Conveyancing is the process of transferring property ownership from one party to another. This is a legal procedure. It can indeed be lengthy and complicated due to the necessary documentation or paperwork.
A solicitor is required to handle the task of conveyancing. He makes the process way easier and less complicated through his expertise.
This process of conveyancing includes contract formation, financing, and transferring ownership of property. Below are the detailed steps and procedure involved in the process of conveyancing.
1. Pre-Conveyancing Phase
In this phase, initial preparations are made. Sellers advertise their property and find a suitable buyer. An informal settlement happens between seller and buyer.
After this, the most crucial thing starts. It is finding a reputable solicitor for handling and managing the legal aspects of transferring of property. For this purpose, you need to find a renowned company or firm to hire an expert solicitor for conveyancing.
It is advisable to hire a legal expert from a firm that offers low and fixed rates, ensuring they don’t increase the rates amid the process.
2. Contract Drafting
The second stage is contract drafting. Solicitor role is pivotal in it. Seller party hired a legal expert to form a contract draft by mentioning the details of property, selling rate, and other necessary terms.
On the other hand, buyers’ legal representatives overview the property details. He ensures that there are no issues or disputes over the property. After carefully reviewing, he forms a contract draft from the buyer side.
3. Contract Discussion
In this step, both the parties and their legal representatives sit at a table. A detailed overview and discussion happen in this phase. After the deliberation, terms and conditions are finalized. A detailed contract on agreed terms is formulated.
4. Funds/Capital Arrangement
After the formation of a final contract, necessary financial arrangements are made. A buyer arranges the finances or mortgage to ensure the smooth flow of transaction of money to the seller
Whereas, in case of any mortgage on the property, the seller arranges the capital to pay it back before transferring the property to the buyer.
5. Contract Signing and Exchange
After finalizing the financial arrangements, both parties review each detail of the contract. In the presence of legal experts, both parties show their commitment to the contract. Finally, the contract is signed and exchanged between both parties.
The buyer gives a partial payment as a token to show his commitment. Both parties are then legally bound to do their bit, and preparations for a transfer of ownership and complete payment simultaneously.
6. Post-Conveyancing Phase
This is the last and final phase in the process of conveyancing. Complete payment is transferred in it. Then, the seller solicitor completes the documentation and transfers the property to the buyer. In the end, all the documents related to the property are also transferred.
At this point, the conveyancing cycle/process is concluded. Both parties can consider the deal is close now. The buyer owns the property and can move in at any time. The property officially belongs to the buyer now.