This week is National Conveyancing Week, and so we wanted to take the opportunity to show exactly what goes into the conveyancing process. We spoke to Stefanie Kohler from the residential conveyancing team at Switalskis Solicitors. Stefanie has over 20 years’ experience in residential conveyancing and qualified as a licensed conveyancer in 2013. 

Stefanie has worked at Switalskis for two and a half years. She deals with freehold and leasehold sales and purchases, new build purchases, auction, sales and purchases, remortgages, transfers of equity, and equity release mortgages. Stefanie is part of the conveyancing department management team, and  assists in training junior members of the conveyancing team in Sheffield.

Stefanie said: “I began studying to become a licensed conveyancer whilst working full time by distance learning.  I also attended college once a week throughout the course. At the time of studying, there was a seven-year time window in which to qualify. When studying to become a licensed conveyancer, you learn all aspects of property law. Once qualified, you are classed as a specialist property lawyer. This differs from the training to be a solicitor, as they have to learn all aspects of law and then choose their preferred legal specialism.”

Many clients don’t see the complexity involved in conveyancing transactions, or why the process takes time to finalise. The job of a conveyancer is by no means straightforward. It requires knowledge of ever-changing laws and regulations, as well as good personal skills to help clients through the process.

During the house buying process, a number of steps must be taken to complete the purchase, including:

1. Checking the client’s identification and how they are funding the purchase. This also means requesting any additional documentation regarding the source of funds and additional wealth. If the clients are receiving a gift from a third party, we need to contact that party regarding the gift. We also check the third party identities and source of the gift fund.
   
   
2. Once the contract documentation has been received from the seller’s solicitors, this is reviewed in detail. The title to the property is perused, including any deeds referred to within it.  We are checking that it includes all of the necessary rights required for our client to enjoy the property to its fullest. We also check  if there are  rights reserved over the property for the benefit of other properties.
   
   We  need to pay particular attention to any restrictive covenants affecting the property, and if these covenants have been breached. For example, this may apply if the property has been extended. However there may be  a covenant in the title stating that you cannot extend the property. In other cases it may be that you  can only extend  with consent of the party that benefits from the covenants.
   
   At this stage, a conveyancer will also review the fittings and contents and property information forms completed by the seller. The property information form contains details relating to boundary maintenance, and building works done to the property, including new windows, doors, boiler renovations or electrical works. You need to check that any such alterations have the required planning permissions, building regulations approvals and competent persons certificates.
   
   Once a review has been completed, copies of the title and forms are provided to the client. This includes a detailed report regarding the title to make them aware of the contents and any matters affecting the property.
   
   Enquiries are then raised with the seller’s solicitors on any issues regarding the title, or the information contained in the forms completed by the seller.
   
   
3. Once received, we  review the search results on the property, which can reveal if alterations or installations have the necessary permissions/certificates.  It will highlight if there are any matters affecting the property. Issues may arise, for example, if it is in a conservation area; if the road is adopted; if there are any past subsidence claims affecting the property; or if it is connected to the public sewer for foul and surface water drainage.
   
   Copies of all searches are then provided to the client, with a report detailing any matters revealed that need to be brought to their attention.
   Search results may lead to additional enquiries being raised with the seller’s solicitors on any issues that have been revealed.
   
   Once the mortgage offer is received, this needs to be thoroughly checked. This ensures that all details relating to the client, the property and purchase price are correct. It also means that any special conditions contained within it are properly addressed. A mortgage report is then provided to the client detailing the terms of the mortgage offer.
   
   Many clients are unaware that when they purchase with a mortgage, this means the lender is also our client. We must make the lender aware of any title issues, alterations to the property, or matters revealed in the search results that may affect the value of the property and their offer.
   
   
4. Regular updates must be made to estate agents and mortgage brokers so they know what stage of the transaction we are at.
   
   
5. Updates to clients are essential to manage their expectations. Clients very often want to discuss completion dates and timescales at the outset of a transaction. This isn’t recommended as we cannot proceed until we have received the search results, mortgage offer (if applicable) and satisfactory replies to enquiries from the seller’s solicitors. Discussing dates prematurely often leads to disappointment and causes upset for clients at what is already a stressful time.
   
   
6. Once replies to enquiries have been received from the seller’s solicitors, these need to be thoroughly checked. We make sure that everything has been answered satisfactorily, and that all relevant documentation has been provided.
   
   If everything is in order, a full report is provided to the client. If they are happy to proceed, a completion date is discussed, and the agreement of the seller obtained via their solicitors. Agreeing a completion date can take time, especially when the purchase is part of a chain of transactions.
   At this stage, clients will be asked to sign the legal documentation in readiness and provide their deposit monies.
   
   
7. Once the completion date has been agreed by all parties, we can then proceed to exchange of contracts. At this point the completion date will become legally binding.
   
   
8. In readiness for completion, we need to request mortgage monies from the lender and the balance completion monies from the client. We also undertake final searches, including bankruptcy searches on the client (as required by the lender).
   
   
9. On the day of completion, we arrange the transfer of  completion monies to the seller’s solicitors and clients obtain thee keys to their new home.
   
   
10. Once completion has happened, we then arrange for the submission of the stamp duty land tax return and payment of any stamp duty.
    
    
11. Finally, we make an application to the Land Registry to register the client’s ownership and legal charge (if applicable).
    
    
    This is a breakdown of a standard residential purchase. However, purchases can be more complex, especially leasehold flats, as much more information is required and needs to be reviewed. There may also be factors such as help-to-buy ISAs/LISAs to deal with, or additional requirements from management companies or landlords to handle.