CONVEYANCING FAQ

Here we try to answer the most frequently asked questions (FAQ) about conveyancing.  If you have a question that is not dealt with here then please feel free to e-mail any of our conveyancers

Who will do it?

• Your point of contact will be the conveyancer in charge of your transaction or her assistant.  Contact can be made by letter, telephone and e-mail, or by visiting the office.  An appointment is not always necessary, but preferable. 

How long will it all take?

• This depends on a number of factors that can vary from case to case.  A standard transaction, with no complications, will normally take about 6-10 weeks.  You should expect 6-8 weeks to get to exchange of contracts, at which point the transaction is legally binding, and then another 2-4 weeks between exchange of contracts and completion.

• Delays can arise for a number of reasons, eg how long the chain of transactions is; problems getting mortgages agreed; waiting for information from the other side's lawyers, etc.  Generally speaking the longer the chain of buyers and sellers the more likely that there will be a delay at some point.

• We will always endeavour to move the transaction along on your instructions as quickly as possible but we cannot offer any guarantees on how long it will take  and we would advise you to be cautious about anybody that does.

What is a conveyancing "chain"?

• To avoid the risk and cost of owning two houses, people usually try to buy and sell simultaneously.  A number of linked transactions therefore arise, each dependent on the other and exchange of contracts must take place simultaneously in all transactions meaning that the speed of progress is dictated by the slowest link in the chain.

Can I pull out of my sale/purchase?

• You can withdraw from the transaction at any time before exchange of contracts.  As  a purchaser you would lose a any money you have spent on a survey and searches, even though it may not be your fault that the transaction has fallen through.  After exchange of contracts both parties are legally committed to complete the transaction.

When should I apply for a mortgage?

• Do some initial research before you view properties.  There are hundreds of different mortgages on the market and you need to time to find out which one is best for you.  You can obtain a mortgage in principle from most Lenders before finding a particular property.  If you require any assistance we can refer you to an independent mortgage advisor.
 

What is the difference between "exchange" and "completion"?

• Completion date is the date on which you leave your old home and  move into your new.  The agreed completion date is in the contract . Exchange of contracts is the point at which the seller and buyer agree to commit themselves unconditionally to the transaction.

If we have to pay a deposit when is it payable?

• The deposit is handed over when we exchange contracts so your conveyancer will need to have cleared funds by then - ie any cheques will need to have cleared before the deposit can be used.

When will I receive the money after I have sold my home?

• This will be sent to you on the day of completion.  If you are purchasing as well, then the sale proceeds are used towards the purchase price of your new property and any residue will be sent on the day of completion.

How much does it cost?

• If you are selling or purchasing a flat the freeholders sometimes charge a fee for disclosing information.  This will vary according to your freeholder.  If you are buying a leasehold property with a share of the freehold there may be an extra charge to deal with managing agents.

• In addition, if you are selling you need to budget for estate agent's fees (average 1.5% plus vat) and legal fees.  If you are buying you need to budget for legal fees and disbursements.  "Disbursements" are payments made by your solicitor to others such as Stamp Duty, Land Registry fees and search fees.  You will also need to budget for Lender's valuation fees and your own survey fee.

• Find out in more detail by asking us for a quote.

Do we have to pay a deposit?

• You will have to pay a deposit if you are a First Time Buyer.  Normally this is 10% of the purchase price.  You can agree with the seller's solicitors to pay less (they will usually agree to this if you are borrowing more than 90% of the purchase price).  Normally you do not have to provide a deposit if you have a sale and purchase.  This is because you can use the deposit from your sale towards your purchase.  If this deposit is a lot less than the 10% deposit required on your purchase, then you may be asked to make up the difference.  There are no fixed guidelines on this and it will be down to the seller and purchaser and their solicitors.

Do we pay a deposit on the Sale?

• No, a deposit is paid by the buyer's solicitors to the seller's solicitors when contracts are exchanged and not released until completion.
 

You have my search money but have not sent off the searches - why not?

• Some local authorities are not able to carry out a search against a property until they have a plan of the property.  We obtain a plan from the seller's solicitors.  There is a potential delay here as the seller's solicitors will be waiting for the title deeds and can only send us a plan once they have these.  Some local authorities will do a search without a plan but this is down to each local authority.

Do I need a survey?

• If you are obtaining a mortgage a valuer will inspect the property on behalf of the Lender.  Although his report will give you an indication as to whether he thinks the property is worth the amount that you have asked to borrow, you will probably not be able to rely on it if things go wrong.

• For an extra fee you will usually be offered the option to arrange for the same valuer to carry out a more detailed "Home Buyers Report".  This can be relied upon by you so if at a later date you find a problem that is not mentioned in the report, you will have some redress against the valuer.

• If the property is quite old and you are particularly concerned about its condition you can obtain a full structural survey report which is even more detailed.

• Always remember the golden rule is "let the buyer beware" so, provided you have not been misled, you will be liable for any problems that you discover after exchange of contracts.

What do we need to know if we are buying in joint names?

• Most couples who are married or in a stable relationship purchase as "joint tenants" which means that upon the death of one or other of them that person's half share will automatically pass to the other.

• The alternative is to hold the property as "tenants in common" which means that each person's half share is treated as being separate so that upon the death of one or other of them his or her share will not automatically go to the other but to whomever it has been left in the deceased's person's will or, if there is no will, to his or her next of kin.

• If you are putting unequal amounts into the property the person who is paying the larger amount can and often should be protected by a "trust deed" which sets out your respective shares so that in the event of any dispute or upon the death of one or other of you in the future your original intentions will be clearly recorded.  Your conveyancer will be able to advise you on this if you need further details.

• However, there are also other reasons, mainly related to Inheritance Tax Planning, which may determine how the property is held.

When do I have to give you any money and how much?

• It depends on what work we are doing for you.  Once you have instructed us you will receive a letter from us telling you how to proceed.  If you are buying a house we will request an amount to cover the initial searches that we need to undertake which will normally be about £250.  You will not need to pay your legal fees and other costs until we are ready to exchange contracts.

Where do I collect the keys from?

• Generally the estate agents where you saw the property will be holding the keys.  If there is no estate agent involved it would be best to contact the seller directly and make plans to collect the keys on the day of completion.

 How early on completion day can I get the keys?

• On completion day the purchase monies are sent (from the buyer's solicitors to the seller's solicitors) through the banks' electronic system.  This network of computers deals with thousands of transactions every day.  On some days the money can take as little as half an hour to come through, on other days it can take 4-6 hours.  The seller's solicitors cannot release the keys until they have received the money.  This is the reason that some people complete mid-morning and others by mid-afternoon.

 Can I save Stamp Duty?

• It is possible to apportion the price between the bricks and mortar and the fixtures and fittings.  There are a number of rules but the basic one is that any apportionment has to be an accurate reflection of the true price of the items involved.

 Do I pay Capital Gains Tax?

• Not if it is your main residence that is sold, you are exempt from Capital Gains Tax.  If you own more than one property you can elect which property carries the exemption.

• If you are buying a property jointly, arrangements can be made so that you each benefit from Inheritance Tax exemption and this can help avoid paying tax on the value of the property once you die.  Speak to our Probate Department about a "nil rate band discretionary trust".  

 Can I stay in my property after completion?

• No.  The contract provides that you must vacate on the day of completion and clear the property of all your furniture and belongings.  If you do not give "vacant possession" the buyer may sue you for any loss and inconvenience caused.

 How do I deal with council tax and water rates?

• When you have exchanged contracts you need to notify the local authorities and the utility companies that you have sold the property.  Similarly you need to make application for these services at your new property.

 Do I have any comeback on my seller once I have moved in?

• Generally no.  If things do not work you will be liable.  You should always therefore check that all appliances, central heating and other systems are in good working order before you commit to exchange of contracts.  If damage has been caused to the property you may be entitled to compensation and if the seller leaves furniture or rubbish at the property he is in breach of contract because "vacant possession" has not been given.