Conveyancing is the process by which a property's legal title is transferred to a new owner. It can also prove something of a mystery to home buyers, especially those who are navigating the property market for the first time, or for the first time in many years. Here, we provide answers to some of the most commonly asked questions.
Is the process the same across the UK?
No. The process in England and Wales differs substantially from that in Scotland. This article concentrates on the position in England and Wales.
When should I instruct a solicitor or licensed conveyancer?
If you are a seller in England and Wales, although it is not necessary to instruct someone prior to putting your property on the market, it may be prudent to do so. First, they can arrange for the HIP on the property and secondly, if you receive a quick offer from a serious buyer, you will then be well-placed to proceed as quickly as possible. Buyers should line up a solicitor or licensed conveyancer before making an offer.
What is the difference between a solicitor and a licensed conveyancer?
A solicitor is a fully qualified lawyer, who is able to offer a wide range of legal services. A licensed conveyancer is a property expert, but will not be able to deal with complex issues falling outside their specialism. Using the services of a solicitor usually costs more than choosing a licensed conveyancer, but there may be rare occasions where someone who instructed a licensed conveyancer subsequently has to instruct a solicitor to deal with unforeseen issues affecting the transaction.
How can I find a legal adviser?
There are several methods.
- Personal recommendation from family, friends or colleagues.
- Recommendation from your mortgage lender, broker or an Independent Financial Adviser.
- Ask your estate agent. However, if you choose this option, beware that estate agents increasingly partner property specialists and so may have a vested interest in getting you to choose a particular adviser. This may also not be the cheapest option.
- Online conveyancing services. These are increasingly popular, cost-effective and can be very efficient with straightforward transactions. However, you will need to remember that you may not have a named point of contact and that they will be unable to deal with tricky or complex legal issues.
Are legal advisers covered by regulatory bodies?
Yes. If you choose to instruct a solicitor, make sure they are a member of the Law Society of England and Wales (or, in Scotland, of the Law Society of Scotland) and are also a member of the Law Society’s Conveyancing Quality Scheme. If you choose a licensed conveyancer, check that they are members of the Council for Licenced Conveyancers.
How much should I expect to pay for conveyancing? Do sold property prices affect the charges?
Many legal advisers will offer you a fixed price conveyancing quote. This will cover your legal adviser's time and disbursements. Other advisers will charge an hourly rate, with disbursements and other costs on top. Finally, some quotes do correlate to sold property prices in that you will be charged a percentage of the property price. Quotes should also cover additional expenses incurred by the solicitor (photocopying, postal and courier charges etc.), the cost of searches, Land Registry fees, bank transfer fees and any Stamp Duty Land tax payable on the property. It should also include VAT. If a quote seems too good to be true, it is sensible to enquire whether it includes all these separate elements. It is also wise to obtain more than one quote, so you can compare options.
Once you have received your quote, you can expect it to remain unaltered unless the transaction ends up differing from the one for which the quote was provided. For example, this may happen if you are quoted for conveyancing on a property with registered title, but it turns out that the property is unregistered. In this or a similar eventuality, you should expect your legal adviser to provide clear written communication of the reason for the change to the fee.
How long does the conveyancing process take?
The answer to this depends on the property being purchased, whether or not it is in a chain and on the responsiveness and cooperation of both parties to the sale and of the local council. On average, after instructing your solicitor or licensed conveyancer, you can expect to wait between 10 and 12 weeks before receiving the keys to your new property.
Why do property "chains" affect the speed of the conveyancing process?
Most people are either unwilling or unable to finance the cost and risk of owning two properties at the same time. Consequently, buying a property usually necessitates forming one link in a "chain" of associated transactions. Many buyers and sellers prefer as short a chain as possible. Some would-be buyers, particularly towards the bottom end of a chain, will walk away if a chain either does not close quickly enough or gets too long. Partly for this reason, some sellers who are keen not to lose a sale may be willing to close the chain by moving into rented accommodation rather than waiting for the right property to come onto the market. As a result, the overall state of the local property market can affect how quickly a chain closes. For example, if properties outnumber potential buyers, it may take some time to complete the chain. Exchange of contracts takes place simultaneously along the chain. The precise timing for this will be dictated by the speed of progress of the slowest "link".
Can my solicitor or licensed conveyancer protect me from gazumping?
Unfortunately, there is no foolproof way of protecting yourself against gazumping in England and Wales. However, although not commonly used, your legal adviser may be able to put in place a lock out agreement to guard against this risk.
I am buying a new-build property and the developer wants me to exchange contracts within 28 days. Can I do this even if I haven't sold my own property?
It is common for developers' solicitors to pre-package legal work. This tends to mean that they have a set way of proceeding with transactions. However, it is fairly common for developers to permit buyers to exchange contracts conditionally upon the sale of their existing home. Your legal adviser will be able to assist you with this and help agree a mutually satisfactory timescale for exchange.
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