Buying And Selling Residential Property

Select An Area... What is involved: the Conveyancing Process? Selling A Property Buying A Property ----- Investigation Of Title ----- Why Do All Those Searches? ----- Your Mortgage When Is A Survey Needed? Finally On The Day Of Completion How Long Does It All Take? What Will It Cost? Fraud And Money Laundering Final Reminders

What is involved: the Conveyancing Process?

The sale and purchase of a property takes place in two stages:

1. Leading to exchange of formal contracts.
2. Second: leading to completion.

Until contracts are exchanged the agreement is not binding on any party, who can withdraw at any time without reason and without paying compensation to the other.

Once contracts are exchanged however the agreement is then binding on both parties and if either attempted to withdraw from the contract they would have to compensate the other for any loss that may be suffered. You would usually have to pay a deposit of 10% of the purchase price on the property you are buying when contracts are exchanged. If you withdrew from the contract you would lose this deposit and would also have to pay the compensation referred to above. (If you are also selling a property we would usually be able to use any deposit received on the sale for the property you are buying, so avoiding you having to contribute any additional cash).

Before you commit yourself by exchanging contracts to buy a property it is important that both you and we are satisfied with a number of issues. Broadly these are as follows:

• That the preliminary searches we undertake do not reveal any matters which are adverse to the property.
• That we are satisfied that the title to the property is in order so that you will take the property free from any adverse covenants or conditions.
• The sellers have not revealed any information concerning the property that might be of concern to you (for example neighbour disputes, problems with boundaries or intended building on adjoining property).
• That your financial arrangements are satisfactory. This is particularly important if you are having a mortgage.
• If necessary, you have had a survey of the property carried out.

On exchange of contracts a completion date is agreed and specified in the contract. This is the date when ownership of the properties will pass; when you can move into the property you are buying and when you must give vacant possession of your present property to your buyer.

There can be a gap of anything between a few days and a few weeks between exchange of contracts and completion depending upon the circumstances, and on occasion both can happen simultaneously.

Between exchanging contracts and completing there are a number of matters that we will have to attend to and a number that you will deal with. Please see our final reminders checklist of matters to attend to before completion.

With the agreement of the other Solicitors involved we will adopt the Law Society's National Conveyancing Protocol known as "Transaction". The use of the Protocol will ensure, so far as possible, that delays are kept to a minimum.

The articles on legal topics published in these pages are for interest only and are necessarily general in their terms. You should not act (or refrain from acting) on the basis of the information given without specific advice, as the principles and laws concerned may change, and their application will vary according to the particular circumstances.