Home Business How The Conveyancing Process Works When Buying a Property?

How The Conveyancing Process Works When Buying a Property?

189
0

Have no idea about the legal terms involved in property trade? Confused about the process and various formalities? Fret not, it is natural to become overwhelmed as there are a lot of steps involved in the process. A property conveyancer can handle the process on your behalf, ensuring a hassle-free property trade experience. Conveyancers are legal experts versed in all aspects of real estate. So, they can finish the property buying process more effectively in a short time.

Still, it is important to have a brief idea about the process. For this reason, we have explained how conveyancers proceed with different steps of the property trade process and finally close the deal successfully. Read out to find out!

Steps Involved in Conveyancing When Buying A Property

Instructing The Conveyancing Lawyer

The process starts with the estate agent exchanging the details of the seller and the buyer’s solicitors. Afterwards, your conveyancer will receive the contract pack from the other party’s solicitor. Besides, the seller’s solicitor will also send the following documents to your conveyancing lawyer:

  • Property Information
  • Contents and Fitting

The “Property Information Form” document has all the required information about the property like planning permission, environmental issues, boundary disputes, warranties, guarantees, etc. On the other hand, the “Fittings and Contents Form” contains details about the items you get with the house like carpets, curtains, etc.

Note: In case the property is leasehold, the other party’s solicitor will create a copy of the lease and include in it the contract pack.

The pack also contains the deeds’ title, which clarifies the type of property ownership. If you opted for a mortgage to purchase the property, your conveyancing lawyer will also get a copy of the accepted offer.

Facilitating The Property Survey

Although it is not compulsory to perform this step, still the property survey process is carried out by every conveyancer. Because it helps to find out the potential issues with the property. If some major faults get highlighted while surveying, your solicitor can talk to the other party about fixing them.

 Alternatively, the property price can be re-negotiated to close the deal in a way that is more profitable for you. This way, a property survey makes sure that the property you are buying is free from defects so you don’t have to face any trouble later. Apart from surveying, you must check for the following things yourself:

  • Unusual or old construction
  • The roof is thatched or has a timber frame
  • The building is in a poor condition

In extreme conditions, you may consider stopping the deal and not buying the property. Otherwise, one can negotiate with the owner and get the property at a decreased price or get the issues fixed.

Making Property Searches

In this step, the property conveyancers perform searches to get to know the important information about the respective property. Besides, they cross-check different data to ensure that there is no risk associated with the property. Afterwards, they finally exchange the contractors with the seller.

It largely depends on the property location that which type of searches will be performed by your solicitors. However, we have listed the common types of searches below:

  • Risk of Flood
  • Checking Repair Liabilities
  • Rules of Local Authorities
  • Environmental Factors
  • Water Drainage Systems
  • Planning and Mining Searches

If any of the above-mentioned or other issues are found, your conveyancer makes the other party familiar with it. Afterwards, you either get the issue resolved, or the property price is adjusted accordingly.

Performing Contract Exchanging

Before exchanging the contracts, you need to go through the transfer deed, the final completion statement, and the mortgage deed. After thoroughly reading these documents, your conveyancer will get them signed by you.

Before finally exchanging the contracts, your conveyancing lawyer will confirm from the Land Register that there are no amendments and the property is the same as when the initial searches were performed.

Finally, the transfer deed, reviewed and signed by you, is sent to the other party’s conveyancing lawyer. After that, there will be the exchange of the contracts followed by sending the deposit to the seller’s conveyancer. The completion of this step means that you are legally bound to purchase the respective property.

Completing The Purchase

The day, when the deal is finalised and the property actually gets transferred to your name is termed “completion day”. As some amount is already paid in the form of the deposit, the conveyancer subtracts that from the total amount and pays to the seller. This way, they obtain the “Transfer Deed”.

Note: In case you are making the property deal with a mortgage, the conveyancing lawyer will get in touch with the mortgage lender and request finances.

Afterwards, the documents such as transfer deeds, title deeds, and proof of mortgages are obtained by your conveyancer.

Post-Completion Formalities

In the final step, if any stamp duty is applicable, your conveyancer pays it on your behalf. Also, the solicitors perform the important task of registering you as the new owner of the respective property. There is a deadline for completing the registration within 30 days from the date of purchase.

Note: In case you completed the property deal with the help of a mortgage, the authorities will provide your conveyancer with the title deeds, which need to be transferred to the respective lender. On the other hand, if you use cash to complete the deal, the deed will be passed directly to you.

The above-mentioned steps may vary a little like the rules and regulations of local authorities vary according to the location. For example, Melbourne conveyancing is different from other cities. Hence, some of the steps in the respective processes are accordingly adjusted.

Conclusion

After going through the above steps, it is clear that property buying is a tedious task for the ones not having knowledge about legal terms. A professional versed in law can effectively guide you at every step of the property trade. This way, you are assured of ending up in a profitable state when the deal is closed. Moreover, the risks of committing any missing faults in the property during examining it are eliminated when a professional is there to assist you.

Previous article5 advantages of installing a heat pump
Next articleTop 5 tips to follow while investing in mutual funds

LEAVE A REPLY

Please enter your comment!
Please enter your name here