I’ve already explained that conveyancing is the legal process of buying and selling in a previous blog post. So how does it work and what happens?
There are some great resources out there and videos on YouTube but most of them simplify the process so much that it’s easy to assume the process is straight forward and fairly quick which is not always the case.
Let’s start at the beginning with an example of someone buying and selling. The first step is of course the biggest, actually deciding to move and hunting for your dream home. Estate Agents will help you sell your home, accept an offer, and place an offer on what you want to buy. Before this if you need a mortgage it’s always a good idea to speak to a mortgage advisor/broker to see what you can afford.
You might hear a few jargon terms used at this stage;
A first time buyer is exactly that. Someone who has never purchased a house before. This can be good as they don’t have a house to sell therefore they can move more quickly to buy yours. Always make sure they are in a good position to get a mortgage before accepting their offer. Your agent can help with this.
A cash buyer will be someone who doesn’t need a mortgage. This however does not mean they have the cash in the bank ready to go. The money may be tied up in an investment, business, or even in another property they need to sell. The Agent will help clarify the position of any buyer who puts in an offer to help you make an informed decision.
Chain free is someone who doesn’t have a property to sell (or buy). This again doesn’t mean they can move straight away they may still require a mortgage but you have the advantage of not waiting for them to find their own buyer for their property before you can all start the process.
A chain is simply where properties and their owners are linked, and one person can’t afford to buy a new house until they have sold their own. Very few people can have 2 mortgages or will want to be homeless temporarily so therefore all people and property in your ‘chain’ will normally move on the same day.
Be aware of people or agents who say someone is ‘ready to move’. This has no legal meaning and is often misunderstood.
In property transactions in England and Wales the deal isn’t legally binding until the point known as EXCHANGE OF CONTRACTS. Until this point anyone can withdraw for any reason. Please try not to make any arrangements or rely on dates until this point. Your Solicitor will advise you further. More on stresses and conveyancing problems in a future blog.
Once everyone in the chain has a buyer in place and the prices are all agreed, you have a ‘complete chain’. Now the legal work really starts and it’s common to take up to 14 weeks from this point to exchange of contracts, and perhaps another week or two until you move in.
The moving day is when the money changes hands, keys are passed across to the buyer and people actually move out (normally around lunchtime). This is known as the COMPLETION DATE.
When you decide to instruct a Solicitor there are a few things to look out for. Shop around, in the same way you might for a new car, and don’t shop on price. Look at reviews online and check the person dealing with the matter is qualified to do so. Word of mouth recommendations from friends and family can also be useful. Also make sure your expectations are clear and talk to your Solicitor or Conveyancer about what you expect. If you have a deadline please be upfront and tell them straight away, especially if you are buying a brand new property from a developer (usually called ‘newbuild’) as they often have strict deadlines as part of the offer they accepted. More on newbuild in another blog.
Most complaints about law firms, especially to do with moving home, relate to communication. Be realistic and treat your conveyancer with respect and they should do the same. Also look at their working hours, for example is it a smaller firm that opens 9-5 Mon-Fri and closes for lunch? Does that suit you? Would you rather have a firm open Saturday morning or evenings to take calls, or would you prefer someone local so you can make an appointment to talk face to face.
Whatever you expect and want, be clear up front and talk. Your Solicitor will deal with lots of different clients with different needs and requirements. They will try hard to get it right for everyone but please do tell them and keep communication going throughout your transaction. As a lawyer being kept informed by clients is really important.
I once had a client fail to tell me they had booked a month-long holiday, were leaving in 2 days, and were expecting to sign documents before they went. I got 2 hours notice of something they had booked months before. Whether it’s email, phone, text or using an app just keep up the communication and it should go both ways.
Many conveyancing firms now offer either an app or an online tracker for your move. These can be useful and some are also able to be used as a messaging service or even allow you to upload documents or fill in forms online. If this is something you want, ensure your Solicitor offers if. If you aren’t concerned or like a more traditional approach that’s fine too.
I can’t possibly fit the whole process into one post so future posts to follow with more jargon and info.
If you have any questions please don’t hesitate to get in touch.
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