In This Guide
choosing an agent
Conveyancing
1. What is conveyancing?
2. The conveyancing process
3. Exchange and completion
4. Costs
5. Choosing solicitors
6. Complaints procedure
7. DIY conveyancing
Holding viewings
Negotiation
Planning your sale
Prepare your home
Seller's Packs
Selling at auction
Selling in Scotland
Selling privately
Selling your home
Using estate agents
Conveyancing
Exchange and completion
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Once you have reached this stage you are nearly home and dry, but remember that until you exchange contracts, both you and the buyer can walk away without any contractual liability.
Contracts exchanged
The contract is a legally binding document that commits all parties
to the deal. There's no backing out once the exchange has taken
place, unless you have a desire to be potentially liable for significant
financial penalties. When both solicitors are satisfied their
work on the contract is complete, they will ask their respective
clients to sign the document and send a copy to the other solicitor
for signature by the other party involved in the sale. This is
the exchange of contracts - the moment you have all been waiting
for.
Buyer's deposit received
At the point of exchange you normally receive funds from the buyer's
solicitor for the deposit, assuming there is one.
Solicitor obtains a settlement figure
for your mortgage
Most people selling their home will not have paid off the entire
amount of their mortgage. Although some lenders now allow you
to transfer the outstanding balance from the property you are
selling to a new home, most people don't have that option and
tend to redeem one mortgage before taking out a new one. Your
solicitor will find out exactly how much you are required to pay
off (including any fees, redemption penalties and other charges
- click
here for an example schedule of charges that lenders can hit you
with)
Approves the transfer deed and arranges
for you to sign it
The transfer deed is the legal document that legally transfers
ownership of the property to the buyer.
Balance of funds received from buyer's
solicitor
The buyer's mortgage company will send the remainder of the purchase
funds to your solicitor. This is usually carried out by electronic
transfer.
Deeds sent to buyer's solicitor
Once the purchase monies are received by your solicitor, the title
deeds will be released and you no longer own your old home.
Solicitor takes fee from balance of
your mortgage
Before you get your money, your solicitor will normally extract
any fees and other costs that he has charged you.
Solicitor clears the balance of your
mortgage
The funds that arrive from the buyer's solicitor are then used
to clear the outstanding amount of your mortgage.
Remainder of mortgage balance sent to
you
Any money that is left over (often quite a sizeable sum!) is then
transferred back to you.
Transaction complete
Everything is done and dusted.
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