What is conveyancing?
Conveyancing is the process of transferring a property from one owner (the seller) to another (the buyer) – whether the property is residential or commercial in nature of use.
A solicitor or licensed Conveyancer is usually appointed to carry out the legal work (it takes a very brave person to do it themselves) and when choosing a solicitor it is always best to choose a solicitor who concentrates solely on Conveyancing so that your solicitor is available to speak to you and the other parties at crucial parts of the transaction, and is not in court carrying out other legal work.
The buyer and the seller will usually appoint different solicitor firms to avoid any conflict of interest. Some solicitor firms are set up to act on both sides but this is rare.
The Conveyancing solicitor is the hub of the transaction and the transaction can proceed as quickly or as slowly as the appointed solicitor chooses, although of course there are the legal rules in place that can also slow a transaction. In the case of the seller the solicitor is responsible for drafting contracts, responding to enquiries raised by the buyers solicitors, redeeming any existing mortgage and arranging for contracts to be signed and monies transferred.
The Conveyancing solicitor acting on behalf of the buyer will ensure that he or she has a “good title” of the land, organise searches and raise other relevant enquiries, check the contracts, any mortgage offer and make the buyer fully aware and informed of what they are buying. They will also arrange for contracts to be signed, monies transferred and the property to be legally registered in the new buyers name.
When choosing a Conveyancing solicitor where a mortgage is involved it is important to check that they are on the panel of the lender offering to lend the money.
Under English and Welsh law the transaction is not legally binding until “exchange of contracts” and the buyer or seller can withdraw from the transaction with no financial penalties.
A good solicitor will communicate well with their clients, solicitors on the other side and other interested parties such as estate agents, lenders and mortgage advisers.
Quote types available.
Freehold
Absolute ownership of the land.
Leasehold
Ownership of the land (usually for a fixed period) that is subject to an annual payment of a ground rent to the landlord/owner of the freehold. This usually applies to a flat or apartment.
Commonhold
Commonhold is a system of property ownership in England and Wales. It was introduced in 2004 as an alternative to Freehold and Leasehold. Common parts of the property such as stairs and corridors are held and managed by a Commonhold Association which is a private limited company of which the property owners are members.
Property types available.
Shared Ownership
This is a scheme operated by a Housing Association where the borrower owns part of a property, and pays the mortgage on this, while a Housing Association owns the rest of the property, and the borrower pays rent on this.
Right to Buy
This is when a tenant living in a council-owned property purchases it at a discount, the size of which depends on the length of their tenancy.
New Build
Where a property is being purchased for the first time from the Builder or Developer.
Unregistered Land
Land which has not yet been registered with Land Registry.
Buy to Let
This is where a buyer buys a property with the intention of letting it out on a commercial basis.
Self Build
Where a property is being built with the funds of the mortgage.
