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Conveyancing
Published August 2007
Understanding the process
The three main areas to consider:
Stage one
The work carried out after agreement in principle is reached, but before the seller and buyer are bound by contract to proceed with the matter.
Stage two
The stage between "exchange of contracts" (when the parties become contractually committed) and "completion" (the day on which money changes hands in return for the keys and transfer of ownership, i.e. the day on which you are entitled to move in).
Stage three
The conclusion of the formal side of the transaction, when any Stamp Duty Land Tax Returns are filed and any tax paid. An application is made to H M Land Registry for the registration of title.
Glossary of terms
Appropriate searches - these searches include a local search which is the search in the registers maintained by the district council in relation to such matters as road charges and planning decisions. The expression includes the enquiries made of different departments of the council to do with a wide range of other matters which may affect the property.
Apart from road proposals affecting land within 200 metres of the property, the local authority search will only give information about the property itself. The search will give no information about other property, for example, the development of neighbouring land. If, therefore, you are concerned about the possibility of development or any matter relating to other property in the neighbourhood, you should make enquiries of the local authority before you consent to exchange of contracts on the purchase.
Other searches also include an environmental search, a drainage and water search and a chancel check. Depending on where the property is situated it may also be necessary to carry out additional searches such as a coal authority search, brine search, hard rock mining search, radon search, London Transport or even a British Waterways Board search.
Completion - the date fixed for transfer of ownership, on payment of the price.
Deposit - part of the purchase price paid at exchange of contracts, normally 10 per cent.
Exchange of contracts - the exchange of one copy signed by the buyers for another signed by the seller. At this point both parties become committed to proceed.
Mortgage - document recording loan of money secured on the property. If payments are not maintained, the lender may have the right to take possession and sell the property.
Preliminary enquiries - a series of questions addressed to the seller, who is expected to answer from his own knowledge about such matters as disputes with neighbours, or work to be done on the property needing building regulation approval, or rights enjoyed over the property.
Protocol forms - these are the standard forms which are completed by sellers at the outset of the transaction and consist of the ‘seller’s property information’ form and fixtures, fittings and contents list. If the property is leasehold then there will also be a ‘seller’s leasehold information’ form. The questions are about the property which sellers should be able to answer without too much difficulty. Of course should you have any queries, we are at the end of the phone, or call in to see us. The fixtures, fittings and contents list is filled in by the seller in order to indicate which items are or are not included in the sale price.
Registration of title - ownership of unregistered land is proved by showing its recent history as recorded in the "deeds". In all areas of the country title to land now has to be registered in one of the registries maintained by the Land Registry on completion of a purchase.
The register records ownership and all important details of rights and liabilities and any mortgages affecting the property. Nowadays all Title registers are held electronically and “hard copy” Land or Charge Certificates are no long issued.
Transfer - the document transferring ownership.
Stamp duty land tax - this is a tax on property transactions where the price exceeds £125,000.00 (2007/08 tax year).
The current bands are:
0 per cent up to £125,000
1 per cent from £125,001 to £250,000
3 per cent from £250,001 to £500,000
4 per cent over £500,000
For residential land and property outside of disadvantaged areas there is no change or on zero-carbon homes up to £500,000.
If you would like to find out more about the services that we provide, please e-mail or contact us to arrange a meeting.
