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Thursday, October 16, 2014

All you wanted to know about conveyancing cost and the actual process

Property conveyancing
Large multi-unit investment property transactions may benefit from conveyancing

If you are new to dealing with property and want some help on understanding conveyancing and the involved conveyancing factors, here is a brief discussion of the process. Let us take up one topic at a time to get an overview of what to expect.

Why conveyancing?

This is best described as the complete process that helps in completing a property exchange between a buyer and a seller. The process usually includes much more than setting up of legal documents and exchange of contracts. It is the set of activities that you need to go through, as a buyer or the seller, right from the time an offer is accepted on the property till the keys are handed over to the buyer.

Who to reach out for help?

Ideally, the buyer and the seller need to get in touch with solicitors of their own to help them with their proceedings. The conveyancing cost needs to be borne by the two parties individually, unless they have agreed on some sort of an agreement.

How to get started?

Once an offer is accepted on a property, the buyer and the seller need to identify reliable and professional solicitors to help them through the process. Each solicitor is specifically going to look into the interests of their client. It is important to understand that while you can go through the process of conveyancing on your own, having a solicitor to help you ensures that you do not get stuck with legal processes at a later stage and everything goes smoothly for you.

The appointed solicitors would ideally share a draft of activities, terms of engagement and legal proceedings with you, mentioning the associated conveyancing cost factors. They will then proceed with sharing the same with the solicitor of the other party and request their draft of proceedings as well.

Property searches

A buyer’s solicitor generally needs to go through a larger set of activities when compared with the seller’s solicitor. Property searches and background checks are one of them. The solicitor would need to get in touch with various utility and government agencies to determine factors related to the property like flood risks, water resources availability, repairs and renovations history, etc. The solicitor will also liaise with local authorities to understand if they have plans of public constructions in the future where the property being sold can appear to be an obstruction.

All such searches have costs associated with them. To understand such costs better, check websites like Best Conveyancing Quotes and get in touch with them for more help with the entire process of conveyancing.

Getting rid of mortgages

The seller’s solicitor, apart from going through other processes, will need to clear out any outstanding mortgages on behalf of the seller. The mortgages are generally cleared after the exchange of contracts – but the paperwork needs to be ready and in place.

Payments and contract exchange

The solicitors will then share the contracts, help their clients understand and sign them off and exchange the contracts once the payments are made. This very much completes the process, although a few other factors may be left out for the conveyancing solicitors to look into.

Post contract exchange

The legal documents may take up to 20 days to reach the parties. This is something that the solicitor will collect and help you with. The solicitor will also look into payment of the stamp duties after the contract exchange. Finally, the solicitor will hand over a bill for the conveyancing cost incurred.

About the author: Matt is a professional blogger and he writes regularly on legal services related to property. Matt describes the process of conveyancing in brief and cites some of the conveyancing cost factors in this article.

Image: Campanile; "Back to Back House"; CC BY-SA 3.0, GFDL