A Guide to Purchasing a Property: The Conveyancing Process

Purchasing a property is an exciting milestone, but the legal process, known as conveyancing, can sometimes feel complex and overwhelming. According to a 2024 survey conducted by HomeOwners Alliance, only 52% of homeowners understand the conveyancing process, despite having used a conveyancer or conveyancing solicitor to secure ownership.

To help you navigate the journey, we’ve outlined the key steps involved in purchasing a freehold or leasehold property. While this guide provides a general overview, every transaction is unique and may not always follow the exact sequence outlined below.

The step-by-step process

Stage 1: Making an Offer and Instructing Solicitors

1. You find a property you like and make an offer, either through an estate agent or directly to the seller. The seller accepts your offer.
2. Both you and the seller hire solicitors to handle the legal work.
3. The estate agent (or the buyer and seller in private sales) sends out the Memorandum of Sale to all stakeholders. This is a document confirming the agreed price and details of both parties and their solicitors.
4. Both solicitors write to each other to confirm their instructions.
5. The seller’s solicitor gets the official property documents, including any lease if the property is leasehold, from the Land Registry and asks the seller to complete forms about the property, such as a Fixtures Fittings and Contents form.

Stage 2: Preparing the Contract Package

1. The seller’s solicitor gathers all necessary documents and sends them to your solicitor.

Stage 3: Conducting Searches and Reviewing the Contract

1. Your solicitor checks the contract and reviews the documents.
2. They carry out searches, such as local authority and environmental checks, to ensure there are no hidden issues with the property.
3. If anything is unclear, they ask the seller’s solicitor for more information. If the property is leasehold, additional leasehold enquiries will also be sent to the seller’s solicitor to be answered by the Landlord or their Agents. This is to ensure that any rent/service charge arrears are paid by the seller on or before completion, and that any current disputes that the seller may have with the landlord are resolved before your purchase completes.
4. Your solicitor will deal with any legal enquiries they are able to answer, but they may need to contact you about any they are unsure of.
5. They then prepare a report for you, explaining key details about the property and what’s included in the sale.

Stage 4: Mortgage Offer Received

If you need a mortgage, your solicitor reviews the offer from the lender and explains the terms to you.

Stage 5: Reviewing Search Results

1. Your solicitor checks the search results and reports any issues to you.
2. If necessary, they ask the seller’s solicitor for further clarification if any results could have an adverse impact on the property in the future.

Stage 6: Signing the Contract and Paying the Deposit

1. If everything is in order, your solicitor asks you to sign the contract.
2. You pay the deposit (if required).

Stage 7: Preparing for Exchange of Contracts

1. Once all checks are done, search results are clear, the mortgage offer is confirmed, and the deposit is received, your solicitor is ready to exchange contracts.

Stage 8: Exchanging Contracts

1. Your solicitor contacts the seller’s solicitor to confirm readiness and agree on a completion date.
2. The seller confirms or negotiates a different completion date.
3. Once agreed, both solicitors exchange contracts, making the sale legally binding.
4. At this stage, both you and the seller are committed to completing the sale at the agreed price and date.

Note: If you are buying a new-build home that isn’t finished yet, the completion date will be confirmed later when the property is ready.

Stage 9: Completion Day

1. On the agreed day, your solicitor transfers the payment to the seller’s solicitor.
2. Once the seller’s solicitor confirms receipt of funds, they allow the release of the keys—either through the estate agent or directly from the seller.
3. The purchase is complete, and you officially own the property!

Things to consider when purchasing a property

• You are not legally committed to buying the property until contracts are exchanged.
• If you are also selling a property, it is best to exchange contracts for both the sale and purchase at the same time. If not, you might need to take out short-term finance (which we don’t recommend) or face mortgage complications.
• Do not exchange contracts until you have your mortgage offer and we have received all necessary search results and responses. If you do, unexpected issues could arise that might cause legal or financial problems later.
• If you are using a mortgage, we also act for your lender. We must report any concerns that could affect their security, such as differences between the purchase price and the lender’s valuation. If we receive instructions from you which conflict with our obligations to the lender, a conflict of interest will arise, and we may have to stop acting for you.
• We highly recommend getting a full house survey instead of relying on the lender’s valuation. Please send us a copy of the survey so we can check for any legal issues.
• If this property is a second home, speak to a financial advisor about any tax implications.
• While you may have a preferred completion date, it must be agreed with all parties in the chain. Completion dates are not guaranteed until all solicitors confirm that they are ready. Do not book removals, take time off work, or end a rental agreement until we confirm the date is legally binding.

What happens on property completion day?

• Make sure we have a phone number where we can reach you on completion day, as you may not have access to a landline for most of the day.
• Sellers usually move out by midday on completion day, but it’s best to check with them or the estate agent to confirm key collection details and any special arrangements. However, the seller does not have to hand over the keys until their solicitor has received the payment.
• On completion day, we send the payment to the seller’s solicitor. Before we can do this, we must first receive mortgage funds and, if applicable, the money from your property sale. The timing depends on banks and other solicitors, so we cannot guarantee exactly when the money will go through. This means you may not get the keys until at least lunchtime.
• Remember to take meter readings and inform utility companies as soon as you move in.

The conveyancing process may seem complex, but with the right legal support, it runs smoothly. Being aware of each stage helps buyers understand what to expect and ensures a stress-free property purchase.

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Disclaimer

The contents of this blog or any other published by Talbots Law cannot be considered as legal advice. You should take no action without prior consultation with a qualified solicitor or legal professional.