Conveyancing guide for Sale and Purchase

A conveyancing transaction can be split into three stages.  The first stage is from commencement until exchange of contracts; the second is from exchange until completion and the final stage is after completion.  Although you may not be both selling and buying property, I will describe both sides so that you receive the complete picture.

Sale

1

First the deeds to the property will be obtained either from the building society if in mortgage or from the place where they are safely deposited.
2
It is the seller’s (vendor’s) solicitor’s job to prepare the draft Contract.  The Contract is the document setting out the terms on which the agreement is reached as to the sale of the property.  Once prepared, this is sent to the buyer’s (purchaser’s) solicitor, with any relevant accompanying documentation (eg a plan of the property or a copy of the lease if leasehold).  The buyer’s solicitor may wish to amend parts of the Contract but the seller’s solicitor will only agree to them if in the best interests of his client.  If the seller’s solicitors are operating the National Protocol (which Lee Davies & Co do) when sending out the Contract the Seller’s solicitor will also send a Property Information Form and Fixtures Fittings and Contents Questionnaire the details of which have been prepared in advance in conjunction with the seller.
3

Once the buyer’s solicitor is satisfied with the results of the searches and enquiries and the Contract has been agreed, both the seller and buyer will each sign a copy of the Contract.  The agreement becomes legally binding when the two signed parts of the Contract document are literally exchanged between solicitors and it is from this point that you will be legally bound to complete the sale or purchase.  The buyer’s solicitor will send a deposit with his client’s signed part of the Contract.  This is a sum of money, usually representing 10% of the full purchase price.  It shows the buyer’s intention to proceed with the transaction and will be forfeited by him if he later backs out of the agreement.
4
At this stage, a suitable day for completion and moving out of the property is determined.  It is usually about four weeks from the date of exchange of Contracts.
5
We will then approve the Transfer Deed and ask you to sign it. We will also apply for any mortgage redemption figure and prepare the final accounts.
6

On the completion date we will receive the balance of the sale price, in return for which we will hand over the title deeds to the buyer's solicitors.
7
When the buyer’s solicitor is satisfied with the results of all searches and enquiries and the Contract is agreed, Contracts can be exchanged (as described under Sale).  Remember that the buyer should be prepared to pay a deposit of 10% of the purchase price.
8
We will redeem (pay off) any mortgage out of the sale proceeds, collect our legal fees and disbursements and will forward any left over money to you, unless you are using it for a related purchase.


Purchase

1

The buyer’s solicitor must make sure that the property being bought is as advertised and free from defects.  The buyer should check through the estate agents particulars of sale and confirm that the description of the property, including any fixtures and fittings (ie items attached to the property such as shelves, light fittings and curtain rails), is satisfactory.
2
If the seller’s solicitors are operating the National Conveyancing Protocol they will send a complete package to the buyer’s solicitor for him to check through.  If not the buyer’s solicitors will follow step 3 below.
3
A search will be made at the local authority to discover whether there are any matters or future plans which might affect the property or the surrounding area.  Additional preliminary enquiries will be sent to the seller’s solicitor;  these are specific questions about the property of which the seller should have personal knowledge.  Sometimes it is necessary to ask further supplementary enquiries, should other matters about the property come to light.
4

In some cases it is advisable to have a full structural survey of the property.  The buyer’s solicitor can arrange such a survey, or if more suitable, an electrical check or timber infestation survey.  Unless specifically asked to do so this is something they will leave up to the decision of their client.
5

If a loan is being arranged from a building society, Contracts will not be exchanged until the buyer has received an offer of a mortgage loan.  The buyer should notify his solicitor of any problems in obtaining a loan.
6

The seller’s solicitor will send a draft Contract for approval by the buyer’s solicitor.  The Contract sets out the terms on which the agreement is reached as to the purchase of the property.  The buyer’s solicitor will agree amendments with his opposite number, until he is satisfied with the Contract.
7

When the buyer’s solicitor is satisfied with the results of all searches and enquiries and the Contract is agreed, Contracts can be exchanged (as described under Sale).  Remember that the buyer should be prepared to pay a deposit of 10% of the purchase price.
8

On exchange of Contracts a suitable day is chosen for completion, which is usually about four weeks later.

Although it is usual for a 10% deposit (or sometimes 5% if the seller agrees) to be paid to the seller’s solicitors in many instances we are able to negotiate and a reduced deposit is agreed.  However if a reduced deposit is acceptable, please note that in the event of you not completing the purchase, you will still be liable to the seller for the full 10%.
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