THE CONVEYANCING TRANSACTION 

THE BUYERS SOLICITORS PERSPECTIVE 

As soon as instructions are received to act for a client in respect of a proposed purchase, the Buyer’s Solicitors would arrange for the Estate Agents to whom the transaction has been negotiated to forward sales particulars containing all relevant terms of the agreed transaction and details of all parties involved.

In addition, a copy of the Home Information Pack would usually be provided by the Agents. These Packs, amongst other things, contain the pre-contract Searches that should be submitted prior to an exchange of contracts.

The first of these Searches is the Local Authority Search which reveals, for example, whether the road in which the subject property is situate is adopted, and hence, maintained at the public expense and also details of any planning history relating to the subject property.

The Residential Drainage Search reveals, for example, whether the subject property is connected to main drains and sewerage.

Secondly, the Buyer’s Solicitors would contact the Seller’s Solicitors requesting that a draft documentation package is forwarded to them which will include a draft of the contract, prepared by the Seller’s Solicitors on their clients behalf, setting out the specific terms of the agreement between the parties. The Buyer’s Solicitors will want to ensure that such terms and conditions are reasonable, and if necessary, will propose amendments to the draft.

The draft documentation package will, as with the Home Information Pack, contain copies of the Seller’s title deeds and documents and the Buyer’s Solicitors will ensure that their clients will be registered at H.M. Land Registry post completion with “good title” which effectively means that no one will be able to dispute their ownership of the property. In addition, the Buyer’s Solicitors will want to ensure that the property is, for example, not affected by restrictive covenants and rights which would adversely affect day to day ownership. If the property is leasehold, the Buyer’s Solicitors will similarly require sight of the Lease to ensure that there are no onerous obligations contained therein which will need to be observed by the Buyer post completion.

The draft documentation package will also contain standard Property Information Forms dealing with topics such as boundary maintenance and, in the case of a leasehold property, insurance arrangements. Any documentation referred to in these forms should also be provided, for example, copies of any Notices served regarding boundary disputes etc and up to date receipts for payments of contributions towards the cost of a Freeholders insurance.

The Buyer’s Solicitors will more often than not need to raise queries with the Seller’s Solicitors in respect of the draft documentation package and will wish to see a satisfactory response to such queries before allowing the Buyer to legally commit to the transaction through an exchange of contracts.

The Buyer’s Solicitors will also wish to have had confirmation of the Buyer’s financial arrangements prior to exchange which usually means sight of a formal Mortgage Offer containing no unsatisfied conditions.

The Buyer’s Solicitors want to make sure that if they commit their client, the Buyer, to an exchange of contracts and hence a set date for completion, that all monies required to complete will be available at the contractual date.

Once the Buyer’s Solicitors are satisfied that all “the pieces of the jigsaw” are in place, they will report to the Buyer, attempt to deal with any queries he may have and obtain his signature to a copy of the agreed form of contract. The Buyer will usually need to pay a deposit of up to 10% of the purchase price to his Solicitor which will be paid to the Seller’s Solicitors upon exchange and which effectively is the security for the Seller that the transaction will proceed to completion. If the Buyer fails to complete on contractual terms after exchange, it is possible that the deposit can be forfeited, and indeed, the Buyer sued by the Seller for any consequential loss arising through the Buyer’s failing to complete.

Assuming that the Buyer is happy to proceed and agrees any proposed completion date, the Buyer’s Solicitors will proceed to exchange contracts with the Seller’s Solicitors. It is only at this point that a binding legal agreement exists between the Seller and the Buyer and prior to this either party can withdraw from the proposed transaction for any reason and without any financial liabilities to the other party.

Once contracts are exchanged, the Buyer’s Solicitors will immediately submit a Certificate to the Buyer’s Mortgagee requesting relevant advance funds to be made available for the contractual completion date. In addition, the Buyer’s Solicitors will provide a detailed Completion Statement to their client showing any balance monies that need to be paid by the Buyer prior to the completion date.

The Buyer’s Solicitors will also undertake a couple of additional Searches, for example, obtaining on behalf of the Buyer’s Mortgagee, confirmation that the Buyer is not bankrupt.

Finally, the Buyer’s Solicitor will prepare a draft form of Transfer document for the Seller’s Solicitors approval. This is the document that, upon completion, will transfer legal ownership of the property to the Buyer. Assuming that the form of draft is agreed by the Seller’s Solicitors they will arrange for their client to execute the same before completion.

The Buyer’s Solicitors will also check a number of points with the Seller’s Solicitors called “Requisitions on Title” which include amongst other things details of where monies are to paid upon completion.

On the actual day of completion, the Buyer’s Solicitors will arrange for the balance monies payable pursuant to the terms of the contract to be forwarded by Bank Telegraphic Transfer to the Seller’s Solicitors who upon receipt of the same will allow the keys to the property to be made available to the Buyer.

Post completion, the Buyer’s Solicitors will arrange for stamping and registration formalities in respect of the transaction to be completed with the Inland Revenue and the Land Registries respectively and then provide copies of all completed documentation to both the Buyer and any Mortgagee.

This article was produced and supplied by Mr Matthew Conroy LLB

If you have you have any questions regarding the above article please feel free to contact Mr Matthew Conrroy.  E-mail solicitor

Also see:

The sellers’ conveyancing transaction process
Home information packs
Solicitor fees

Contact us or apply online if you require a quick sale of your home.