What is Conveyancing? The Conveyancing Process Explained
Conveyancing is a required service when buying and selling a property. Many people may not be familiar with the process, especially if they're a first-time buyer. But, in short, it concerns the legal aspects of transferring property ownership.
There’s a lot to consider when you’re buying or selling a house. From hiring a surveyor to finding an appropriate mortgage lender, there are many services involved. Conveyancing is one of them. The conveyancing process includes conducting property searches, exchanging contracts and finalising the sale. It’s a vital process to the transaction, ensuring it’s completed legally.
To help you with your research, Compare My Move has compiled the ultimate guide on everything you need to know about conveyancing solicitors and their process. From a step by step guide to how much conveyancing costs, we’ve included everything you need to know to help you through the process.
What is Conveyancing?
Conveyancing is a term that refers to the legal and administrative work that comes with transferring the ownership of land or buildings. A licensed conveyancer or a conveyancing solicitor will work on behalf of the person buying or selling the property to make sure the necessary contracts and documents are signed and transferred.
You will need to get a Conveyancer after you’ve agreed a sale on a house with the buyer or seller. Conveyancing will be a vital service for both the buying and selling of a property. When buying, the process will last until you receive the keys and when selling, it ends when you hand the keys over. Conveyancing is one of the main costs of buying a house.
For further information, check out our first time buyer jargon buster.
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What Does a Conveyancer Do?
Your Conveyancer will help take care of the legal side of buying and selling a house, with the ultimate goal being the transfer of ownership. They will ensure that the necessary documents and administrative duties are carried out.
Main responsibilities include:
- Applying for and reviewing Local Authority and Drainage Searches
- Applying for and reviewing location specific searches, e.g. buying a property in a mining area such as Tin Mining in Cornwall or Coal Mining in Wales
- Applying for and reviewing Land Registry searches
- Reviewing the Land Registry documents for the property and providing advice on the content
- Preparation and review of the Contract
- Liaising with mortgage lenders and complying with their requirements
- Liaising with the seller/buyer’s Conveyancer
- Making the Contract legally binding on the seller and buyer, known as ‘Exchange of Contracts’
- Transfer or receive the sale price to facilitate ‘Completion’ of the transaction
If you are buying a property
Your Conveyancer will give advice and explain the conveyancing costs from your property purchase , like Stamp Duty. They will read through and check the contract and documentation on your behalf. These documents will contain vital information like property boundaries, sale price, fixtures and fittings included in the property, etc. They should also be able to tell you if there are any restrictive covenants on the property.
Your Conveyancer will apply for and review a Local Authority Search and a Drainage Search. The Local Authority Search is specific to the property and will provide important information, such as whether the road serving the property is maintained by the council and detail any planning applications for extensions etc. The Drainage Search will confirm the location of any sewers that run near to the property and whether the property is connected to the mains water and sewerage.
Your Conveyancer will liaise with your mortgage lender and ensure their requirements for the property are met.
Once you and your mortgage lender are happy to proceed, your Conveyancer will co-ordinate the Exchange of Contracts, which makes the deal legally binding, and will set a Completion Date (the day you will move in). Their final task will be transferring the sale price to the seller’s Conveyancer, before registering you as the new owner of the property at the Land Registry.
If you are selling a property
Your Conveyancer will give advice and explain the conveyancing costs for your property sale. They will ask you to complete the necessary property information forms and will prepare and send the contract paperwork to the buyer’s Conveyancer.
Your Conveyancer will then help answer any questions raised by the buyer’s Conveyancer about the property
Once your buyer is happy to proceed, your Conveyancer will co-ordinate the Exchange of Contracts and will set a Completion Date (the day you will move out). Their final task will be receiving payment of the sale price from the buyer’s Conveyancer, paying off your mortgage (if any) and paying the net proceeds over to you.
Who Does Conveyancing?
As well as licensed conveyancers, conveyancing solicitors are also legally trained to do conveyancing. Conveyancing solicitors are highly qualified and specialise in a variety of fields in property law. Whereas licensed conveyancers specialise in conveyancing only.
It's not illegal to do your conveyancing yourself, however it's not advised as there are many risks included. These risks could delay or even stop the transaction altogether. It'll save you valuable time getting a professional to do the job.
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What is the Difference Between a Solicitor and a Licensed Conveyancer?
Both licensed conveyancers and solicitors are regulated and qualified to undertake conveyancing. They’re both regulated by professional associations that set standards of practice and offer protection for their clients. Licensed conveyancers are regulated by the CLC (Council of Licensed Conveyancers) and solicitors are regulated by the SRA (Solicitors Regulation Authority) and the Law Society.
Whilst both licensed conveyancers and solicitors are qualified to carry out conveyancing, the main difference is that conveyancing solicitors will be trained in a variety of legal fields in addition to conveyancing. Licensed conveyancers specialise in conveyancing only.
The Conveyancing Process Step by Step
Whether you’re buying or selling your house, you will need a conveyancer for the process. Here, we have broken down the process for both buying and selling a house. The conveyancing process for both buying and selling will start once an offer has been agreed upon.
Below are the 6 main steps that'll occur during the conveyancing process, followed by a quick breakdown for both buying and selling.
How Much Does a Conveyancer Cost?
Conveyancing fees will vary, often depending on the cost of your house. The cost for a conveyancer is typically between £500 and £1,500 plus VAT. Costs could potentially be higher for a 'no sale, no fee' service.
Below are the average costs of conveyancing for the average price of a UK house. According to the UK House Price Index summary, the average house price in June 2019 was £230,292. It's important to note that a variety of factors can influence your conveyancing costs. But to help with your research, we've created a broad overview of the costs for an average priced freehold house.
These are the conveyancing buying costs for the average price of a house, costing between £200,001 and £300,000 (not including stamp duty).
Conveyancing Buying Service | Cost of Service |
|---|---|
| Legal Fee & VAT | £1,040 |
| Conveyancing Searches | £290 |
| Land Registry Searches | £6 |
| Land Registry Registry Fee | £135 |
| Telegraphic Transfer Fee | £40 |
| Total | £1,511 |
These are the conveyancing selling costs for the average price of a house, costing between £200,001 and £300,000.
Conveyancing Selling Service | Cost of Service |
|---|---|
| Legal Fee & VAT | £1,000 |
| Land Registry Document Fee | £6 |
| Telegraphic Transfer Fee | £40 |
| Total | £1,046 |
*We took a sample of fees from 50 licensed conveyancers across the UK to find these averages, but this is just an indication of costs. Fees will greatly vary depending on your situation and conveyancer.
For further details and a deeper analysis of conveyancing prices, you can find Compare My Move's data here in our Conveyancing Costs guide.
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What is a Transfer Deed?
The transfer deed is arguably the most important document in the conveyancing process. A transfer deed is the final document that legally transfers ownership of the property from the seller to the buyer. It will be sent to the Land Registry to complete the transfer of ownership.
It comes in four standard forms, either TR1, TR2, TR3 or TP1, with TR1 being more commonly used. The transfer deed form TR1 is used within the majority of sales since this is for a transfer of the whole of a title by the registered owners.
The transfer deed is drafted by the buyer's conveyancer and has to be signed by the seller. It has to be submitted after the draft contract has been approved and before exchanging contracts.
Learn More About Conveyancing
This is the first article in our conveyancing guide. Next, we will explore what the role of a conveyancer is and what they must do to progress the process. To learn more read what does a conveyancer do?
