Conveyancing : Outline of a simple conveyancing transaction

 

Conveyancing- Outline of a simple conveyancing transaction

 

Seller’s Advocate (SA)	Buyer’s Advocate (BA)
Take instructions   At this stage- must obtain documentary proof of the client’s identity (to comply with money laundering regulations)	Take instructions   At this stage- must obtain documentary proof of the client’s identity (to comply with money laundering regulations)
Prepare Pre-contract package   This comprises of; Draft contract, showing what land the seller is selling and on what terms he is prepared to sell Evidence of the seller’s legal title to the property, to prove that he does own it Sometimes the results of the pre-contract searches which the seller has made and the other information about the property   The package may also include other information such as planning permission.
	Investigate Title   Must check that the seller is entitled to see  what he is purporting to sell If problems with the title are discovered, the buyer can withdraw as there is no binding contract as yet
	Pre-contract searches and enquiries   Necessary because of caveat emptor- buyer beware The National Land information service provides an internet ‘one-stop-shop’
	Check buyer’s finances   To ensure he is able to proceed with the transaction, including all associated costs and deposits
	Approve the draft contract   It must be then returned to SA, telling him that the buyer has approved the terms The contract is the prepared for the client’s signatures Two copies are printed, buyer signs one, seller signs the other The contract comes into existence by ‘exchange of contracts’ (i.e. the buyer received the copy signed by the seller and vice versa) Prior to physical exchange through the post, parties usually agree over the phone that the contract should come into existence at that moment. This is telephonic exchange
EXCHANGE CONTRACTS   This marks the stage where a binding contract comes into existence   On exchange, the buyer will normally pay the deposit
	Raise requisitions with the seller   These are questions or requests, usually directed at the resolution of procedural queries relation to the mechanics of completion its self. E.g. buyer needs to know how much money is required to complete, where completion is to take place and who holds the keys. Standard form is usually used here.
	Prepare transfer deed Sends to SA for approval at the same time as requisitions NB sometimes the contract will provide for SA to draft the transfer deed, which will be provided to the buyer at the same time as the draft contract The contract states what the parties have agreed to do, the transfer carries it out
Approve Transfer deed This approval is normally notified to the buyer’s solicitor at the stage when replying to requisition The transfer deed can then be engrossed- i.e. a copy is prepared containing any agreed amendments. This is the copy which will be signed by the parties
	Pre completion searches To ensure no last minute problems have occurred with the title
Prepare for completion   Take steps to ensure that completion will proceed smoothly and without delay	Prepare for completion   Make a checklist of what is to happen at completion, to ensure nothing has been overlooked
Completion
Post completion matters   Tie up loose ends Send the seller’s lender the amount required to pay off the seller’s mortgage, obtain a receipt, and send it to BS who will need this to prove to land registry that the mortgage has been discharged Account to his client for the proceeds of sale and submit bill of costs (if not already done). The proceeds of sale should be dealt with asap, or the SS may have to pay interest on them	Post completion matters   Deal with payment of stamp duty land tax, usually paid within 30 days of completion Particulars of the transaction must be delivered to HMRC after completion, a certificate is then issued which allows registration of the transaction at the Land Registry. Without registration the buyer will not acquire legal ownership to the property After these formalities, BS must apply to Land Registry for is client’s title to be registered. Land registry will provide a Title info Document, which should be kept either with the buyer, lender or BS