It is important to know what conveyancing is and who does it, so we can have a better understanding on why it can cost a fortune. Conveyancing is the process of transferring the legal title of a property from the seller to the buyer. A conveyancer will deal with the conveyancing process when buying or selling a property. They are responsible for ensuring that both parties meet all of the legal obligations during the transaction.
Conveyancers or property solicitors’ tasks includes preparing the legal documents that are needed in a real estate transaction.
The seller’s conveyancer will prepare the Contract of Sale and will make sure that the final contract contains all of your requirements, which can help protect the seller from any conflict that may arise during the conveyancing process. Sellers will need to obtain a Vendor’s Statement, as this will need to be served to the person that wishes to buy the property before the signing of the Contract of Sale. If the seller fails to follow this procedure, they may face serious consequences. The conveyancer will carry out the title and planning searches for the final statement. The conveyancer will need to ensure that all of the disclosure obligations are met in relation to the laws in the seller’s state or territory.
The buyer will also need a conveyancer who will be in charge of preparing the documents that will ensure that the property is transferred to them in a rightfully and legal manner. Essential details to meet the state or territory’s legal regulations will need to be included in these documents.
During the conveyancing process, the conveyancer will provide legal advice to help their client make informed decisions throughout this.
The seller’s conveyancer will be able to give advice if the seller has special conditions [which will be dependent on the seller’s circumstances] they want to include in the Contract of Sale. The seller’s conveyancer will be able to advice regarding the legal documents that needs to be given to the buyer in order to complete the transaction. They also have the authority to contact the mortgagee if needed to arrange the release on the date of the settlement.
On the other hand, the buyer’s conveyancer will advise on the terms and conditions of the contract and let you know of the terms that you should be aware of, hence it is a good idea to have the conveyancer read the Contract of Sale before signing to fully understand its content. Additionally, they can help with arrangement of the settlement with the buyer’s bank and providing necessary details for when the bank prepares the mortgage documents.
If the buyer requires some adjustments made before the settlement, the conveyancer can help and will also ensure that you are only paying for the property costs from the settlement date to avoid making payments before the settlement date, e.g. utility bills, council tax. The buyer’s conveyancer will be able to help their client determine what they need to pay. Some of these may include a stamp duty, transfer fee and bank fees. These costs will be dependent on how much is being asked for the property and where it is located.
A conveyancer will also be able to help in finalising the settlement. The seller’s and the buyer’s conveyancers will organise a proper time for settlement [that is ideally convenient for both parties], which will be written in the Contract of Sale. The buyer’s conveyancer will get in touch with the buyer’s bank to ensure that all necessary payments are ready. When the settlement is complete, the conveyancers will contact the real estate agent to direct them to give the keys to the buyer.
Conveyancing involves a lengthy and stressful process; hence conveyancers and property solicitors can be a financial burden, especially if they have to carry out a more thorough search in where the property being bought is located, e.g. if there is a body of water nearby, etc.
According to HomeOwners Alliance, the legal fees of conveyancing can range from £850 to £1,500, not including the cost of disbursements [which, on average costs £2,588]. On the other hand, if the property is a leasehold, then the legal fees will be more expensive. This is why it is important to compare different conveyancing services to ensure that what you choose can effectively do the job for you, whilst still sticking to your budget.
There are some ways you can do if you want to minimise your conveyancing costs, such as by opting to use an online conveyancing service. By doing so, you will be able to get a conveyancing quote in an instant. Some, such as My Conveyancing Specialist offers a fixed fee quote and assures no hidden costs, which means that what you see will be what you pay. In addition, to give you more security and minimise your financial risks, they also offer a ‘No Move, No Fee’ guarantee. This means that if your move fails, you do not have to pay the fees. This is why the conveyancers make sure that the purchase is completed with minimal delays.
Alternatively, doing conveyancing can also be done on your own. However, you will be exposing yourself with a lot of risks if you don’t know what you are doing. Although, it is possible, professionals generally do not recommend doing this, as you can be taken advantage of by the other party if you lack experience, the process may be delayed if the process is not followed correctly and end up spending more than you would have if you hired a professional conveyancer.