Residential Conveyancing

Buying a property or selling a property can seem like a complicated and lengthy process, it’s easiest to look at it in three sections – pre-exchange, exchange and completion.

PRE-EXCHANGE

Pre-exchange is a thorough investigation of the property you are buying. This investigation means you know exactly what you are buying and also makes sure the seller is legally able to sell the property. Your solicitor carries out this investigation; called the ‘pre-contract investigation’.

The pre-contract investigation involves an investigation of the legal title – confirmation that the seller can legally sell the property, and investigation into any rules and obligations imposed on the land (known as ‘covenants’), as well as any rights that benefit the property. A full review of the Property Information and Fittings and Contents forms, and any supprting documents received from the seller, is also undertaken. The information includes:

• details of how the boundaries are maintained
• details of any neighbour disputes
• enquiries of the local authority and various utility companies, known as ‘searches’
• a topline report on any mortgage offer details of items included in the sale price
• details of works carried out the property with the knowledge of the seller

EXCHANGE

Exchange of contracts is one of the most important stages in the process of buying or selling a home. It is the point at which the transaction becomes legally binding and both the buyer and seller commit to completing the deal.

What is Exchange of Contracts?

Exchange of contracts occurs when the buyer’s solicitor and the seller’s solicitor formally exchange signed contracts on behalf of their clients.

At this stage:

• The buyer agrees to purchase the property
• The seller agrees to sell the property
• A fixed completion date is agreed
• The buyer pays the contract deposit

Once exchange has taken place, the agreement becomes legally binding. This means both parties are required to complete the transaction on the agreed date.

Before this stage, either side can withdraw from the transaction without legal penalty. After exchange, however, there are legal consequences if either party fails to complete.

Legal Work Before Exchange

Before contracts can be exchanged, the conveyancing process must reach the point where both solicitors are satisfied that all legal matters have been properly addressed.

For buyers, this means their property purchase solicitor will have completed a number of important checks.

These usually include reviewing the title to the property, examining the contract pack prepared by the seller’s solicitor and raising any necessary enquiries.

Property searches are also carried out during this stage. These commonly include local authority searches, drainage searches and environmental searches, which help identify any legal or environmental issues affecting the property.

If the buyer is obtaining a mortgage, the mortgage offer must also be received and reviewed by the buyer’s solicitor before exchange can take place.

Report on Title

Once all searches and enquiries are complete, the buyer’s conveyancing solicitor prepares a report on title.

This report explains the legal position of the property, summarises any important issues discovered during the investigation process and confirms the terms of the contract.

Buyers are then asked to sign the contract and confirm that they are happy to proceed to exchange.

For many clients, this stage is where they receive clear and practical legal advice about the property before making a final commitment.

Paying the Deposit

At exchange of contracts, the buyer usually pays a deposit to the seller’s solicitor.

This deposit is typically 10 percent of the purchase price, although in some cases a reduced deposit may be agreed where the buyer is part of a property chain.

The deposit forms part of the purchase price and is transferred to the seller’s solicitor at the point of exchange.

Agreeing the Completion Date

Exchange of contracts also confirms the completion date.

Completion usually takes place between one and two weeks after exchange, although the timing can vary depending on the circumstances of the transaction and the length of the property chain.

Having a fixed completion date allows buyers and sellers to finalise moving arrangements and prepare for the transfer of ownership.

Exchange in a Property Chain

Many residential conveyancing transactions form part of a property chain involving several linked sales and purchases.

In these situations, exchange of contracts normally takes place simultaneously across the entire chain.

Each solicitor confirms with the others that their clients are ready to exchange, and the contracts are then exchanged at the same time.

This coordinated approach helps ensure that all transactions proceed together and reduces the risk of the chain collapsing.

What Happens After Exchange?

Once contracts have been exchanged, the transaction moves towards completion.

Your conveyancing solicitor will begin preparing for completion day by arranging for funds to be transferred and carrying out final checks.

If you are buying with a mortgage, your solicitor will request the mortgage advance from the lender so that the funds are available in time for completion.

Final Land Registry searches will also be carried out before the completion date.

Why Exchange is Such an Important Stage

Exchange of contracts is often seen as the point where a property transaction becomes certain.

For buyers, it provides the reassurance that the property is secured and cannot be sold to another party. For sellers, it confirms that the buyer is legally committed to completing the purchase.

Because of the legal consequences involved, exchange of contracts should only take place once all legal investigations and property finance arrangements are fully in place.

COMPLETION

Completion day is the point at which a property transaction is finalised and ownership legally transfers from the seller to the buyer. It is the stage many buyers and sellers look forward to most, as it is when the purchase price is paid, the keys are released and the buyer can move into their new home.

Although completion itself takes place on a single day, it is the result of weeks of preparation during the residential conveyancing process. If you are buying or selling a property in Teddington, understanding what happens on completion day can help you plan your move and avoid unnecessary stress.

At Wilson Law, our residential conveyancing solicitors guide clients through every stage of a property transaction, from the early legal steps through to completion and post-completion registration.

What Happens Before Completion Day

Before completion can take place, several important stages of the legal process of buying or selling a house must already be completed.

Contracts will have been exchanged, making the transaction legally binding. At this stage, a fixed completion date is agreed between all parties involved in the transaction.

In the days leading up to completion, your conveyancing solicitor prepares the legal and financial arrangements required for the transfer of ownership.

This typically includes requesting mortgage funds from the lender, carrying out final Land Registry searches and preparing a completion statement that sets out the balance required to complete the purchase.

Buyers must ensure that any remaining funds are transferred to their property purchase solicitor in advance so that the money is available on the day of completion.

The Completion Day Process

On the morning of completion day, the buyer’s solicitor sends the purchase funds to the seller’s solicitor by bank transfer. These funds usually consist of the mortgage advance together with the balance of the purchase price provided by the buyer.

Once the seller’s solicitor receives the funds and confirms they have cleared, the completion day process is formally finalised and legal ownership of the property transfers to the buyer.

At this point, the estate agent is authorised to release the keys to the buyer.

For buyers, this is the moment they can collect the keys and move into their new property.

Release of the Keys

In most transactions, keys are collected from the estate agent once confirmation of completion has been received.

If you are buying a property in Teddington, the estate agent will normally hold the keys and release them as soon as the solicitors confirm that completion has taken place.

The timing can vary slightly depending on the movement of funds between solicitors and the number of transactions involved in the chain.

Completion in a Property Chain

Many residential property transactions form part of a property chain, where several buyers and sellers are linked together.

On completion day, funds pass from one transaction to the next along the chain. For example, the proceeds from one sale may be used to fund the next purchase.

Because of this, completion times can vary during the day depending on when funds arrive and are transferred between solicitors.

Your conveyancing solicitor will keep you informed and confirm as soon as completion has taken place.

What Sellers Should do on Completion Day

If you are selling a property, you should ensure the property is fully vacated by the time completion takes place unless a different arrangement has been agreed in the contract.

This means removing personal belongings and leaving the property in the condition agreed with the buyer.

Sellers usually provide their keys to the estate agent before completion so they can be released once the sale is finalised.

What Happens After Completion

Although completion marks the legal transfer of ownership, several important post-completion steps still need to be carried out.

Your residential conveyancing solicitor will deal with these legal formalities on your behalf.

This includes submitting the Stamp Duty Land Tax return if applicable and arranging registration of the property at HM Land Registry.

Land Registry registration updates the legal title so that you are officially recorded as the new owner of the property. If you have a mortgage, the lender’s legal charge will also be registered.

These post-completion steps form an essential part of the overall residential conveyancing services provided by your solicitor.

How Long Completion Day Takes

Completion usually takes place sometime between late morning and mid-afternoon.

The exact timing depends on a number of factors, including the number of transactions in the property chain and the speed at which funds move between solicitors.

While the legal work is carefully planned in advance, completion times can vary slightly during the day, particularly where longer property chains are involved.

Planning for Completion Day

Good preparation can help ensure completion day runs smoothly.

Buyers and sellers should make sure removal arrangements are confirmed in advance and allow flexibility in case completion takes place slightly later than expected.

It is also important to ensure that funds have been transferred to your solicitor ahead of time and that you remain contactable in case your solicitor needs to reach you during the day.

Your solicitor will confirm once completion has taken place so that you can proceed with your moving arrangements.

The deposit is a part-payment of the purchase price and is paid on exchange of contracts. It is a forfeitable bond – if you don’t complete (move) on the agreed date, you can lose your deposit.

The deposit is traditionally 10% of the purchase price, although in some cases a reduced deposit may be agreed where the buyer is part of a property chain. Occasionally a 5% deposit may be accepted.  If you pay a 5% deposit and then default on the purchase, you must pay the remaining 5% of the deposit immediately.  If you are buying and selling you must fund the difference between the 5% deposit you receive and the 5% deposit payable on your new property.

The deposit forms part of the purchase price and is transferred to the seller’s solicitor at the point of exchange.

We always and strongly recommend you request a full structural property survey before buying a property – surveys highlight potential issues with the property you are considering and mean you are fully informed about your potential investment. It is also important to note that the seller is not obliged to answer any questions relating to the physical aspects of the property. The survey results may highlight defects with the property you wish to buy. In this case, you can choose not to purchase the property or to renegotiate the price to account for the cost of repairing these defects. Any renegotiation must be disclosed to your mortgage lender; we are duty bound to do this as we act for the mortgage lender as well.

There are three levels of survey, and the appropriate option will depend on the age, condition and type of property you are purchasing.

Condition Report (Level 1)

This is the most basic type of survey and provides a general overview of the property’s condition. It highlights any urgent defects or significant issues but does not go into detail or provide advice on repairs.
This type of survey is typically suited to newer properties or those that appear to be in good condition.

HomeBuyer Report (Level 2)

A HomeBuyer Report is more detailed and is the most commonly chosen option for standard residential properties.
It includes an assessment of the condition of the property, identification of any visible defects, and advice on necessary repairs and ongoing maintenance. A market valuation may also be included if requested.
This survey is suitable for most conventional properties that are in reasonable condition.

Building Survey (Level 3)

A Building Survey is the most comprehensive and detailed inspection available. It provides an in-depth analysis of the structure and condition of the property, including potential hidden defects.
It is particularly recommended for older properties, properties that have been significantly altered or extended, and those in poorer condition. The report will include detailed findings and advice on repair options and likely costs.

Choosing the Right Survey

Selecting the appropriate survey is an important decision and will depend on the property you are purchasing and your appetite for risk.
A survey provides valuable information that can help you make an informed decision and avoid unexpected costs after completion.

How We Can Help
While we do not carry out surveys, we work closely with surveyors and can guide you on the appropriate type of survey for your transaction.
If your survey reveals any issues, we can advise on the legal implications and assist with any renegotiation of the purchase price where appropriate.

Get in Touch to see how we can help.