Entering the modern-day property market? Read all about online conveyancing, a useful guide to help you during your property transactions.
Read on to learn about the conveyancing process for sellers.
What is conveyancing and why is it important for sellers?
Conveyancing refers to the legal transfer of property ownership from one party to another. For sellers, this process involves a series of legal and administrative tasks.
These include preparing and submitting various documents, such as the property information form and the draft contract.
Sellers also engage with professionals like estate agents and conveyancing solicitors. Their role is to guide and represent the seller throughout the process.
Pre-conveyancing tasks
First, decide who you want to choose for this task.
Solicitors or licensed conveyancers can handle the conveyancing work. We have a detailed article about the difference between conveyancers and conveyancing solicitors.
While it is possible to do it yourself, this is generally not advised. Select a conveyancer who offers a 'no sale, no fee' service rather than one who charges by the hour.
It's best to avoid large conveyancing firms and those recommended by online, hybrid, or corporate estate agencies.
Conveyancing fees
Conveyancing fees for a standard sale usually range from approximately £600 to £1,000 in total. Read our detailed article to get a better idea of the ongoing rates for conveyancing.
Stages of the conveyancing process for sellers
Initially, sellers appoint a conveyancing solicitor and prepare essential documentation. This phase includes gathering legal documents proving ownership and filling out the standard property information forms.
The next stages involve negotiations with the buyer, often facilitated by estate agents, leading up to the exchange of contracts. This step legally binds both parties to the sale.
The final stage is completion, where the legal transfer of ownership occurs, followed by post-completion formalities.
Preparing for conveyancing
Choosing the right conveyancing solicitor
Selecting a conveyancing solicitor ensures a smoother process. When choosing, consider their expertise, fees, and communication style.
Look for someone experienced in selling properties similar to yours. Seek recommendations from friends or your estate agent. Confirm their accreditation with the Law Society's Conveyancing Quality Scheme. This choice sets the tone for your conveyancing experience.
Initial paperwork and legal requirements
Begin by assembling all necessary documents. This includes title deeds, which your conveyancing solicitor or mortgage lender might hold. Collect recent utility bills, council tax statements, and identity proofs like a passport or driving license.
If your property is leasehold, include your lease, details of ground rent, and service charges. For freehold properties, gather any relevant building control certificates. Ensuring these documents are ready, expedites the initial stages.
The importance of accurate property information
Accuracy in property information is fundamental. Complete the property information form with care. It includes details about boundaries, disputes, and alterations. If your home is leasehold, fill out the leasehold information form.
This covers service charges and management company details. Be thorough and truthful. Misrepresentations can cause delays or legal issues. Your conveyancing solicitor can assist with any complexities or uncertainties in these forms.
An estate agent's role in conveyancing
How estate agents facilitate the selling process
Estate agents play a big role in selling a house. Their expertise in property marketing and negotiation skills can significantly influence the sale's success.
Estate agents list the property, arrange viewings, and handle offers from buyers. Their knowledge of the local property market proves invaluable in setting a realistic selling price.
By liaising with buyers and their conveyancers, estate agents help maintain the momentum of the selling process.
Coordinating with your estate agent and conveyancing solicitor
Efficient coordination between the estate agent and the conveyancer ensures a streamlined selling process. The estate agent's role involves more than just finding a buyer. They also provide information to the conveyancing solicitor, such as the buyer's contact details and the agreed purchase price.
The conveyancing solicitor, on the other hand, handles the legal aspects, preparing the draft contract and dealing with any enquiries from the buyer's solicitor. This collaboration ensures that all legal and administrative requirements are met promptly, facilitating a smooth path to the exchange of contracts and, eventually, completion.
Handling offers and negotiations
Responding to offers: what sellers need to know
When an offer arrives, it's through your estate agent. These offers vary in purchase price and terms. Your estate agent acts as a mediator, conveying offers and responses between you and buyers. As a seller, evaluate each offer based on several factors:
Purchase price: is the offer near your asking price?
Buyer's position: are they part of a chain? Do they have a mortgage offer in place?
Special conditions: does the offer include unusual conditions or requests?
Through your estate agent, you should promptly respond to offers. This approach keeps the buyer engaged and signals your seriousness in the selling process.
Negotiation strategies for a better selling price
Negotiation is more art than science. It's a key skill in securing a favourable selling price. Here’s how you can approach it:
Market understanding: knowing the true market value of your property helps you set a benchmark for what offers to consider.
Realistic expectations: set a realistic price, but be prepared to negotiate.
Counteroffers: if an offer is below expectation, a counteroffer slightly above your minimum acceptable price can be a strategic move.
Communication: keep an open line of communication with buyers. This can include providing additional information about the property or being flexible in negotiations.
In every step, your conveyancing solicitor and estate agent are allies. They provide advice and handle legal complexities, allowing you to focus on the negotiation aspect.
From offer acceptance to exchange of contracts to completion
Buyer's conveyancing searches
Upon accepting an offer, the buyer's conveyancer initiates property searches. These include local authority, environmental, and drainage searches.
These searches reveal critical information about the property, influencing the buyer's decision. Sellers should anticipate queries or negotiations resulting from these findings.
Impact of conveyancing searches on the selling process
Conveyancing searches can impact timelines and negotiations. For example, if searches uncover planning permission issues, the buyer might renegotiate the price.
Sellers should proactively address issues like ensuring building regulations certificates are available to avoid delays.
Finalising the sale contract and setting a completion date
Drafting the sale contract is a collaborative effort between conveyancing solicitors. Key details like sale price, fixtures included, and completion date are agreed upon. The completion date is a crucial milestone, marking the transfer of property ownership.
Considerations when agreeing on a completion date
When agreeing on a completion date, factors like chain dependencies, mortgage lender timelines, and personal circumstances are considered. A realistic and mutually agreeable date ensures a smoother transition for both you and the buyer.
Exchange of contracts: making it legally binding
Exchanging contracts is the moment in property sales when both parties are legally committed to the transaction. After this, neither can withdraw without financial consequences. It marks the commitment to complete the sale.
Preparing for the exchange: seller's checklist
Preparation for contract exchange includes finalising the contract, ensuring all paperwork is complete, and liaising with your conveyancing solicitor. Sellers should confirm mortgage redemption figures and prepare for the transfer of funds. Resolve any outstanding issues before this stage.
Completion: the final stage in the conveyancing process
Completion day marks the end of the conveyancing journey when ownership transfers from you, the seller, to the buyer. This day is pre-arranged during the exchange of contracts. It involves the conveyancing team coordinating with various parties to ensure the smooth transfer of funds and legal titles.
What happens on the day of completion?
On completion day, your conveyancing team plays a central role. They ensure that all financial transactions, including settling the outstanding mortgage balance with your mortgage lender, occur seamlessly.
Your conveyancing team liaises with the buyer's solicitor, confirming the receipt of the buyer's funds. Once the funds are received, they notify your estate agent to release the keys to the new owner, signifying the formal transfer of possession.
Post-completion formalities and obligations
After completion, there are still a few formalities to attend to. Your conveyancing team will send you a completion statement, detailing all the financial transactions and legal costs incurred. They also handle the legal paperwork to remove your name from the land registry, ensuring the buyer's solicitor can register the new owner.
After the sale: post-completion considerations
Handling outstanding mortgage and financial settlements
After selling your house, addressing the outstanding mortgage balance with your mortgage company is necessary. Your conveyancing team assists in calculating the exact amount due and ensures its timely payment from the sale proceeds.
They also prepare a sale completion statement, providing a clear breakdown of the financial transactions, including the repayment of any mortgage loan.
Notifying relevant parties and transferring utilities
Once the sale is complete, inform all relevant parties. This includes utility providers, local council, and insurance companies. Your conveyancing firm can offer advice on this process, ensuring a smooth transition for both you and the buyer.
It's also necessary to cancel or transfer your buildings insurance, as responsibility shifts to the buyer on completion day.
Tips for smooth sailing on completion day
Make completion day less stressful by:
- Ensuring you have signed all paperwork and returned it by hand or next day signed-for delivery.
- Preparing and labelling keys, leaving them with the agent for the vendor to pick up – you don't want them hassling you to get into your home if you haven’t completed.
- Packing your belongings a few days beforehand, so you don’t have to rush on the day before or move out early if possible.
- Arranging for completion to take place on a day other than Friday, allowing time to resolve any issues that may arise without waiting until Monday.
- Having a list of all the contacts you need: broker/lender, legal company, agent, and removal firm.
- Taking a picture of the gas, electricity, and water meters, or having them read just beforehand.
- Keeping cleaning supplies ready for your old and new home or hiring cleaners.
- Having a place to stay overnight in case you can’t move into your new home for any reason.
- Ensuring pets and kids are with someone else on the day – it’s too stressful for them (and you) to look after them while moving.
- Checking that your legal company has received the balance payment from the buyer the day before completion.