Overview of the conveyancing process

Question 1

True or false;
Once a buyer has been found and the price agreed upon, the first step of the conveyancing process is complete and a legally binding relationship is formed

Answer 1

False
The conveyancing process begins after the price is agreed.
A legally binding relationship has not been established yet

Question 2

What are the 7 steps of the conveyancing process?

Answer 2

1. Marketing the property
2. Taking instructions
3. Pre-Contract stage
4. Exchange of contracts
5. Pre-completion steps
6. Completion
7. Post-completion admin

Question 3

What occurs during step 1 of the conveyancing process?

Answer 3

Marketing the property - the seller looks for a buyer, finds a buyer and agrees on a price

Question 4

What occurs during step 2 of the conveyancing process?

Answer 4

Taking instructions - the solicitor takes the clients instructions and verifies the client’s identity (this MUST be mentioned in answer, very important process) to comply with anti-money laundering regulations

Question 5

What are the 2 steps needed to complete the pre-contract stage of the conveyancing process?

Answer 5

1. The buyer and seller’s solicitor investigate title
2. They buyer’s solicitor conducts searches

Question 6

How is title, in regard to registered land, investigated?

Answer 6

By reviewing documents from the Land Registry.

Question 7

In a property transaction, what is actually being sold?

Answer 7

The title to the land

Question 8

When investigating title, which documents are primarily examined?

Answer 8

Register of Title and Title Plan

Question 9

Why is it important that a buyer’s solicitor investigates title?

Answer 9

1. So that the seller is able to transfer what they are contracting (because the contract hasn’t been made yet) to sell
2. To identify any problems with the land that could ADVERSELY AFFECT THE INTERESTS OF THE BUYER, of which if there are any, the client must be advised on

Question 10

What maxim applies to conveyancing and what does it mean?

Answer 10

Caveat Emptor - “let the buyer beware”
This means that the responsibility is with the buyer to discover all of the info that they need to decide on the purchase.

Question 11

What happens if a buyer discovers that there are issues with the property after completion?

Answer 11

Nothing. Following the maxim caveat emptor, if the buyer could have discovered these issues before completion, even if the seller knew of them and said nothing, then the buyer will not be able to do anything about it.

Question 12

Is the seller subject to any obligations?

Answer 12

Only 1 - to honestly disclose information that they are asked for by the buyer.

Question 13

Why does the seller’s solicitor investigate the property?

Answer 13

In order to accurately reflect the property that the seller is selling in the contract of sale, as the seller’s solicitor is the one that prepares this contract

Question 14

What is a certificate of title?

Answer 14

A report on the property made by a solicitor to give to the buyer’s lender (e.g. the bank) so that they do not need to conduct their own investigation

Question 15

Once the investigation of title has concluded, what happens next?

Answer 15

The solicitor, and potentially the buyer themself, will conduct searches in order to discover as much info as possible and subsequently protect the buyer

Question 16

What occurs during step 4 of the conveyancing process?

Answer 16

The exchange of contracts, in which the parties sign identical contracts.

Question 17

When does a binding contract arise in the conveyancing process?

Answer 17

Once the buyer and seller exchange signed identical contracts.

Question 18

What occurs during step 5 of the conveyancing process? (HINT: there are 7 steps)

Answer 18

Drafting the Transfer Deed

Sending a Request for Completion Information to the seller

Engrossing and Executing the Transfer Deed

Making Pre-Completion searches

Ensuring the buyer’s solicitor is in funds

Preparing any undertakings necessary on completion

Addressing various practical issues

Question 19

What occurs during step 6 of the conveyancing process?

Answer 19

Completion

Question 20

What is completion?

Answer 20

It is when the legal title passes to the buyer

Question 21

When does completion occur in unregistered and registered land?

Answer 21

For unregistered land - when the title passes to the buyer

For registered land - Once the buyer is registered at HM Land Registry, upon which the title will pass to the buyer

Question 22

What occurs in step 7 of the conveyancing process?

Answer 22

The post-completion Admin

Question 23

What must the seller’s solicitor do during the post-completion admin stage?

Answer 23

Discharge the seller’s mortgage on receipt of completion monies

Send any remaining proceeds of sale to their client

Send the bill to the client

Question 24

What must the buyer’s solicitor do during the post-completion admin stage?

Answer 24

Pay Stamp Duty Land Tax

Complete the Mortgage Deed

Account for any bridging finance

Register the buyer as the legal owner with the Land registry

Once registered, check the Register
Entries by confirming that the Title
Information Document received from the Land Registry is correct

Register the Mortgage at Companies
House

Send the bill to the client