7 June 2018
The conveyancing process for sellers
We have put together a step by step general guide to the conveyancing process for sellers which we hope you will find helpful:
You should inform the solicitors that you would like to instruct to assist you with the conveyancing transaction, you should also let your estate agent know which solicitor you have instructed. You will then receive an initial letter from that solicitor which confirms your instructions and outlines their terms of business. You will need to sign the solicitor’s terms of business and produce your identity documentation. Most solicitors will require money on account to cover initial expenditure incurred to obtain documentation to prepare the contract pack. If your property deeds are not already stored at your solicitors office, you will need to provide them with the deeds or let them have your lender’s contact details (if the deeds are stored with your lender). Your solicitor will ask you to complete two forms; “Property Information Form” and “Fittings and Contents” form.
You should let your solicitor know at the outset if you are also purchasing a property.
Once the solicitor has the title deeds and you have returned the two forms mentioned in paragraph 1, the solicitor can begin preparing the “contract pack.” The contract consists of all documents which provide relevant information to the sale of the property. The contract pack is sent over to the buyer’s solicitor for them to review and obtain further information, if necessary. The buyer’s solicitor will also conduct searches against the property and raise enquiries about the search results, if required. The searches can often take several weeks to return, depending on the buyer’s providers.
Once the buyer’s solicitor has made all enquiries with respect to the contract pack and their search results, the next stage is for each party to review and sign the sale contract and other relevant documents. Your solicitor will also make the necessary enquiries with your mortgage provider (if there is a mortgage on the property) to determine how much will be required to repay the mortgage on your property. Your solicitor will use this information to prepare a “completion statement” which will detail all the costs of the sale to arrive at the net sale proceeds. At this point, you will be asked to agree a “completion date” with the buyer.
Once the completion date is agreed and the contracts have been signed, the solicitors will be in a position to exchange contracts. The exchange of contracts is a process where each solicitor obtains their clients express authority to “exchange contracts.” Your solicitor will then call the buyer’s solicitor (or vice versa) and confirm that they are holding a signed contract and they will run through the details and confirm contracts are exchanged. Your solicitor will then send your signed contract to the buyer’s solicitor and the buyer’s solicitor will send their clients signed contract your solicitor in the post. Once contracts have been exchanged, you will be legally bound to sell your property and the buyer will be bound to buy it. If either party withdraws from the transaction after exchange of contracts, the other party will be entitled to claim compensation.
After exchange of contracts, your solicitor will advise you of the necessary steps you must take to get ready for completion.
Once completion has taken place (on receipt of the sale monies from the buyer), your solicitor will call you to confirm that you can release the keys to the estate agent. Your solicitor will pay off any outstanding mortgages against the property using the sale proceeds. The title deeds will be sent to the buyer’s solicitor and the net sale proceeds (as shown on the completion statement) will be sent to you.
We will shortly be posting a guide to the conveyancing process for buyers. In the meantime, if you have any questions about the conveyancing process or would like to instruct a solicitor to assist you through the transaction, we offer a free 30 minute consultation. Please call us on 01531 632377 to book an appointment or to ask for a conveyancing quote.