A Guide to the Legal Process of Selling or Purchasing a Property
The conveyancing process can be daunting, especially in today's dynamic property market. We understand the importance of a smooth and transparent conveyancing process. Read on for a legal guide to selling or purchasing a property.
Whether you're in the market to buy an exquisite property or looking to sell your high-end home, understanding the nuances of the legal process is crucial. This comprehensive guide will walk you through the essential steps and considerations for buying and selling premium properties in England.
We have invited Richard Starr (Partner and Head of Property at CDS Mayfair) to walk you through each step of your property transaction, ensuring you are well informed throughout the process.
1. Client Care and Initial Instructions
“The process of conveyancing starts the moment you decide to instruct a solicitor. Upon your appointment, we will send you a letter that contains detailed information regarding the work we will carry out for you as our client and our terms of business. The document will specify our responsibilities to you as well as the scope of work provided by us, it will cover the fee arrangement and who will carry out the work for you. Therefore, make sure to read, understand, and sign and return the letter since it constitutes your instruction to us.
As part of our client care process, we are also professionally obligated to confirm the identity of our clients. This will involve you providing certified copies of your identification documents.
When purchasing a property, we will need to understand how you will fund the purchase, which involves us complying with anti-money laundering legislation and us asking you to provide evidence of your source of funds and source of wealth.
We will also request a payment on account held on account to cover expenses which are incurred at the beginning of the transaction and our initial legal costs.
2. Pre-Contract
When instructed, the pre-contract stage begins. For buyers, this means obtaining a mortgage in principle - an indication from a lender of how much you can borrow. At the same time, sellers will be required to fill out property information forms and submit necessary documentation such as title deeds and any planning permissions, building regulations, consents, guarantees etc, management pack is requested by us from the managing agent (where the property is leasehold). A contract pack will be prepared by the seller’s solicitor and provided to the buyer’s solicitor.
3. Searches and Enquiries
For buyers, our team will carry out a variety of searches to bring to light any issues that may affect the property. These will include a local authority search, environmental search, water and drainage search, and sometimes additional tailored searches specific to the whereabouts of the property. We would also make enquiries of the sellers' solicitors regarding the replies to the Property Information forms. For sellers we will liaise with you to respond to the buyer’s solicitor’s enquiries.
4. The Offer and Mortgage Review and Survey
For buyers, we will examine the terms of your mortgage offer to make sure there are no onerous conditions that will affect your transaction or enjoyment of the property.
Whether a first-time or experienced purchaser we always recommend that you have a professional survey carried out of the property to assess the structural condition of the property ahead of purchasing, even if leasehold as you will be paying for the upkeep of the building through service charges.
5. Report on Title
Following completion of the searches and enquiries we shall, subject to receiving satisfactory search results and replies to enquiries, agree the draft legal documentation and provide a detailed report on title to you summarising the documents and information supplied by the seller's solicitor.
6. Exchange of Contracts
After parties have expressed satisfaction with the contract terms and any queries that might have arisen from enquiries are sufficiently answered, the next crucial stage is the exchange of contracts.
This is the first time the parties are legally bound in a transaction. The two parties sign two identical contracts, and it will be our duty to see that the formal exchange occurs. At this stage, we agree on a completion date, which might be in a week or two weeks. The buyer will also be required to pay the deposit, this will be a percentage (usually 10%) of the purchase price. Most contracts require buyers to take on the risk of the property from exchange of contracts.
7. Pre-Completion
The run-up to completion is where several critical things happen. We will be preparing a completion statement that specifies the financials at the end of the transaction and the amount of any shortfall that remains to be funded. We also conduct final searches to ensure that nothing has been registered on the property title since the initial searches. If you are buying, we will also request the mortgage funds from your lender.
8. Completion
Of course, on the day of completion, it is time to finish up. The buying solicitor sends the purchase money to the selling solicitor. As soon as the money is received, the keys are released, and the seller moves out. Then, the property is officially yours. This does not necessarily happen all at once; sometimes sellers move out before the day of completion, sometimes they do not finish leaving until the afternoon of the day of completion.
9. Post-Completion
After completion, there are still a few formalities left to follow. We will submit a tax return on your behalf and pay any Stamp Duty Land Tax due on, or soon after, the date when the purchase completes and register the change of ownership with the Land Registry. Lastly, we will forward all relevant documentation, including the new title deed, to you and your mortgage lender.
At CDS Mayfair, we provide clients with highly detailed and client-centered conveyancing services. Knowing each step involved in the conveyancing process will help you as you proceed with your property transaction, ensuring everything is done correctly. We have very experienced solicitors who are committed to making sure you go through the whole process smoothly and efficiently and who hold your hand towards realising your property aspirations.”
If you would like to discuss the sale or purchase of a property, please contact CDS Mayfair today on +44(0)2077588170 or richardstarr@cdsmayfair.com to see how they can help you.
The content of this article is provided for general information only. It is not intended to amount to legal or professional advice on which you should rely. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content of this article.
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