seller will usually sign the Contract as soon as the buyer has approved it. The buyer usually is asked to sign their Contract once all enquiries are satisfied. The buyer’s conveyancer will usually produce a report on the property and ask the buyer to sign the Contract if they are happy with the contents of the report.
Once all the legal work is complete and the buyer has their mortgage offer and searches, exchange of contracts can take place. Exchange of contracts is the point at which the sale and purchase become legally binding.
The completion or moving date is agreed at this point as a term of the contract.
The seller’s and buyer’s solicitors will take authority from their respective clients to exchange and then they go through the terms of the contract with each other on the telephone and agree exchange has taken place.
The original signed contracts are then “exchanged” through the post.
On exchange a 10% deposit is required from the buyer. There are serious repercussions for failing to complete after exchange, and losing that 10% deposit is one of them. This is why it is so important to work with reputable conveyancers and to ensure all finance is in place and all legal matters dealt with before exchange.
A completion statement is a financial statement which shows a buyer or seller the financial transactions that will happen at completion, as well as any money which is due or will be owed. For a seller, for example, it will show the price being paid and then deductions for any mortgage which needs to be paid off and for estate agents/ conveyancing fees. The balance remaining is the amount then due to the seller.
Completion is the day on which all the money changes hands – or in more exciting terms, it’s moving day! The buyer’s conveyancer will arrange to transfer the purchase money to the seller’s conveyancer and at the point that money is received, the purchase has completed and the buyer can collect the keys to their new home.
What are conveyancing searches?
Conveyancing searches provide more in-depth information regarding the property you are considering buying. They also provide information relating to the surrounding area.
Common conveyancing searches your conveyancer will order are:
- Local authority search
- Water & Drainage search
- Environmental search
In addition to the above, if your conveyancer needs more information they may also order:
- Location-specific local searches e.g. coal mining searches or tin mining searches
- Canal & river search
- Chancel repair liability search
- Commons registration search
- Flood risk report
What do conveyancing searches tell us?
Conveyancing searches help to paint a full picture about the property you’re purchasing. This will help identify if there are any issues that need to be highlighted to you, the buyer, to ensure you’re as informed as you can be to either continue with the purchase or walk away before it’s too late.
For example, issues such as the risk of flooding, could mean it’s difficult to insure the property which you’d want to know in advance of making a final decision.
Other problems that property searches could uncover are:
- The property has a debt attached to it, which will become your liability if you buy the property without having the debt repaid before your purchase
- A risk of subsidence, such as a sudden hole in the back garden due to a mineshaft collapsing
- A new road, train, tramline, housing estate, wind farm planned nearby, which could adversely – or positively – affect the price you finally pay for the property
- Your property sits on land which was previously used for industrial purposes and may be contaminated with arsenic, asbestos, solvents or gases that could cause harm or pollute surrounding water
Finally, when applying for a mortgage, the mortgage lender will insist that searches have been carried out.
How long do conveyancing searches take?
When it comes to searches most are fairly quick in their turn-around. As standard practice your conveyancer will order:
- An environmental search
- A water and drainage search
The above typically take between 1-10 days.
The third search is the Local Authority Search – these can be as quick as 10 days to as long as several weeks to be completed. This can be one of the causes of the conveyancing process taking longer than expected.
With over 340 local authorities with inconsistent means of communication, it’s notorious for a local authority search to take a number of weeks so it’s important to get all searches ordered as quickly as possible in the process.
How long does conveyancing take?
On average, the length of time it takes for a property sale or purchase to complete is between 16 – 20 weeks. While Enact always strive to complete a transaction as quickly as possible there are some cases that unfortunately take longer than expected.
For example, those in a long chain are more likely to be held up, or if something unexpected comes up in the searches or enquiries, this can cause a delay. Conversely, a straightforward no-chain sale can complete more quickly.
When looking to understand the different stages in conveyancing and buying a property there’s a fairly standard timeline you’re likely to follow:
- Find a property – once you’ve settled on your location, speak to local estate agents and use online property tools to arrange property viewings to find your dream home
- Put in an offer – once you’ve found your ideal property put forward what you’re willing to offer. Don’t forget to make any conditions clear at this stage
- Any estate agent will more than likely want to see your ‘mortgage in principle’ too so be ready to have this to prove you have the necessary funds to meet your offer
- Your offer is accepted – at this stage you’ll need to appoint your conveyancer and notify the estate agent managing the sale of their details.
- In parallel, the mortgage valuation will be undertaken by your mortgage lender’s valuer – you may also wish to conduct your own independent survey
- Exchange – once all the legal work is complete the buyer and seller can exchange contracts. At this stage, you pay your deposit and legally it’s very difficult to withdraw from the purchase without major financial implications
- Exchange to Completion/Moving day – this does vary – it could happen immediately, or in 4 weeks, but the usual timescale is about a week
- Completion – if you’ve taken out a mortgage then your conveyancer will ensure the remaining monies required to purchase the property are handed over in exchange for the keys. Congratulations, you are now a fully-fledged homeowner and the property is now legally yours!
Why does conveyancing take so long?
This is probably the most burning question on everyone’s lips as buying and/or selling a property does feel like it takes longer than it should. However, it really depends on a number of factors and sometimes it is out of the buyer/vendors’ control. For example:
- Slow searches: Local authorities can be understaffed and therefore are slow at offering search results, which can delay the entire conveyancing process. What’s more seasonal trends in people moving home/staff holidays can really impact this process too.
- Slow response from sellers or buyers: Often it is the seller or buyer who delays the conveyancing process. This could be delays in sending back important information or not signing legal documents promptly. This is more apparent in a large chain.
- Complex transactions: Transactions that include non-standard elements make everything more complex, resulting in delay.
- Unanswered enquiries: If your conveyancer has unsatisfactory answers to any of the queries, they will be unable to proceed to exchange.
- Overworked conveyancers: Solicitors with too many clients to manage may take longer to carry out the needed work.
What can a buyer or seller do to speed up the conveyancing process?
If you’ve committed to putting your property on the market or you’ve made the decision to get on to the property ladder then it’s worth doing your research into finding the right conveyancer to manage your transaction.
To help move things along it’s always best to respond to enquiries or any administrative work requested by your conveyancer as quickly as possible.
However, it’s worth noting that if you’re in a chain, regardless of whether you are always quick to respond, the process will only move as quickly as the slowest person in the chain.
What can delay the conveyancing process?
Unfortunately, property transactions don’t always go smoothly, there are several factors that can cause conveyancing delays. Below are some of the common reasons that can cause your conveyancing process to be slow.
- Delaying instructing a conveyancer – A lack of understanding on when to instruct a conveyancer can lead to delays. Many assume you should only get in touch with a conveyancer when you have had an offer accepted, however the sooner you have someone instructed the faster they can get working on the legal side of the process for you.
- Problems with paperwork – Property transactions involve a lot of paperwork, keeping on top of everything and making sure documents and contracts are provided in good time is important to keeping your transaction moving. Your conveyancer will be able to help you manage this and will let you know what you need to provide and when. Our Case Tracker allows you to manage all of these documents online at a time that suits you, and provides secure communication with your conveyancer, streamlining the paperwork process for you.
- Property chains – although not directly related to conveyancing, being caught in a chain of people buying and selling can lead to delays as all it takes it for one person in that chain to pull out, have issues with their property or changes in finances and you could find yourself delayed if the chain collapses. In these situations, it is important to have a conveyancer who can keep on top of what’s going on and keep you updated.
- Survey or searches reveal problems with the property – issues being raised on a survey is a common reason for conveyancing to take longer than expected. These issues could include damp problems, flood risks, subsidence or that the surveyor has stated the property is not worth what the buyer has offered, which in turns limits the amount of mortgage finance available. Issues raised in a survey are likely to be expensive to fix and may not be affordable on top of the asking price of the property.
- Slow return of leasehold information – Buying a leasehold property has the potential to be more complicated than buying a freehold home, this is due to the fact you are technically leasing the property from the freeholder rather than buying it outright. The conveyancing process can be held up if the freeholder/management company are slow to provide information about the property, including ground rent and service costs.
How to speed up conveyancing
To make sure the conveyancing runs as quickly and smoothly as possible there are a few things that you can do. The first is to start searching for your conveyancer before you have even had an offer accepted. Knowing who you are going to use in advance means that you are able to instruct them to begin work the moment you have had an offer accepted.
Making sure all your paperwork is in order ahead of time and arranging your survey as soon as your offer is accepted will also help speed up the conveyancing process.
Make sure you get regular updates from your conveyancer, if you are using an online conveyancer, you will be able to complete actions such as providing documents and ID digitally which can speed up the process.
How to find a conveyancer or conveyancing solicitor
Choosing who to use for your conveyancing is an important step in buying your home. Ideally you should have chosen your conveyancers before you make an offer. Here we explain how to choose a conveyancing solicitor and the questions you should be asking before you instruct them.
Things to consider when choosing a conveyancer
When deciding who to instruct to take care of your property conveyancing it’s important to have a frank discussion with potential conveyancers to ensure that they are going to fulfil your needs. Be sure to find out about their availability, communication methods and working hours. Keep in mind you will be working with whoever you choose for weeks or months, so make sure you feel comfortable with the conveyancers you instruct.
What questions should you ask a potential conveyancer?
Buying or selling a house can be an overwhelming process, before instructing your conveyancer you will likely have lots of questions. Below are some of the top questions you might want to ask to help you choose a good conveyancer.
- Why do I need your help?
- It may seem an odd question to ask your conveyancer but it will help clarify the benefits you will be gaining from using a conveyancer and exactly what services they offer.
- What are the conveyancing costs?
- Knowing what costs you are going to incur is important. Make sure when looking for a conveyancer that you find out what their fees are and how they are structured. Ask whether they charge a fixed fee or an hourly rate.
- What are disbursements and are they included in the conveyancing fee?
- Disbursements are third-party costs such as searches and registration with Land Registry. Once you have your conveyancing quotes make sure to double check whether disbursements are already included or if they are additional fees on top of the conveyancing quote provided.
- During the conveyancing process who will be looking after you?
- Find out how your transaction will be looked after and by whom. Ideally dealing with one person will help make the process more efficient and prevent you from having to repeat yourself. Also make sure to find out if the person looking after your case is due to be on leave and how your transaction will be looked after in the case of their absence.
- How will they be communicating with you?
- Make sure you ask how they will communicate with you throughout the conveyancing process. You will ideally want to receive regular updates as your transaction progresses so make sure to find out when and how those updates will be made and whether these are included as part of the service. Many online conveyancers provide online case trackers which allow you to keep updated on any changes and communicate with your conveyancer at a time that suits you.
- How long is it going to take?
- The time it takes to buy or sell a house differs from case to case and can be dependent on many different factors. Your conveyancer may only be able to give you an estimate of the time it might take however, by asking this you are showing that you are keen to progress.
When should I instruct a conveyancer or conveyancing solicitor?
With so many things to consider when buying or selling a property it can be hard to know when you should complete certain steps and knowing when to instruct a conveyancer us one of them.
It is a common assumption that you only instruct your conveyancer when you have had an offer accepted on a property. Although this is not wrong, by instructing or at least choosing your conveyancer before you have made an offer or accepted one, you can get a jump start on the conveyancing process when you’re ready.
Should I use the conveyancing solicitor recommended by my estate agent?
Buying or selling a property is often the largest financial transaction that a person will make in their lives so making sure you are working with people you feel like you can trust is important.
Many estate agents, developers and lenders have preferred conveyancing solicitors that they will recommend you use, but should you use the conveyancer they suggest to you?
It may appear to be more straightforward to use the recommended conveyancer, however estate agent recommended conveyancers can often be more expensive so it may be beneficial financially for you to shop around.
It is also important to make sure you are working with people that meet your requirements and who are going to act in your best interest. That is not to say that if you are recommended a conveyancing solicitor that they are not the right fit, just be sure to ask plenty of questions and look around at other options before making a decision.
Is online conveyancing safe?
In the past, conveyancing was very much process taken care of by bricks and mortar high-street solicitors. These days more and more people are choosing online conveyancing.
One question that often gets asked is, is online conveyancing safe? The simple answer is yes, using an online conveyancer is just as safe as using a traditional conveyancing solicitor. However, it is important to make sure you do your homework on the company to make sure they are legitimate and able to provide the services you need.
It is a good idea, as well as asking questions, to take a look at any reviews for the online conveyancer you are considering instructing. These will help to give you a better idea of the level of service you can expect and how trustworthy the company is.
Using an online conveyancer is not only safe but can also help streamline your property transaction, with more online touch points giving you quick access to information and an easy, secure method of communication. Online conveyancers are also likely to provide online case trackers to help keep you up-to-date with any changes or actions needed to complete your property transaction.
What is a conveyancing quote?
A conveyancing quote is the estimated cost for the legal processes needed for the transfer of property from one owner to another.
What your conveyancing quote includes can vary, so it is important to ask questions before deciding on who to instruct to work on your behalf.
What should be included in a conveyancing quote?
Typically, your conveyancing quote would include:
- Conveyancing costs (a basic fee that covers the solicitors time and expertise for processing your transaction)
- Search fees for local authority, drainage and environmental searches
- Land Registry fees
- Stamp Duty (if purchasing a property)
- Bank transfer fees
Want to understand more regarding potential conveyancing fees? Get your free conveyancing quote today.
Get in touch
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