The conveyancing process
Conveyancing is the work done by the solicitors of the seller and buyer. This work includes all the legal checks and formal agreements required to transfer ownership of the land and property from seller to buyer.
This begins by the buyer and seller each agreeing to the terms of their solicitor's client care letter and confirming their instruction of the solicitor.
During this process it is the responsibility of the buyer's solicitor to investigate and inform the buyer and buyer's mortgage company of the legal aspects of the property.
The buyer's solicitor will first obtain a copy of the Home Information Pack, usually from the estate agent, in order to save time and cost for the buyer.
In the meantime, the seller's solicitor will prepare a draft contract of sale and send this to the buyer's solicitor.
The seller will be asked to complete a Property Information Form (giving important information about the property) and a Fixtures and Fittings Form (outlining what is included in the sale) which is forwarded to the buyer's solicitor.
The buyer's solicitor may amend the contract or raise additional enquires of the seller's solicitor based on information in the contract or the Title Information in the Home Information Pack and request any warranties for work undertaken (such as if new windows have been installed) or evidence of planning consents.
The buyer's solicitor will also order from a search provider such as PSG Cornwall searches including:
• Local Search which summarises information held by Cornwall Council such as whether the property is in a conservation area, is a listed building, the planning history of the property, the responsibility for maintaining roads and the existence of public footpaths affecting the property. Note that this report may also indicate the likely affect of radon gas, a naturally occurring radioactive gas, which is abundant throughout Cornwall and is an accepted part of living in the county. Note that the local search can be obtained from the Home Information Pack but, if it is more than six months old, a PSG Local Search can be refreshed at a reduced rate.
• Mining Search which identifies from mining archives any potential risks associated with past mining or quarrying activity in the vicinity of the property.
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Environmental Search which looks for potential ground contamination, flood risks, ground stability and radon likelihood because these are things that could affect the future value and enjoyment of the property to be purchased. Good quality environmental data is an essential part of residential conveyancing.
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Planning Search which gives greater information on the immediate area in which the property is situated, including whether there are planning permissions for neighbouring properties or land (such as a new retail park etc), whether the council is proposing development in the area, are there any mobile phone masts, are there any public rights of way nearby, council tax costs, crime figures, nearby schools and local amenities.
• Flood Search which highlights potential flood risks associated with a property and gives an indication of insurability of a property.
• Chancel Search which explores a quirk of medieval law whereby a church is able to claim funds from local homeowners for maintenance of the chancel.
• South West Water Drainage and Water Search outlines issues such as the location of water and sewerage pipes in the vicinity of the property and water quality tests.
• The seller's solicitor in the meantime will apply for a mortgage redemption statement to state the amount and terms of paying off the mortgage of the property to be sold. The buyer's solicitor will also draw up a Transfer document to transfer ownership from seller to buyer.
• Once the formal mortgage offer has been received by the buyer's solicitor, searches have been analysed, any additional enquiries are resolved, the buyer's solicitor will report to the buyer on any issues. Once the situation is accepted by the buyer and seller and any required insurances have been purchased, their respective solicitors fix a date for completion, the purchaser pays non-refundable deposit and the parties enter into a legally binding contract. This is what solicitors call “Exchange of Contract”. Completion occurs when the buyer pays the balance of monies to the seller.
