Key Processes in Acquiring a Property

It’s critical for house buyers and sellers to comprehend the fundamentals of the conveyancing process in order to participate and comprehend the numerous stages. A competent lawyer will keep you informed at all times, and you will know what comes next if you understand the procedure.

Below are the steps involved in the purchase or sale of a property

Step One

A buyer makes an offer, typically through an estate agent. A lawyer will be required by both the buyer and the seller; this is frequently when the initial delay occurs. It may seem obvious that if you buy a house, you need a solicitor. However, it is surprisingly typical for a buyer to only start looking for a solicitor once they have had their offer approved. The procedure of choosing a firm they are satisfied with, hiring the attorneys, signing the terms and conditions, and confirming the buyer’s identity, all of which are required by law, may take some time. Only after everything has transpired will the buyer’s attorney write to the seller’s attorney to verify that they are representing the buyer. I hope this is sent via email rather than by mail! Following communication between the buyer’s and seller’s solicitors, the seller’s solicitors must forward all preliminary information to the buyer’s solicitors.

Step Two

The buyer’s attorney receives the prepared sale documents and information. Typically, a home sale needs at least:

• Title paperwork A contract
• A transfer
• Property Information
• Fittings and Content Form

Step Three

The buyer’s solicitor receives the seller’s property information. A buyer’s solicitor is unlikely to review the information the same day it is received, history tells us a traditional solicitor is generally working on information received 3 to 5 days prior.

Traditionally, once the seller’s solicitor has delivered the title documents, the buyer’s solicitor will request property searches. Searches are encouraged for all property acquisitions and are obligatory where a person is acquiring with the help of a lender. Searches can take anything from 3 days to 8 weeks to be returned.

Information and documents to be reviewed include:

Contract: this document has been very much simplified over the years and should come in a standard and accepted format. All that usually needs to happen is the names and addresses are checked for accuracy. Behind all residential contracts, there is a set of standard conditions, these standard conditions have been drafted by a body of professional experts to be as fair as possible for both parties. The contract is a legally binding document and can have significant implications for a party who breaches its terms. In practice, if no terms are breached, the document is not used for anything further after the purchase has taken place.

Transfer: this is usually a very standard document and is the form used to ‘transfer’ the property from the seller to the buyer and update the title records at the Land Registry. Again, it should mostly be a matter of checking the names and address are correct. In more complex transfers, i.e. where only part of a property is being transferred, the document becomes more complicated. Title documents – All registered properties have a title Register and a title Plan. Often, there are additional documents which contain other rights affecting or benefiting the property.

Title Register: This has 3 main sections –

Section A: which includes (to name a few) – Description of the land with reference to the Title Plan; Details of any exclusions from the title, such as mines and minerals particulars of Lease (if leasehold); Matters that benefit the land such as: Easements, Rights, Privileges, Covenants, Party wall declarations.

Section B: which includes – Class of Title; Name of the owner; Address for service of the owner; Restrictions; Notices; Positive covenants; Purchase price (or value declared).

section C: which includes notices of – Leases; Mortgages and charges; Other interests adversely affecting the property; Restrictions relating to charges/mortgages.

Step Four: Searches for properties

Conveyancing property searches are reports that show whether a property being bought has any concerns related to flooding, mining, subsidence, planning enforcement, and other environmental issues.For instance, a search by the local authority will reveal details about any applications, approvals, and enforcement notices related to building regulations and/or planning. Additionally, it will indicate whether a property is in a conservation area, whether any of its land is needed for public use, whether it is a listed building, etc. The buyer’s attorney applies for a property search, which is typically done through a search firm.

Except for a search conducted by the local authorities, most searches are conducted by accessing electronic records, which can be received in a few days. Either a particular department within the Local Authority conducts a local authority search (this is an “official” search) or an independent business sends an agent to the appropriate local authority office to review the records and give the search results. Therefore, depending on the local authority and its lead times, a local authority search might take anywhere from three days to eight weeks.

It is crucial that a buyer’s searches be started as soon as possible because a local authority search may take several weeks. A title plan for the property must be given to the search provider in order to apply for the majority of property searches. The title plan is acquired by the seller’s attorney and forwarded to the buyer’s attorney in a conventional conveyancing process. The buyer’s lawyer will eventually need to wait in order to request the property searches.

Typical residential searches consist of:

• drainage systems
• Searches for local authorities
• environment
• planning
• flooding
• chimney maintenance
• and coal mining

Step Five: Questions (asking the seller for additional details)

If there are any issues that need more research from stages three and four above, the buyer’s attorney will “raise inquiries” (ask questions) with the seller’s attorney. Such inquiries could be about the property title, such as asking for further details about covenants that influence the property or a right of way over or from the land. Some inquiries are requests for more details based on the seller’s information on the Property Information Form. Surprisingly often, for instance, a seller would state on the Property Information Form that they have had gas, electricity, or construction work done on the property; however, copies of the required paperwork, such as building code completion certificates, may not be provided

Additionally, at this time, the buyer’s attorney may provide them with a “report” that includes all of the information that the seller’s attorney has provided up to this point. Any questions that have been brought up with the seller’s lawyers but have not yet received a response will be taken into consideration for this report.

In addition to reviewing the list of fixtures and contents left at the property, the buyer can now verify that they are satisfied with the information thus far and compare the boundaries with the title plan. You should provide any documents, certificates, or information regarding the property that is either listed on the Property Information Form or that you believe may be required if you are selling it.

Step six: Handling Issues

The seller’s solicitor must communicate with the seller to get the necessary extra information and/or paperwork once the buyer’s solicitor forwarded the inquiries to the seller’s solicitors. The seller may need to wait a few days or longer to obtain the necessary information, particularly if a duplicate certificate or information from a third party is needed. Ideally, the seller’s attorney will begin analyzing the inquiries within 48 hours. The information and any papers will be forwarded to the buyer’s solicitor for review when all of their inquiries have been adequately handled.

The buyer’s solicitor may have asked more questions or sought more information from the seller’s attorneys since the seller’s solicitors’ responses may not have been adequate to address the legal issue. Obviously, this causes further delays and may occur more than once. The case cannot proceed until the legal concerns have been sufficiently resolved. In certain situations, the problem can be resolved and the matter can move forward by obtaining an indemnity insurance policy.

Step Seven: The Buyer’s Report

To make sure the buyer is aware of all the pertinent facts regarding the property and the transaction, all of the seller’s information must be given to them, along with summaries and explanations, after the legal concerns have been sufficiently addressed. A final report is typically given to the buyer to make sure they have all the information and, more significantly, are satisfied with all the information, depending on the scope of any reports that have already been given to them.

At this point, the buyer should anticipate the following in addition to the final information

• Draft invoice and completion statement
• stamp duty form
• final contract for signature
• final transfer for signature
• and a document attesting to their agreement to contract exchange and satisfaction with all information.

The buyer will also receive the mortgage deed to sign and a very brief mortgage summary if they are taking out a mortgage.

Step eight: Contract Exchange

All of the following must take place in order for contracts to be exchanged:

Each lawyer has a signed contract from their client.

Everyone in the “chain” has agreed on a completion date. The buyer has given their lawyer their deposit.

The buyer and seller have granted their respective lawyers final authorization to exchange contracts (typically on the day of exchanging contracts).age.

Step Nine: Finalization

This is surprisingly easy. After completing the aforementioned post-exchange procedures and receiving all funds, the buyer’s attorney will electronically transfer the completion money to the seller’s attorney.

When the seller’s attorney has received the money, they will call the buyer’s attorney to make sure the sale has been finalized and the money has been received. After that, the seller’s lawyer will give the estate agent a call to make sure everything is in order and that the buyer, who is now the property’s owner, can receive the keys.

Following confirmation of completion from the seller’s attorney to the buyer’s attorney, the buyer’s attorney will call the buyer to verify the acquisition has been completed. On the same day, the seller’s lawyer will settle any outstanding mortgage and provide the seller the remaining amount. Additionally, they will forward any original property documents and the seller’s signed transfer to the buyer’s attorney. The buyer’s attorney will handle the registration of the property transfer and pay the buyer’s stamp duty.

The transfer of the property will be recorded at the Land Registry by the buyer’s attorney. It can take up to six months for the Land Registry to process this, which is typically done electronically.

Step 10: Signing up

Following the registration of the transfer, the buyer’s solicitor will get an updated copy of the Title Register from Land Registry, which they will then forward to the buyer. An electronic printout of the Land Registry’s electronic records or property ownership is all that the Title Register is. A second copy of a Title Register can be acquired from Land Registry for a nominal charge in the event that one is misplaced. These days, original “deeds” are rare, and title deeds are typically no longer needed to be kept on file.