Purchasing a home for the first time can be both exciting and overwhelming. One of the key aspects of the journey is understanding the conveyancing process, which involves the legal and administrative steps required to transfer property ownership from a seller to a buyer.
In this blog post, we will discuss why residential conveyancing is important, the stages of the conveyancing process, and how Peter Ross can help.
Why is residential conveyancing important for first-time buyers?
Residential conveyancing is an important part of the property transaction process as it addresses all legal requirements and potential risks that may arise during and after the purchase.
It allows buyers to ensure that all aspects of the property are considered before making the purchase. This includes various factors, from ensuring that the property’s title is valid and free of any legal disputes to compliance with local planning, zoning, and building codes. This is to protect buyers from inheriting future liabilities, such as fines or orders to undo unapproved changes.
Conveyancing also plays an important role in drafting and managing contracts between the buyer and seller, ensuring that the contracts are legally correct and reflect the terms of the agreement. This protects the buyer’s investment, reducing the likelihood of future legal disputes or financial losses.
What are the stages of conveyancing?
As a first-time buyer, it’s important to understand how the conveyancing process works. Residential conveyancing usually involves six key stages, each crucial to ensuring a smooth property transaction.
We’ve outlined the six stages of the conveyancing process for a typical property sale and purchase transaction below.
Stage 1: instruct a conveyancing solicitor
Once you’ve found your ideal property and had an offer formally accepted, it’s time to hire a conveyancer to handle the legal aspects of the transaction.
The instruction stage is the first and most important step of the process, especially for a first-time buyer with no experience in the market. Hiring a professional conveyancer will assist buyers in avoiding potential pitfalls, navigating complex legal procedures, ensuring their best interests are represented, and providing complete peace of mind during what can be a stressful process.
Once appointed, the conveyancer will collect key information from the seller, such as property details, standard forms, and mortgage arrangements, as well as conduct the necessary ID and anti-money laundering checks on the property. They will also communicate with all parties involved on your behalf to establish timelines and expectations.
Stage 2: arrange a property survey
While a property survey is not required by law, it is beneficial to have one conducted before moving into a property. The survey provides a thorough evaluation of a property’s condition, helping to identify any potential issues such as structural defects, damp, or electrical problems that may not be immediately visible.
As these kinds of issues can be easy to miss, a survey is critical to determine the true condition of the property and avoid any unexpected repair costs.
Once the survey is completed, your conveyancing solicitor will be able to advise you on the next steps. The property may require additional investigations, and if problems are discovered, you can use the information to renegotiate the purchase price or request that the seller address the repairs before completion.
Stage 3: conduct property searches
Some aspects of a property cannot be found in a survey. This is why, as part of the process, a conveyancer will conduct a series of legal property searches to ensure that there are no additional factors to consider. We have detailed these below.
- Local authority: This will determine whether the property is subject to any legal restrictions or obligations, such as tree preservation orders or planning permissions, as well as any nearby planned developments or road schemes that may affect the property’s future use or value.
- Water and drainage: This is conducted with the local water authority to ensure that the property is connected to the public water supply and a suitable drainage system.
- Environmental: This will identify any potential environmental risks to the property, such as flood risk, subsidence, contamination from previous industrial use, or proximity to landfills.
- Chancel repair: This determines whether the property has a historical obligation to help repair the local church. While this is a rare and long-standing obligation, it can still have an impact on properties in certain areas.
- Land registry: This will confirm the legal ownership of the property and check for any existing charges or restrictions, such as mortgages or covenants.
These searches ensure that buyers have all of the information they need to make an informed decision while also protecting them from future complications.
Stage 4: exchanging the contracts
This stage is where the contract becomes legally binding. At this point, both the buyer and seller will sign their copies of the contract, which includes all agreed-upon terms such as the sale price and completion date. This will require paying a deposit to demonstrate the buyer’s financial commitment to the property, which is typically around 10%.
The signed contracts are then exchanged by the buyer’s and seller’s conveyancers. This process usually involves conveyancing solicitors reading out the contracts to each other over a recorded phone call to ensure they are identical before exchanging them either via post or electronically.
Stage 5: purchase completion
On the day of completion, the buyer’s conveyancer will transfer the remaining balance to the seller’s conveyancer, completing the financial transaction. Once the funds are received, the sale is finalised and the keys are handed over to the buyer.
Stage 6: post completion
After the purchase is completed, the buyer’s conveyancer will perform several administrative tasks to ensure that all legal and financial details are properly handled.
The conveyancer will first register ownership with the land registry, submitting all necessary documents such as the completed transfer deed and proof of identity, to ensure that the buyer is legally recognised as the property’s owner.
Next, they will arrange for the payment of any applicable ‘Stamp Duty Land Tax’, ensuring that it is paid within the required timeframe so the buyer avoids paying any penalties. Once this is completed, they will complete any remaining administrative tasks and ensure that all documents related to the property transaction are properly filed and retained. A copy of the completed property deeds is then sent to the buyer for their records.
How Peter Ross can help first-time buyers with residential conveyancing
Purchasing a property doesn’t have to be a daunting process for first-time buyers.
At Peter Ross, our residential conveyancing team is here to guide you through the process from start to finish. With years of experience, our team are ready to help navigate you through the journey of buying your first home with ease.
Get in touch with us today for a free initial consultation.