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A Step-by-Step Guide to Property Transactions

Buying or selling a property is a significant milestone in life, but the legal intricacies involved can often seem daunting. Understanding the conveyancing process is crucial for both buyers and sellers to ensure a smooth and successful transaction. In this step-by-step guide, we will break down the conveyancing process into simple, easy-to-understand stages, highlighting key milestones and potential challenges.


Getting Started: The Offer Stage


At this initial phase, the buyer makes an offer, which, if accepted, forms the basis for the transaction. The offer is typically made in writing and may include conditions such as the inclusion of specific fixtures or fittings. Once the offer is accepted, both parties move on to the next stage.


Conveyancing Solicitor Engagement


Upon agreement of the offer, both the buyer and seller appoint their conveyancing solicitors. These legal professionals play a crucial role in facilitating the transaction. They handle legal paperwork, conduct property searches, and communicate with the other party's solicitor.


Drafting Contracts: Preliminary Agreement


The seller's solicitor prepares the draft contract, which includes details about the property, the price, and any conditions. The buyer's solicitor reviews the contract, title deeds, information forms and may request additional information or negotiate terms on behalf of the buyer. Once both parties are satisfied, they move towards exchanging contracts.


Property Searches and Enquiries


The buyer's solicitor conducts various searches to ensure there are no hidden issues with the property. These searches may include local authority searches, drainage, Mining and environmental searches. Any issues discovered are raised as enquiries with the seller's solicitor.


Mortgage Approval and Valuation


If the buyer is relying on a mortgage to purchase the property, the lender will conduct a valuation to ensure the property's value supports the loan. Once the valuation is successful, the mortgage offer is issued, and the buyer's solicitor reviews the terms.


Exchange of Contracts


This is a significant step where both parties sign and exchange contracts. The buyer pays a deposit (usually 5-10% of the property's purchase price), and a completion date is set. At this stage, both parties are legally bound to the transaction, and backing out may result in financial penalties.


Pre-Completion Checks


As the completion date approaches, both parties conduct final checks. The buyer's solicitor ensures all queries have been addressed, and the seller's solicitor provides a statement of completion, detailing the outstanding balance. The buyer arranges for the remaining funds to be transferred to the seller's solicitor.


Completion Day


On the agreed completion day, the balance of the purchase price is transferred from the buyer to the seller. Once the funds are received, the seller releases the keys to the buyer, and the transaction is complete.


Post-Completion: Registration and Final Steps


After completion, the buyer's solicitor registers the property with the Land Registry, transferring ownership officially. The seller's solicitor pays off any outstanding mortgages and forwards the remaining funds to the seller. Both parties receive confirmation of the registration, marking the conclusion of the conveyancing process.


Navigating the Conveyancing Journey


For a seamless and successful property transaction, consider reaching out to RJM Solicitors – your trusted partners in navigating the legal landscape of real estate transactions. Our experienced team is ready to guide you through every stage, ensuring your journey in property transactions is not only smooth but also secure. Take the first step toward a confident property transaction – choose RJM Solicitors as your dedicated legal partner.

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