Guide to Conveyancing
2. Exchange of contracts
3. Between exchange and completion
4. Completion
5. After completion
• which fixtures and fittings, like carpets and curtains, are included in the sale.
• how much the property is being sold for.
• any legal restrictions or rights on the property, like any public footpaths or rules about use of the property.
• any planning restrictions in place.
• a description of the services to the property, e.g. drainage and gas.
• the date for completing the purchase (called ‘completion’).
• checking the ‘title’ – the legal document that proves the seller’s ownership.
• asking the local authority about any planned works like roadworks or new developments that might affect the property.
• enquiries to the seller’s solicitor or licensed conveyancer about the details of the contract.
Your solicitor or conveyancer may need to carry out additional searches depending on the type of property involved.
Getting home insurance for the property
You will also need to consider insurance cover for the property – you will usually be responsible for insuring the property as soon as contracts are exchanged.
Getting a property survey
You should also get a property survey before the exchange of contracts, to uncover any problems with the building like dry rot. To find out about the different types of survey see our Survey page • Property surveys
If you are using a mortgage to buy your property, you will need a formal mortgage offer from your lender before you sign the contract. The lender will send documents for you or your solicitor or conveyancer to sign. To find out more about mortgages, contact our colleagues at Melton Financial Services for independent impartial advice.• Mortgages
When the buyer and seller are happy with its contents, they sign final copies of the contract and send them to each other. This is called the exchange of contracts. Once contracts are exchanged, the agreement to sell and buy is legally binding and usually neither party can pull out without paying compensation. Buyers will usually pay the seller a deposit (usually 10 per cent of the purchase price of the property) at the exchange of contracts stage.
In many cases, there are a few further checks to be done at this stage.
• prepare the legal documents to transfer ownership.
• check mortgage documents.
• make sure that they have all the necessary funds – which may include payment of their own fees.
• arrange for the transfer of funds to the seller.
• do final Land Registry checks.
• check all agreed tasks set out in the contract have been carried out, such as agreed repairs etc.
• check that fixtures and fittings have been left as agreed
Once all matters between exchange and completion have been dealt with, the money for the property is transferred from buyer to seller. The sale is now completed and the keys are handed over. The property now belongs to the buyer.
• receive the keys to the property on the agreed date.
• pay the seller the remainder of the cost of the property through your solicitor or licensed conveyancer.
• receive the legal documents that prove ownership of the property.
• pay your solicitor’s or licensed conveyancer’s fees.
At this stage you or your solicitor will need to:
• pay Stamp Duty Land Tax (Stamp Duty).
• tell your insurers that completion has taken place.
