THE CONVEYANCING TRANSACTION

THE SELLERS SOLICITORS PERSPECTIVE

The first thing that a Seller’s Solicitors would usually do when a Client contacts them to inform them that they have sold their property, is to forward them a number of standard Information Forms to complete.

These “Property Information Forms” are designed to speed up the conveyancing process by pre-empting the queries one would expect a reasonably prudent Buyers Solicitors to raise. The type of points covered are as diverse as to whether there have been disputes with neighbours, to whether the property in question has been structurally altered, to exactly what Fixtures and Fittings are included in the sale price.

Secondly the Solicitors would obtain copies of the Clients “title deeds”. This primarily involves obtaining Official copy entries from H M Land Registry pertaining to the property and proprietorship. However other documents are sometime included, for example, a Deed purporting to grant rights over the property, or in the case of a leasehold property, a copy of the registered lease itself.

Once the Solicitors have obtained copies of the title deeds and indeed the Client has returned the Information Forms duly completed, a draft contract would be prepared in respect of the negotiated transaction. Such contracts usually incorporate standard Conditions agreed by all Solicitors but it is not uncommon for Solicitors to have to slightly vary such standard agreed terms to reflect the particular circumstances of the transaction in question. In the vast majority of conveyancing transactions, matters proceed post-exchange with few problems but regrettably, on occasion, difficulties arise and it is therefore essential that contract terms are clear.

At this point the Seller’s Solicitors submit to the Buyer’s Solicitors a full documentation package incorporating the draft contracts, copies of the title deeds, the Information forms completed by the Client and indeed any additional documentation referred to in such forms, for example, copies of Guarantees relating to works carried out to the property or, in the case of a leasehold property, copies of ground rent receipts and service charge accounts.

Thereafter the two sets of Solicitors will agree upon the form of contract to be used by their Clients and in addition the Seller’s Solicitors will endeavour to provide satisfactory response to any queries raised by the Buyer’s Solicitors after they have had the chance to peruse the draft documentation package in detail.

Once the form of draft contract has been agreed upon, the Seller’s signature to the same is obtained. It is important to note that this not the point of legal commitment to the transaction, but rather signature is obtained in anticipation of that point, which is the formal exchange of contracts.

Once the Clients signature has been obtained to the contract, in many respects the Sellers Solicitors are, thereafter, simply in the hands of the Buyer’s Solicitors (and their Clients), who will confirm there own ability to exchange once various items at their own end have been satisfied, for example, their Client having received an appropriate offer of mortgage finance.

Before actually exchanging contracts the Sellers Solicitors will clarify their Clients instructions and indeed their willingness to proceed to exchange ensuring, for example, that the Client is aware of their obligation to provide vacant possession (i.e. to physically vacate and remove any Fixtures and Fittings not included in the sale price) as at the completion date agreed to be inserted into the contract. In this latter respect it may well be the case that the Client has a related purchase transaction which needs to be exchanged/completed simultaneously.
 
The completion date is ultimately a matter that is agreed between the contracting parties. The Solicitors may have some input in this respect, for example, advising their Clients as to a Mortgagee’s minimum notice period for release of a mortgage advance, but save for these considerations completion can take place on any bank working day.

After exchange of contracts the Seller’s Solicitors will obtain their Client’s execution of an agreed form of Transfer document which will, on completion, pass legal title to the property to the Buyer.

In addition they will provide the Buyer’s Solicitors with replies to a number of post-exchange queries called “Requisitions on Title” which cover various items, for example, confirmation that any mortgages of the Seller affecting the subject property will be repaid upon completion and that evidence of payment will be produced thereafter.

To this end the Sellers Solicitors will also obtain up to date redemption statements from any of their Client’s Mortgagees, and in most instances, obtain details of any Estate Agents Commission payable upon completion, which usually, subject to the Client’s instructions, will be paid by them from the net sale proceeds upon completion.

On the day of completion, having received cleared funds from the Buyer’s Solicitors equal to the contractual sale price, the Seller’s Solicitors will firstly authorise any Estate Agents involved to release keys to the property to the Buyer and thereafter will make relevant payments to Mortgagees, Estate Agents and their Clients. In addition the executed Transfer document and any supporting documentation will be forwarded to the Buyer’s Solicitors so that they may in due course register at H M Land Registry their Clients ownership of the property and indeed any associated mortgage.

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 Conroy. E-mail solicitor 

Also see:

The buyer’s conveyancing transaction process
Home information packs
Solicitor fees

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