The Purchase Process - A Basic Guide

When you purchase a property, you need a legal representative to guide you through the complexities of the process. If you are buying and selling, then it is always advisable to use the same legal firm to handle both sides of the transaction. Below is a basic step by step guide as to what you can expect on your journey, with some key milestones along the way.

And so it begins

Once you’ve decided on the best conveyancer to represent you, you will need to formally instruct them to act on your behalf. When they have accepted your case, which is usually within 24 hours, they will send you a client care pack to complete and return. This will include a questionnaire and, most importantly, a letter of engagement for you to confirm to their terms and conditions. Make sure you inform the estate agent selling the property of who your legal representatives are so they can issue the Memorandum of Sale.

The ball is rolling

As soon as the conveyancer has received the initial paperwork they can then start working on the file. They will need you to provide ID, which can often be certified digitally, and they will ask you to pay your search fees upfront. Searches are requests submitted by your conveyancer to local authorities which disclose important information regarding the property and surrounding areas. Whilst most conveyancers will ask you for fees for the searches to be paid very early on, they won’t order them until they have received the Draft Contract from the other side.

The Waiting Game

After the initial flurry of activity early on there may appear to be a lull in the process, but that doesn’t mean nothing is happening. Your solicitor will raise a number of questions or ‘enquiries’ from the draft contacts. Some of the searches may come back quickly but often the local search takes the longest. This will vary depending on which part of the country you live in with some local authorities being significantly quicker or slower than others. Your conveyancer may raise additional enquiries after each search is back, or may wait for them to all be in before asking the questions in one go.

Our Bit, The Mortgage

Whilst all of this has been happening with the solicitors we will have been working away with the lender to get you your mortgage offer. After the offer is issued a copy will be sent directly to yourselves for your record, with a slightly different version being sent to the conveyancer for them to check through the legal elements against the property. Once happy they will send you a mortgage deed to sign and return to them.

The Home Stretch

Once your conveyancer has received of all necessary documentation and confirmed they are happy with all of the replies to enquiries, they will send you a detailed report of everything that they have found out about the property. You will need to sign this off to confirm that you are happy to proceed with the purchase. You may also need to re-sign a couple of documents from the draft contracts as some of the information may have changed during the process.

When are we Moving?

When everything is ready and everyone has agreed to a completion date your conveyancer will draw up a completion statement outlining what remaining funds need to be transferred in anticipation of exchange. This will include the deposit for the property, their legal fees plus any additional disbursements and additional charges such as Stamp Duty. If you are buying a property in a chain your deposit will often come from the sale of your existing property so you may not need to transfer any money. Once you have exchanged the transaction becomes legally binding.

The Big Day

On completion day the sellers will vacate their property and release the keys. This is often done via an estate agent but the time of the day can vary dependent on the length of the chain or  when legal completion takes place. Completion takes place once your conveyancer has sent your  funds to the sellers conveyancer, this will include both your deposit and the mortgage funds which they have received from the lender. They will also send any Stamp Duty charges to HMRC at this time. After completion you will receive a copy of the registered title from Land Registry, but this often takes a little while.

Glossary of Terms

We understand that people in the property industry often use terms that can be confusing. We've highlighted a few below and provided a little more information to help you understand.

 Memorandum of Sale

Drawn up by the estate agent, the memorandum outlines the key details of the property sale, including the names and addresses of the buyers and sellers and each of their appointed legal representatives. It will also confirm the address of the property being sold, the agreed sale price and any other additional agreed conditions of the transaction.

 Searches

There are a number of these requests, but the main ones are the Local Search, Environmental Search and Water and Drainage Report. A local search will identify any current or historical planning permissions or applications, any nearby proposed developments and tree preservation orders. The environmental search will assess any significant risks including contaminated land, subsidence, radon gas or flooding. The Drainage and Water search will confirm whether the property is connected to the public waste and sewer pipes and also confirms whether or not there are any public drains within the property boundaries. In some areas you may also require a Mining search, which checks for risks from past or current mining, such as sinkholes or mine shafts.

Draft Contract

Similar to your initial paperwork for buying the sellers will have completed their own questionnaire including fittings and contents form, which confirm what will and will not be included in the sale and a property information form, which details the boundaries for the property. These will be sent to your solicitor alongside a copy of the Energy Performance Certificate, any other important certificates or warranties, title documents for the property and draft legal transfer document called a TR1 form.

 Mortgage Deed

A legally binding contract that gives your lender a registered charge over your property, enabling them to repossess it if you fail to keep up with your mortgage payments. It also outlines the terms of the loan including the amount, term and any additional conditions. The deed essentially links the loan to the property.

 Stamp Duty

Stamp Duty Land Tax is a progressive tax that is payable to the Government on any purchase of land within England and Northern Ireland. Stamp Duty is paid based on the purchase price of the property and can vary depending on which band the property falls within. There are some Stamp Duty relief for people such as first-time buyers, or there can be additional charges if you own multiple properties. Stamp Duty also exists in Scotland and Wales but under a different name with slightly different calculations. Basic transactions can often be calculated using figures provided by the Government, but for more complicated transactions you may need a tax advisor.