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Top Tips for First-Time Home Buyers: Navigating the Conveyancing Process

4 April 2024

Buying your first home is an exciting milestone but, without a doubt, is one of the most significant financial transactions you’ll ever make. Navigating the legal aspects of conveyancing can be intimidating, but having a solid understanding of the process will make it less so. At Redkite, our specialist conveyancing solicitors understand the need to demystify the legal aspects of home buying, especially for first-time buyers. In this article, we will walk you through the ins and outs of conveyancing, providing you with the knowledge you need to approach the process with confidence.

What is Conveyancing?

Conveyancing is the legal process involved in the transfer of property ownership from the seller to the buyer. This process begins once your purchase offer is accepted and continues until the finalisation of the sale on the completion date. The process is designed to ensure the buyers’ rights are protected and everything about the property’s ownership is made clear and transparent.

The conveyancing process is crucial as it:

• Establishes the buyer’s legal ownership of the property
• Ensures there are no legal obstacles to the purchase (or sale)
• Finalises conditions of the purchase, including the price and where relevant, the provision of a mortgage

Understanding the Stages of the Conveyancing Process

On average, the purchase of a freehold property takes approximately 8 – 12 weeks to reach legal completion because of the number of steps involved. The purchase of a leasehold property (typically a flat) will often take a little longer perhaps 12 – 14 weeks due to needing information from third parties (Landlord / Freeholder and / or Management Company). Here is a step-by-step guide to the stages of the conveyancing process:

Step 1: Pre-Contract Stage – Offer to Exchange

Before the conveyancing process starts, you need to have your offer accepted on a property. The offer is usually subject to the exchange of contracts, which means nothing is legally binding at this point.

Once you’ve found your perfect property and have had an offer formally accepted by the seller, to legally complete the purchase you will need to instruct a solicitor. The estate agent will produce a Memorandum of Sale with the details of the buyer’s solicitor and the seller’s solicitor which is then shared with all parties.

Once the seller’s solicitor receives completed Property Information Forms (also known as Protocol Forms) from their client they will send the contract pack to your solicitor. The Protocol Forms contain details like planning permission, boundary disputes, and more. This is the time to make any pre-contract enquiries about the property, before you are legally obliged to complete the purchase.

Step 2: Post-Offer Stage – Pre-Exchange

During this stage, both you and your solicitor will complete several checks and searches, ensuring there are no material or legal issues with the property. This will include conveyancing searches like an environmental search, and a water and drainage search. If any issue is discovered following these investigations your solicitor will negotiate with the seller’s solicitors to ensure these are addressed before the contracts are exchanged. This step includes the property survey, which is important for uncovering any structural or other issues (such as damp) that could require costly repairs down the line, and that all building regulations have been correctly followed.

The survey report will serve as a reference for current and potential problems with the property, and can ultimately help the buyer decide if they wish to continue with the purchase. If any issue is discovered relating to the fabric of the building following your survey which might require repairs or replacement and you feel that you need to renegotiate the purchase price, then this should be done via the estate agent at the earliest opportunity. Any change in the purchase price will also need to be reported to your mortgage lender so that the mortgage offer can be updated to reflect the same.

Step 3: Exchange of Contracts

Once both parties are satisfied with the property’s condition and the draft contract, you and the seller will need to sign the contract. This legal document should be read carefully by all relevant parties.

Once you have the signed contract, you are not legally bound to proceed with the purchase until contracts are exchanged via your solicitor. Your solicitor will not exchange contracts with the seller’s solicitor without your express authority. On exchange of contracts, you must pay a deposit which is usually 10% of the purchase price.

Step 4: Post-Exchange Stage – Pre-Completion

It is on exchange of contracts that a completion date is set. The completion date is the date when you will get the keys to your new home. Your solicitor will request that you take out insurance from the date of exchange, to protect you in case anything goes wrong (this is also a standard condition of all mortgage offers).

Step 5: Completion Day

On the agreed date, the remaining balance of the purchase price is transferred to the seller’s solicitor’s bank account. On receipt of the purchase monies the seller’s solicitor will authorise the estate agent to release the keys to you and you are then the legal owner of the property.

Your solicitor will receive the signed and dated transfer deed from the seller’s solicitor which is the legal document transferring ownership of the property to you.

Step 6: Post-Completion

Following completion, there are still a few steps to go, including your solicitor submitting the necessary Land Transaction Return (LTT Return) or Stamp Duty Land Tax Return (SDLT Return) and paying any land tax due. The signed and dated transfer deed will be sent to the Land Registry for registration.  Once the property is registered with the Land Registry you will receive a copy of the property title as proof of ownership.

How a Conveyancing Solicitor Can Help

A conveyancing solicitor like those at Redkite Solicitors is there to guide you through the process, ensure you understand your legal obligations and protect your interests throughout the purchase, as well as answer any questions before, during and after the purchase. Here’s how we can support you:

• Contract Drafting and Review – Your solicitor will manage the legal details of the purchase, liaising with the seller’s conveyancer and estate agents and ensuring the contracts are fair and accurate.
• Searches and Enquiries – Your solicitor will conduct property searches and make enquiries to the seller’s solicitor to uncover any potential issues.
• Liaising with the Mortgage Lender – If you are financing your purchase with a mortgage, your solicitor will work closely with your mortgage lender to ensure everything is ready for the mortgage funds to be released on time.
• Exchanging Contracts – This important step is handled by your solicitor. They will ensure all necessary conditions are met before committing you to the purchase.
• Completion and Handover – Your solicitor will facilitate the legal transfer of funds, ensuring everything is in place for a smooth handover of your new property.

Final Thoughts and Additional Tips

For a stress-free home-buying experience, keep these additional tips in mind:

• Start early – The conveyancing process can be lengthy. Starting the process as soon as you have an offer accepted will save time and reduce the risk of your purchase falling through.
• Communicate regularly – Having an open line of communication with your conveyancing solicitor is vital. Regular updates keep you informed of progress and any potential issues.
• Budget for conveyancing costs – Be aware of the costs associated with the conveyancing process. Your solicitor should be transparent with their fees from the beginning, but it’s important to have this in your budget.
• Be prepared to act quickly – There are specific deadlines in the conveyancing process that require a swift response. Being organised and prepared can help you meet these deadlines without unnecessary stress.
• Stay informed – Educating yourself on the types of property searches and queries your solicitor will carry out on your behalf can help you understand any potential issues that may affect your property purchase.

Navigating the conveyancing process as a first-time home buyer is a learning experience. Remember, it’s okay to take your time to understand the process fully, and to ask as many questions as you need to feel confident in your decision. Ready to buy? The conveyancing team at Redkite Solicitors are here to support and empower you throughout this exciting new chapter.