Below are some of the most frequently used terms in conveyancing. Click on the phrase to see the explanation.
Coal search
Contract documentation
Completion
Drainage search
Estate agent’s fees
Exchange of contracts
Inland Revenue and Land Registry
Local Authority search
Mortgage offer
Redemption statement
Title deeds
Coal search
There are a number of searches that you may need to arrange on your new property. This is a specific search for mining activities that may have taken place near the property and whether any subsidence claims have been made.
Contract documentation
The seller’s solicitor’s draft contract package will contain the draft contract, the legal title, property information form and fixtures, fittings and contents form. The buyer’s solicitor will review contract pack and raise any enquiries they have in relation to the legal title or the property.
Completion
This is the date from which your legally own the property. On the completion date the purchase monies will be placed in the bank system by the buyer’s solicitor, once the mortgage advance from the lender is received, if applicable. Once the seller’s solicitors receive the money they will then authorise the release of the keys – usually this will be from the estate agent.
Your solicitor will call you on completion to tell you when you can collect your keys and all you need to do is move. A time can usually not be guaranteed, as it is dependent on the chain and banking systems.
Drainage search
Another type of search, used to identify whether or not foul and/or drainage water from the property has access to the public sewerage system and to identify if any public sewers are on the property.
Estate agent’s fees
People selling their homes normally have to give a percentage of the sale price to the estate agent as commission, usually between one and three per cent. How much an agent charges depends on the type of contract you have with them. It is worth shopping around and getting quotes from a few different agents before you agree to sell through a particular one.
Exchange of contracts
Exchanging contracts is a milestone process which makes the purchase legally binding and neither party can withdraw from the transaction without severe consequences, including breach of contract.
Contracts can be exchanged once the buyer’s solicitor has received all the search results, replies to enquires and the signed documentation from the buyer, and once the balance monies have cleared through the banking system. Once a completion date has been agreed throughout the chain, the exchange of contracts will take place.
The buyer will need to make arrangements with the seller or estate agent to get the keys to the property. Once contracts have been exchanged, the buyer’s solicitor will request the mortgage advance from the lender, if applicable.
Inland Revenue and Land Registry
After you have moved into your new house, solicitors will still have post-completion work to finalise for you. This includes the completion of a land transaction return form, which needs to be completed on all matters and also sent with the appropriate stamp duty payment if applicable.
After approximately 28 days your solicitor should have received a certificate from the Inland Revenue and will then be able to register your ownership at the HM Land Registry and the lender’s charge if applicable.
Once the registration has been completed your solicitor will need to send the legal title to your lender and a copy of the legal title and any pre-registration title deeds and documents to you for your safe keeping.
Local Authority search
This search is used to ascertain if there are any planning permissions relevant to the property, to identify if access roads are adopted and to identify any “local land charges”, such as conservation and smoke control area statuses
Mortgage offer
If you are taking out a mortgage to assist you to buy your property, your solicitor will need a copy of your mortgage offer from your lender. You will need to comply with any special conditions attached to the mortgage by them.
The solicitor will then report to you on the mortgage, and send you the mortgage deed together with any other documentation which the lender requires to you to sign.
They will provide you with a completion statement showing any amount required from you, including the balance of the legal fees, VAT and expenses, in order for exchange and completion to take place. Please note that if there is a balance due from you, contracts cannot be exchanged.
Redemption statement
This is the figure provided by the mortgage lender that shows the amount needed to clear your existing mortgage. We will request a redemption statement from your lender and ask them to calculate the amount outstanding up to the date you are due to complete. Mortgage lenders will sometimes send a further copy to you for your information.
Title deeds
Solicitors will need to obtain a copy of your legal title from the Land Registry (if registered) or your title deeds (if unregistered), as well as any guarantees or other documents that are not contained within your title deeds.
If you hold any pre-registration title deeds (which may have been sent to you when you purchased or re-mortgaged your property) then these may be useful to the buyer.