What Is The Conveyancing Process?
Conveyancing in legal terms is transfer of legal title of land from an individual to another or granting of encumbrance like a lien or mortgage. Conveyancing transactions usually have two major landmarks which are exchange of contracts-equitable title passes- and completion whereby the legal title passes. Conveyancing takes 3 stages. The first is before a contract, second is before the completion and third stage is after completion.
Buyers of real property should ensure that they obtain good and marketable 'titles' to their land. Buyers should ensure that the seller is either an owner of the property or has right to sell it without any factor that impedes re-sale or obtaining a mortgage. Conveyancing system is designed to ensure that buyers secure title to land together with all rights running with the property and are notified in advance about any restrictions.
Conveyancing in many mature jurisdictions is facilitated by land registration system designed to encourage reliability on public records and guarantee land purchasers of good titles. Public record systems have a background in France.
English law does not consider agreements to be legally binding until exchange of contracts. This provides the advantage of freedom before the contract. The disadvantage is wasted time and expense if there is no deal. The common practice is for buyers to negotiate an agreed price with sellers before organizing a survey. They also have a conveyance or solicitor to carry out pre-contract
enquiry and searches. The solicitor hired by the seller prepares draft contract that will be handed over to buyer's solicitor for approval.
Seller's solicitor also collects and prepares property information that will be availed to buyer’s solicitor in line with Conveyancing regulations at the place.
Conveyancing transactions usually take an average of 10-12 weeks. The time varies from one transaction to another depending on legal, financial, social and legal factors. If the offers are acceptable, a property seller has responsibility to draw up legal contract in order to transfer ownership.
The contract contains the following details:
• Selling price
• Property boundaries
• Fittings and fixtures such as kitchen units and carpets included in the sale
• Rights like public paths, any legal restrictions and rules about property usage.
• Services to property like gas and drainage
• Planning restrictions
• The time when the sale will be completed
If a seller has a hired a conveyancer or solicitor for conveyancing process, they will:
• Draft initial contract
• Answer questions(with help from the seller) from solicitor or conveyance of the buyers
• Negotiate contract details if it is necessary
If the contract is acceptable to the seller and buyer, both sides sign the final copies then send them to one another.
Once this process of Conveyancing takes place, the agreement is legally binding. None of the parties can pull out at this point without paying compensation.
The process is completed when the buyer transfers money to the seller and the buyer hands over all legal documents required to transfer ownership.