Conveyancing is an essential part of a house sale.
And what conveyancer you choose can significantly impact how smoothly it goes.
But what exactly is a conveyancing? How does it fit into the broader house-selling process? And how much does it cost?
Read on to find out.
Conveyancing: Definition
Conveyancing refers to the legal transfer of property ownership from a person(/s) to another.
Both the buyer and seller will typically use this service to help them with the sale.
Each party can do this themselves by getting the relevant paperwork from legal stationers. However, in practice, most people use a conveyancer or – more commonly – a solicitor.
(The same professional can represent both parties – but this is rare).
Property ownership type and conveyancing
Property ownership types influence the conveyancing process. In the UK, the two main types are:
- Freehold: Owners own the building and land underneath it
- Leasehold: Owners have the right to live in and use a property for a fixed period (usually hundreds of years).
(There are less common types, too. For example, commonhold, where residents have individual ownership of their own property and share ownership of common areas. And share of freehold, where all residents collectively own a freehold.)
Conveyancing across the UK
There are notable differences in conveyancing across the UK.
England and Wales follow the same legal system for it, and Northern Ireland’s is separate but similar (with different Stamp Duty rates. Scotland, on the other hand, has separate legal agreements, property taxes, and timing for binding contracts.
Conveyancing process
1. Pre-contract enquiries
Conveyancers (or solicitors) representing the buyer contact the property seller for information. They establish whether or not there are any:
- Property boundary disputes with neighbours
- Easements or covenants on the property
- Outstanding issues with the freehold
- Fixtures or fittings information relevant to the buyer.
And more.
Registered land vs unregistered land
Whether a property is registered or not with the Land Registry needs to be established early on.
Conveyancing for registered land (known as a registered title) involves transferring the land from the old owner (proprietor) to the new one.
The whole process, known as a dealing, is relatively simple. The former proprietor simply needs to show proof of registration (with a Land Certificate) to their local Land Registry, who electronically store its title number.
Conveyancing for unregistered land is slightly more complicated. It requires conveyancers to establish proof of ownership to the land registry, which itself involves finding evidence of this ownership.
2. Local land searches
All district councils across the UK (including London Borough Councils) must maintain a Local Land Charges Registry.
These record information on financial charges related to work carried out by the local authority (or statutory bodies) on land and restrictions on land usage.
Searches through this registry can be carried out privately, i.e., by individuals paying the local authority a fee to search its records. However, most people opt for an official search, carried out by an employee at the Registry.
3. Enquiries with local authority
Local authority enquiries involve checking a range of potential issues related to planning permission for previous alterations and additions to a property.
This could potentially uncover several findings, for example:
- Breaches of local laws (including pre-existing enforcement notices)
- A property’s listed status
- Conservation orders for local wildlife or trees.
And much more.
4. Index map search
This is a service HM Land Registry provides to determine whether land is registered and what it’s unique title number us.
Conveyancing costs
A typical conveyancer in the UK will cost between £1,250 and £1,500.
The final figure will be influenced by location, a deal’s complexity, the company hired, and other factors.
Other scenarios’ costs
‘PropertySolvers.co.uk’ calculated that the average conveyancer costs between £1,187 and £1,265 (inclusive of VAT) for a freehold tenured property sale and purchase.
Meanwhile, CompareTheMarket suggests that selling a house costs around £1,690, but the fees could be slightly higher when buying.
Disbursements
Disbursements (additional legal costs) are included in the averages listed above.
A conveyancer pays them on behalf of their clients.
Common examples of disbursements include:
- Land Registry Fees
- The various searches needed for buying a house
- Money Transfer Fees
These costs can vary for each house sale and add several hundred pounds to a final bill.
Paying a conveyancer if the deal falls through
In almost all cases, conveyancers still have to be paid even if a house sale falls through. The amount paid will depend on how much work the conveyancer/solicitor has completed.
Varying conveyancer costs
Yes, as with all professionals in all industries, some conveyancing companies and individuals will be less expensive than others.
Some may provide a premium service, while others may charge less if they have fewer qualifications or specialise in low-price transactions.
Conveyancing time frame
The conveyancing process usually takes between 12 – 16 weeks. This covers house offer acceptance through to completion.
Of course, delay can happen due to unexpected findings in the searches or a survey that reveals problems.
Causes of conveyancing delays
Your conveyancers’ backlog
First of all, some professionals have a long backlog of clients/cases, so it may take them longer to get things sorted for you.
It would help if you spoke to the person or company about their:
- Current availability
- How long they expect the process to take
- What their fee is.
And more.
Missing information
Your conveyancer will also wait for specific information to be provided to them before they begin the work.
Providing proof of your identity or transferring funds to your conveyancer may be required up-front. If so, you should be ready to complete these steps quickly so work can begin.
Similarly, completing documents incorrectly may cause them to be returned and re-done, so make sure you follow all instructions, too.
Mortgage complications
Plenty of complications are involved with the transaction itself that may slow things down, too.
For example, suppose a mortgage offer expires before the exchange of contracts.
In that case, this will force the entire mortgage application process to be restarted.
Property chain issues
In some instances, the delays may be the fault of other conveyancers in the property chain.
As many property experts say, ‘the chain can only move as fast as the slowest link’.
So, if there are delays elsewhere in the chain, your conveyancer may be restricted regarding what they can do, too.
Conveyancer is waiting for information
Your conveyancer may also encounter specific challenges when completing searches on a potential property. The house can only be inspected when the seller permits it.
Your conveyancer may have to wait several days/weeks to hear back from the council or other local bodies regarding important information about your deal.
How conveyancing delays can effect sales
Delays in the conveyancing process may increase the cost of selling your house.
Plenty of legal firms charge by the hour. So, if specific steps need to be repeated, then this will increase your fees.
Since conveyancing typically represents one of the most significant costs associated with a sale (with prices usually being in the thousands), this can have a substantial impact on the profitability of your transaction.
In some cases, conveyancing delays may cause the house sale to fall through.
Claiming money back on conveyancing delays
Depending on the circumstances, you may be able to claim back any extra costs associated with your conveyancing delays.
Home Buyer’s Protection Insurance
Home Buyer’s Protection Insurance may enable you to get some of this money back.
And if the deal falling through has been caused by ‘professional negligence’, then you may have a case against the conveyancing firm, too.
You are getting input from an expert in this, which is always a smart idea.
Claims against other parties
Sometimes, if the fault of delays or the sale falling through is the other parties, then you can claim against them. You should seek legal advice before you proceed.
Remember that conveyancing costs usually depend on how far along your deal’s house-selling process is.
Your conveyancer sometimes may not charge you if the transaction falls through – it just depends on the circumstances.
Tips for reducing conveyancing delays
Have paperwork to hand
Firstly, getting all your paperwork in order as soon as possible (in an ideal world, before you contact the conveyancer in the first place) will speed things along.
Communication matters
Maintaining clear and consistent communication with all parties will make a difference, too.
You can keep following up with your conveyancer to ensure you stay at the top of their priority list. And you (or your conveyancer) can also maintain a line of communication with the other people in the chain to keep everyone on the same page.
Do your research
Researching before you choose your conveyancer is a brilliant idea, too. Some companies have a reputation for being fast, while others may be known for inefficient delays.
Ask your friends and family for recommendations or look closely at online reviews to find the right choice.
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