In simple terms, conveyancing is the legal process of buying and selling a property, it’s the transferring of ownership from one person to another. The process begins when an offer on a house is accepted and is completed when the buyer receives the keys.
The conveyancing process is carried out by either a licensed solicitor or a licensed conveyor, and they act on behalf of either the buyer or the seller, a solicitor cannot represent both parties as this would cause a conflict of interest. Essentially the conveyancer is responsible for ensuring that the terms and conditions for the contract of sale are fair, and that all financial information is present and correct.
A contract for sale includes:
• Sale price of the property
• Property boundaries
• What fixtures and fittings, if any, are included within the price, e.g. curtains, carpets, kitchen units etc.
• Any legal restrictions attached to the property
• Any planning restrictions
• Sale completion date
The seller’s conveyancer will be responsible for requesting a copy of the land registry entry, and incorporating these details into the contract for sale before sending it over to the buyer’s solicitor. The buyer’s solicitor will then go over the contract and ensure all information is correct and reasonable, if there’s anything the solicitor is not happy about they can negotiate the terms of the contract until both parties are satisfied.
If the buyer is borrowing money in the form of a mortgage the solicitor will request a copy of the mortgage offer, this is to ensure that the buyer has sufficient funds to purchase the property.
Once both parties are happy with the terms of contracts and all documents have been received they are now in a position to exchange contracts.
Up to this point, either party can withdraw from the process; however the exchanging of contracts is a legally binding agreement and cannot be reversed. Once contracts have been exchanged, the parties will agree a completion date – this is when the transfer of money will be completed and the keys will be handed over and the conveyancing process is complete.
If you would like further information on conveyancing then get in touch with the experienced team here at Bingham & Co, call us today on 0116 253 0091, we’re always on hand to offer any advice you may need.