A step-by-step guide to buying or selling property
Conveyancing is the transfer of ownership from one party to another, with one party buying and the other selling. Although buying and selling property may be a simple concept, the process itself can often be more complex.
Between December and January last year, according to Compare My Move, there was a 110% increase in the number of people inquiring about a conveyancing solicitor. If you’re wondering why, there’s a reason! Conveyancing lawyers work on your behalf to check everything you need to know about a home – they take care of all the necessary legal paperwork and property searches to avoid any unpleasant surprises later.
In this blog, we dig a little deeper to guide you through the steps of buying and selling a property and why having a lawyer on your side can provide confidence and peace of mind.
Process steps
Pre exchange
Once a real estate agent has agreed a price with the buyer, they write to both parties’ lawyers with the details.
The lawyers will then write to their respective clients with the commercial terms. At this point, sellers and buyers will need to provide proof of identity and address to prove it is you. Additionally, proof of funds, to ensure the sale is not the proceeds of crime. Both steps aim to prevent real estate fraud. The seller of the property will also complete forms to give information about the property, such as new windows, an extension or issues such as flooding, and will also record any items that are left in the property.
The seller’s lawyer sends several documents to the buyer’s lawyer, including the draft contract, copy of the deeds and property forms. The buyer’s attorney will investigate neighboring rights-of-way and land, such as shared driveways or alleys, to verify whether neighbors have rights to the property, such as the right to use a shared path. The Seller will direct any inquiries to the Buyer through its solicitors to resolve any discrepancies. If the buyer’s attorney finds any discrepancies in the documentation, they will report them to the seller’s attorney to resolve the issue.
The buyer’s solicitor will also carry out three searches on the property’s website;
- Local search to reveal construction work carried out on the property, such as a new fireplace.
- Environmental research to uncover key information about the property’s site, such as whether it was built on contaminated land.
- Drainage and water research to confirm where the pipes run under the property and if the water is connected to the mains.
Upon receipt of requests from sellers and their notaries, a report is sent to buyers via their notary explaining the acts and administrative formalities. If the buyers find everything acceptable, they will sign the contract.
Exchange and finalization
When a “completion date” (the moving date) is agreed, the lawyers exchange contracts. This is the point of no return: neither party can legally walk away from the transaction without repercussions.
Funds are transferred on the move-out date and, once the seller’s solicitor has confirmed their agreement, the estate agent and buyers are informed that the keys can be handed over. After completion, the seller’s solicitor repays any remaining mortgage as well as the estate agent for their assistance in the property exchange. Finally, the buyer’s lawyer will register the change of ownership with the Land Registry.
And there you have it, a real estate transaction is complete!
What legal documents do I need to prove who I am?
Preparing your legal documents is essential to making a real estate transaction as smooth as possible. Your attorney will give you a list of all that are necessary.
To purchase a property you must provide proof of funds – this is usually a copy of your mortgage offer and proof of any other funds used to purchase the property. When selling a property, several other documents are required, including:
- Property title
- Property Information Form
- Layout and content form
- Management information file
- Energy performance certificate
As well as any additional documents referenced in the Property Information Form.
Although this is a significant number of documents to organize and submit on time, attorneys are trained to assist you in this process. A reliable law firm will ensure that all of your responsibilities during a real estate transaction are met in a timely manner.
One of the most important legal documents involved in the transfer of ownership is proof of the buyer’s identity.
Why is it so important to prove who I am in a real estate transaction?
Verification of the buyer’s identity, address and funds is necessary to prevent the possibility of fraud. This confirms that the buyer is who they say they are and that the money they spent to purchase the property was not gained through crime.
The verification process protects you and all other parties from liability in the event of identity fraud. This requires you to demonstrate that you have done everything legally required of you, including proving that you are who you say you are. Proving the source of funds also prevents the risk of money laundering.
As with all legal matters, the key to a successful real estate transaction is organization and legal advice from a trusted attorney. A law firm will help you meet all your responsibilities confidently with minimal stress, giving you peace of mind and ensuring that you can achieve the best outcome for your goals when buying and selling property. ‘a property.
Thomas and Thomas Solicitors are a friendly, local law firm with a unique outlook and inclusive approach to clients with years of experience. With a team of specialists in their specific legal field, the firm offers a range of legal services, particularly in real estate law.
Contact us today by emailing [email protected] or visiting to find your nearest office.
