Preliminary Matters (Stage 1)

Question 1

What should the Buyer’s Solicitor’s first steps be once a conveyancing transaction has been agreed?

Answer 1

In relation to the client:
- Gather all essential information on the matter
- Client Care letter (level of service + costs)
- Get client’s ID documents
- Due diligence checks (i.e., AML checks)

In relation to the property:
- Advise the buyer to have a surveyor carry out a physical inspection of the property.

Question 2

Who pays the capital gains tax due, if any?

Answer 2

The seller, and they must submit a tax return to HMRC within 60 days of the completion date.

NOT required if no CGT payable?

Question 3

Who pays the CGT in residential transactions?

Answer 3

Usually, nobody, because of the Principal Private Residence Relief exemption.

Question 4

If the Buyer’s Solicitor is acting for both the Buyer and the Lender in a transaction, what happens with the duty of confidentiality?

Answer 4

The solicitor can ONLY tell the lender about issues effecting the property/other material issues to the lender if they have consent of the buyer.

If the buyer does not want the solicitor to disclose it, solicitor must stop acting for lender.

Question 5

What is the Law Society Conveyancing Protocol

Answer 5

Statement of best practice for residential conveyancing (step-by-step guide).

NOT SUITABLE FOR: New build homes or commercial property.