Buying to own your property is a significant step to take. But that process cannot be complete except there is the conveyancing stage, from when you hunt for a suitable property to getting the keys. If you consider what an agent, solicitor or conveyancer goes through to complete your home purchase deal, you will appreciate them better. Then, when a property seller accepts your submitted offer, the process begins until you get access to your new home.
The conveyancing process involves about seven basic steps where the conveyancer or solicitor gives you representation in the negotiation. Endeavour to consider each of these steps to see how they help you arrive at the best quality of results.
Step 1: Submit your information
The first step in conveyancing is for you to provide your conveyancer with all your detailed information to file a formal work relationship. You should also include standard instructions on what you will have them do for you, including the kinds of property. It may be a physical or online form; you should ask questions if anything is unclear.
In addition, the solicitor will need to verify your identity, so you should give a valid government-issued ID document such as a driver’s license or international passport. In some firms, the process may be done via electronic means using a smartphone, which is easier, safer and more secure. In addition, the conveyancer may require evidence of your source of funding to comply with any anti-money laundering regulation.
In many cases, conveyancing cannot complete without proof of the source of funds. The government of Australia wants to be sure that properties are not changing hands to fraudsters.
Related: Benefits of Using a Local Conveyancing Solicitor
Step 2: Get the contract pack and the legal title
When you have given your conveyancer all your details and details of the property you want, you can wait to receive the contract pack. The pack will include all the contract documents, including the legal title. The conveyancer or solicitor’s job is to contact the home seller and request a draft of the documentation prepared by the seller’s agent.
This pack may also contain the property forms and fittings as well as the form of the content. Your conveyancer will review the contract pack to verify there are no issues with the property’s legal title. He should also read through the contact draft to ensure every term is correct, including all the relevant information, such as the purchase price with full names.
This pack must contain information on the building works, insurance claims, utility records and electric/gas maintenance. The arrangement should show which items are included or excluded by the seller as shown in the contracts.
Step 3: Review the Property Search results
While reviewing your property contract pack, the conveyancing process continues as you can review the property searches. At this level, it is still a local authority search, including the checks for all planning applications, land charges, and road status. Check out the drainage and water search to see the flow of drains and sewers.
On the other hand, watch out for the environment to understand if the property is susceptible to flooding, contamination or subsidence. The conveyancer may also conduct additional searches based on the local area and unique requirements. After completing the investigation, the necessary actions need to be in place.
Step 4: Manage the Mortgage
The next thing to take care of is your mortgage and get a copy of the issued mortgage on the property. Next, share a copy of the mortgage offer with your conveyancer, who is equally representing your mortgage lender in this equation. While working on closing the deal, the conveyancer protects both your interest and the lender’s interest to ensure everything proceeds smoothly.
There may be instances where you get a report of a potential issue with the property from the lender before approving the mortgage. After your conveyancer receives your submitted mortgage, they will send a mortgage deed to sign. Signing the deed enables the lender to place a charge on the legal title of the property. As a result, they can use this clause to repossess the property if you default on any of the expected payments.
Step 5: Filing a Property Report
The conveyancer must have received all the replies to enquiries on the property, including the mortgage offer and search results. It is not time to prepare a formal report containing all this property information. However, it may also include the legal advice you need before investing your money into the property. With the buyer’s agreement, the conveyancer gets a deposit on the contract terms in exchange for the contract being signed.
Step 6: The exchange and completion
When you get the contract, you sign it and pay the property’s first deposit. But at this level, the purchase is not yet binding because the contract exchange is yet to occur. At this stage, your conveyancer or solicitor discusses the potential dates to complete the deal and get you the keys to the property. After both parties agree on a date, the conveyancer proceeds with the final check on the property to ensure all identified issues have been resolved.
On the other hand, he checks the terms of the mortgage funds from the lender and verifies all the documents. After checks are complete and the seller’s solicitor is satisfied, too, your conveyancer calls you to get verbal authority to exchange contracts. This authority is scheduled for the agreed date and is legally binding on the purchase. You cannot possibly back out of the deal without a fine, while the seller is bound to sell the property to you alone.
Step 7 – Post the Completion
After you purchase your house in full and get the keys, your conveyancer should pay the land tax returns and stamp duty, if any. He files an application to the local Land Registry first to register your details as the property’s new owner. After completing the registration, you get an updated copy of the title register with your name on it. This formal approval bearing your name is conclusive evidence that the property is entirely yours as approved by the local authority. On the part of the authority, the records are updated in every suitable place.