Buying a house involves much more than simply exchanging money. Solihull is no exception; a range of legal work needs to be done before ownership can be transferred. This part of the process is called conveyancing.
Conveyancing is the legal process of transferring the ownership of a house from one person to another. A solicitor or licensed conveyancer usually does the work. The job is the same no matter who does it. It involves investigating the title of the property, drawing up a legally binding contract, preparing various documents, obtaining a mortgage offer, carrying out searches of the property, exchanging contracts, handling the transfer of the property, and checking the statement of account on completion. The work takes an average of six to eight weeks to complete. Some of the processes may be carried out by the buyer’s or seller’s conveyancer, all of the work is usually reflected in the selling fee.
What conveyancing is
When buying or selling a home, everything has to be drawn up legally. This is called conveyancing – the process of transferring ownership of land and buildings. Conveyancing involves a number of different things: titles (proof of who owns what), a contract (the legal shopping list of what’s included), searches (checks to see if there are problems with the property), and a mortgage link (to make sure the money coming in is correct). If you don’t know what these mean, ask! This is a professional service, and it’s worth you making sure you understand everything that’s happening.
When the whole purchase or sale is finished, the buyer will own the entire property. In legal terms, that means they hold the full title ‘in fee simple absolute in possession’. The title will have been registered at the Land Registry in the buyer’s name, and any mortgage lender will have the relevant entries made against the title to ensure that it is also protected.
The stages of conveyancing
Conveyancing comprises eight key stages, generally occurring in that order (although some can overlap). Within a straightforward sale or purchase, each stage usually takes from a few days to a few weeks. A typical timeline is illustrated in the table below. Still, it’s worth remembering that every transaction is unique: some conveyancers are quicker than others, and local circumstances always play a part.
- Instructions
- Searches
- Contracts
- Mortgage offer
- Draft articles
- Exchange
- Completion
The main stages of conveyancing, with typical timescales. The conveyancer usually handles each stage, although clients can occasionally assist.
1 Instructions: The process starts with clear written instructions. From these, the conveyancer will prepare a draft contract that sets the terms of the transaction and report to the client. In a sale, it’s helpful if the seller can complete the draft contract and provide replies to standard questionnaires before engaging the conveyancer. That way, when a buyer is found, the sale can progress quickly.
2 Searches: The conveyancer sends the draft contract and replies to questionnaires to the buyer’s conveyancer, together with requests for searches. These cover planning, environmental issues, neighbouring properties, local authority matters, drainage and water. If the property is leasehold, information about the management company may also be needed. Searches may uncover potential issues, but they will be a matter of record and cannot be updated. It’s therefore best to have them prepared promptly, even if they won’t be ready in time for the exchange.
Choosing a conveyancer
The conveyancing part of completing home buying can be done by a solicitor or licensed conveyancer. A solicitor is a qualified legal professional who can offer additional services, such as wills and tax planning, while licensed conveyancers specialise solely in property transactions. All conveyancers must follow the regulations set by their governing body: the Solicitors Regulation Authority for solicitors and the Council for Licensed Conveyancers for licensed conveyancers. These governing bodies also provide a compensation scheme for consumers.
When choosing a conveyancer, it is worth comparing costs. Each conveyancer has their own schedule of fees, and costs will vary considerably. Cheaper is not always better, and it is wise to ask for a full breakdown of costs, including searches, whether VAT is included, and if there will be any further disbursements. It is best to ask lots of questions to ensure it is clear who will be doing the work, how quickly it is expected to be completed, and how regularly progress will be updated.
Solihull specifics to know
Before jumping into instructions, the search process, and everything else, it would be good to highlight a few specific things to know about Solihull. Unsurprisingly, this will be of particular relevance to anyone buying in or around the centre, or particularly out to the south-east corner, since a good portion of the local site-specific searches are triggered by how those parts are shown on the underlying local land registry maps.
An important thing to know here is that when buying in Solihull, there is a particular risk that your conveyancer won’t have anyone local in the office to do searches. This offers no real cost savings, but might delay things, since your solicitor will have to instruct somebody else to do the local searches for you.
In Solihull, the majority of residential properties are either detached or semi-detached, with a few bungalows as well. Apartments are less common, and terraced houses rarely come up at all; if you are looking for one of these, it can be worth expanding your search area to adjacent towns. Also, because they often have large gardens or outdoor spaces, many properties have encroached over their boundaries, which then appear in the contract but are not shown on the registers. With that in mind, I’d like to ask your conveyancer to prepare your personal deed.
Another thing to know is that the search process will usually take longer than in other parts of the country. Two of the more common reasons for this are that there are traditionally more owners in the chain, and the local authorities like to take their time issuing search certificates. As with any large town or city, the presence of a university can also add delays, both in the approval process for buildings and in the availability of affordable student housing.
Costs and fees
Considerable costs are associated with any house purchase beyond the house’s actual price. Major costs are generally as follows.
Legal Fees: Legal fees will vary depending on the conveyancer’s experience and reputation. Do not simply choose the cheapest. The adage “you get what you pay for” applies. The quote should also state whether it includes VAT. Conveyancers may advertise a low price, but by the time they add the disbursements, VAT and other costs, it can be challenging to identify the true cost until late in the process. Ask if it the total figure is the “all in” price (or “no hidden extras”). On the subject of disbursements, ensure these are listed and estimate the total cost.
Search Fees: These are the out-of-pocket expenses for obtaining local authority, drainage, and environmental searches. The conveyancer will charge these at cost.
Stamp Duty. If the house purchase price is in excess of £125,000 (or £300,000 if a first-time buyer), Stamp Duty Land Tax (SDLT) is payable to HMRC. This is in addition to all the above costs and will add thousands of pounds to the total required to complete the purchase. Ensure there are sufficient funds to pay this as well. Allow for one extra day’s interest on the mortgage to cover this payment time. See [Link] for current rates and exemptions.
A final note regarding costs is that, with the exception of the mortgage lender’s fees, house buying is exempt from VAT. Also, the legal work for the house purchase is classified for VAT purposes as a disbursement, and as such, it is not subject to the additional VAT charge. However, if the conveyancer acts for both the buyer and the seller, VAT cannot be eliminated as a disbursement, as both parties cannot be treated separately.
Common pitfalls and how to avoid them
Conveyancing is a complex process with many small parts, all of which must work correctly for it to go smoothly. Here are some of the more common causes of problems, along with steps you can take to help prevent them.
Many buyers assume there are only a few legal documents to sign and that it’s all over. In fact, the contract pack is usually a big bundle of papers, and you can get caught out if you don’t check it all carefully. Surprises are not welcome, and there have been cases where the property is not what the buyer expected or where a nasty restriction is hidden in the details, like being unable to keep a dog. The easy way to avoid this problem? Ask questions. Your conveyancer needs to know what you want, and they’ll be pleased if you point out anything in particular that you’re interested in or worried about.
Another pitfall arises when a buyer’s conveyancer does not make an absolute requirement that all relevant searches be carried out. A lender won’t advance money until the searches are in, but a buyer sometimes thinks everything will be alright and that they can get moved in and sort anything out later. After all, buying a house is exciting! But problems can emerge, for example, during heavy rain, if the property is on the floodplain.
Buying a property is generally straightforward, but anything can happen. Deadlines are important, and missing one can cause real problems. It’s a good idea to keep an eye on things, especially the deadline for returning the mortgage offer. If that is not signed and sent back within the time limit, you lose the offer and have to start again.
So, keep an eye on the deadlines set in the timetable and keep your conveyancer updated with any changes in your circumstances. Your conveyancer will keep the lenders updated, but it helps to remind them of anything they need to know.
What to expect at the exchange and completion
At the exchange, the buyer and seller sign the contract they have agreed on. This moment makes the deal legally binding. The buyer pays a deposit, usually 10% of the agreed price. The seller’s conveyancer has a duty to ensure that the funds are cleared before exchanging contracts, as they will not be able to go back on the deal.
On completion day, the buyer’s conveyancer pays the seller’s conveyancer. Once the seller’s conveyancer confirms that the funds have cleared, the buyer can collect the keys and move into the property. The buyer should generally provide building insurance details to their conveyancer before this process starts, and should also check whether the seller has left behind outside items that were agreed during the sale. The buyer should receive a copy of the stamped, completed Transfer within a month of completion.
Unforeseen issues can cause a last-minute failure to complete. For example, the buyer may have been informed that financing would be straightforward but was not approved for a mortgage on time, or there may be outstanding issues highlighted in the seller’s responses to searches.
After the purchase
When the purchase completes, the conveyancer needs to register the change of ownership with the Land Registry and submit a Stamp Duty return. The buyer becomes responsible for paying the Stamp Duty, even if the seller made the application. Once payment is made and the sale is registered with the Land Registry, the buyer can obtain a copy of the title. The title registers the buyer as the legal owner.
After completion, it’s a good idea to contact the local water & drainage authority to ensure the bill is being sent to the new owner, and to inform the council of the change in ownership. Most local councils do not automatically send a council tax bill, so to avoid an unexpected demand for payment, it’s wise to contact them to check. Similarly, it’s essential to contact the local gas, electricity, and telephone companies about the change in ownership and set up an account, if necessary. It’s also worth checking to see if any of these services have been disconnected or aren’t currently in use.
Keep all documents related to the property purchase together in a safe place and avoid misplacing or misfiling important paperwork. This includes all of the documents received from the conveyancer, the certificate of title from the seller’s solicitor, and any insurance documents received in connection with the purchase. These papers will be particularly useful in the future when deciding to sell the property. When the time comes to move in, it’s good practice to conduct a final inspection of the property. A walk-through provides an opportunity to ensure utilities have been connected, that everything is clean, and that nothing has been damaged since the last visit.
Conclusion
In summary, the goal of conveyancing is to make the purchase of a property as smooth as possible. And while you might not deal with most aspects of it directly, some smart preparation will make the experience a lot easier. If you would like, a good conveyancer, preferably one who understands the specific issues that Solihull properties usually have, and stay in regular contact about the timing, so that you can respond quickly to queries.
When the right buyer for your property appears, the contract will be prepared and will then be a single signed document containing the names and addresses of both you and the seller, along with details of the property’s location and boundaries. All the important checks will have been done, so there shouldn’t be any nasty surprises. It is also when you will pay the deposit, which is usually 10% of the purchase price. Funds are transferred through the online banking system, so you will need to ensure that your bank or building society is aware of the transaction. That’s also true for receiving the mortgage proceeds to pay for the property.
After that, it’s just a matter of waiting until the completion date arrives. When that day finally comes, you will grab the keys, start moving in, and open a bottle of champagne to celebrate your new home. In a few weeks, your conveyancer will receive title deeds confirming your ownership of the property, and you will also be reminded that Stamp Duty must be paid.
