A guide to the property buying legal process
Buying a property can be a bewildering experience, especially when buying for the first time. There are many potential pitfalls and buyers should be very careful. Please do ask us about any questions or concerns you may have. We are here to help you.
An average property purchase takes 6-8 weeks from the point when you instruct us to handle your matter through to completion day (that is the day when your property becomes yours and you can move in!). Matters can and often do take longer when there is a chain of transactions. We shall do our best to ensure your matter proceeds as quickly as reasonably possible.
Step 1 – Initial instructions.
You should let the estate agents know as soon as possible that we are acting for you. You should also make sure you tell us that you want us to act for you (ie. ‘confirm your instructions’). Remember to send both the estate agents and ourselves any information that may be needed as soon as can. The estate agents will then put the seller’s solicitors in touch with ourselves. You do not need to do this.
Step 2 – Preparation of Contracts
Things will normally go quiet for a week or two after initial instructions have been given while the seller’s solicitors obtain the seller’s title information and prepare the contract documentation. During this period (if you have not done it already) you should make sure that you have your mortgage application in hand, and that your mortgage lender has all the information it may need from you.
Step 3 – Sending Out
Once we have received the contract documents, we shall send out any searches that need to be done eg. mining, drainage. The results of these normally take 10 – 14 days to come back. In the meanwhile, we shall raise any questions we have relating to the seller’s legal title to the property with the seller’s solicitors.
Step 4 – Signing Contracts
Once your mortgage offer has been received, your search results are back and our title queries have been answered, we shall arrange to see you to sign the contract and other documentation. Contracts do not come into legal effect until exchanged (see step 5).
Step 5 – Exchanging Contracts
Exchange of contracts is so called because we literally exchange signed copies of the contract with the seller’s solicitors on your behalf. The property still belongs to the seller at this stage, but from this point onwards, neither you nor the seller will be able to withdraw. You will usually be required to pay a 10% deposit on exchange of contracts, although a seller may accept less.
Step 6 – Completion
This commonly takes place a week or so after exchange of contracts, but exchange and completion can take place on the same day, or several months apart! The completion date is usually fixed on exchange of contracts. On completion, the purchase price (less the deposit) will be sent to the seller’s solicitors. Once they have received the money (normally around the middle of the day) you will be able to collect the keys (often from the estate agents) and the property is yours.
Step 7 – After Completion
There is still work to be done after completion! We shall submit your stamp duty land tax forms and pay any stamp duty land tax which may be due. We shall then register your ownership with the Land Registry. This is very important as registration needs to take place to prove that you own the property. The post completion work normally takes 4-6 weeks.
