CONVEYANCING

'Conveyancing' refers to the legal process of transferring a property or piece of land from one owner to another. There are normally two steps to the process:

• Exchange of contracts – when the contract details are agreed upon

• Completion – when the legal titles are passed over

It can be done either by a general solicitor or a conveyancer. A conveyancer is a lawyer who has chosen to specialise in property law or the legal work surrounding conveyancing.

As mentioned, it’s usually the duty of a solicitor or a licensed conveyancer to handle the conveyancing process.

One of their main responsibilities is to manage contracts and agreements between the buyer and the seller. They will also be in charge of registering or updating the ownership of the house you’re buying (or selling).

What’s more, if applicable, they will arrange the payment of stamp duty, liaise with estate agents, and carry out local searches. This way, they will be able to understand whether there are any new projects and plans on the horizon for the area.

A draft contract is drawn up by the seller when an offer is made on a property. This contract must include various details. These can include price, boundaries, planning restrictions, and so on. This contract must also include a completion date for the transaction and an energy performance certificate.

Although the paperwork can be daunting, it's important to go through the contract extremely carefully and negotiate any terms if necessary. Your solicitor or conveyancer will be able to help you with this and offer sound guidance. A conveyancer will also conduct several searches and checks on the property.

You can apply for a mortgage before putting an offer in on a property. Based on the information you’ve given your mortgage lender (usually a bank), they’ll evaluate how much they are willing to lend you. This will provide you with an ‘offer in principle’ that outlines this figure.

That said, you'll have to have a survey done on the property you’re looking to buy before that becomes a formal mortgage offer. This is because the lender needs to know that the property you want to buy is worth what you are willing to pay.

A survey is also important for your own peace of mind, as you need to know that there aren’t any nasty surprises about the structural state of the building.

There are three types of survey:

• Valuation survey: The most basic option, this is fine if you're remortgaging or buying a new build. It only provides an indication of the property's value, however, doesn't look at whether the building is structurally sound and won't highlight any potential problems. In most instances, it is worth paying for a more in-depth survey.

• Homebuyer's report: The most popular type of survey, this will look at the general state of repair of the building, the roof, and the windows. It will also note any problems such as evidence of subsidence. Some problems can still go undetected as the surveyor won’t do any deep digging, such as lifting the floorboards.

• Full structural survey: This is worth getting if you’re buying an old property or a renovation project. While this will cost you more than a homebuyer’s report, it is far more comprehensive. This will give you the most detail about the state of the property you’re looking to purchase.

When the buyer and seller are both happy with the terms, they sign and exchange contracts. The deal is now legally binding, so there's no going back! The buyer will normally pay a deposit on exchange and is now responsible for the home insurance on the new property.

Completion day is the final element of the conveyancing process. You can exchange and complete within a matter of hours, but most people prefer to leave seven to 28 days for any final checks.

Once everything is in order, the balance of the purchase price can be paid. It can be a nervous wait on completion day because you need to wait for your mortgage lender to transfer the money to the seller's bank account. Ultimately, this can take a bit of time.

Once the funds land, the property is yours and you can collect the key and move in. Your conveyancer will then register ownership with the Land Registry and arrange for you to pay any stamp duty that’s owed.

The cost of conveyancing can vary significantly based on your specific requirements. Fees are generally divided into two categories: legal fees and disbursements. ​

Legal fees depend on several factors that determine the amount of work the conveyancers will need to do. For example, whether you are buying, selling, or remortgaging, and whether the property is leasehold, freehold, shared ownership, or right to buy. Even details like using a Help to Buy or Lifetime ISA can make a difference. ​

Disbursements are fixed costs, some of which are paid to third parties, and typically need to be paid at the start of your transaction, regardless of the conveyancer you choose. These include fees for searches, bank transfers, land registry fees, management company fees, indemnities, leasehold extensions, ISAs, gifted deposits, or other costs your conveyancer identifies as applicable to your transaction. Stamp duty is also a disbursement however, it is only paid upon completion. ​

In general, if you are only selling and have the original documentation needed to sell your property, you can expect to pay between £700 and £1,000 in total. However, if you are both buying and selling, legal fees can range from £1,500 to £2,000, subject to disbursements, which can exceed £700. ​

Some conveyancers may charge an hourly rate or a percentage of the property price, which can leave you uncertain about your conveyancer costs until later in the transaction. The benefit of using Optimus via Money SuperMarket is that we have fixed the legal cost across all conveyancers on our panel and offer a no completion, no legal fee guarantee. Our professional sales team will discuss your quote with you over the phone and advise you of any potential disbursements before you commit to instructing you case. Conveyancers may determine that additional legal work is required once they have begun work on your file, however If this is the case, they will contact you to discuss the details and any associated additional fees. ​

The best way to find out an estimated cost for conveyancing is to get a quote with Moneysupermarket and speaking to the team.​

It's perfectly possible to carry out conveyancing yourself, but it can be complicated and time-consuming. You could also end up in a terrible mess if something goes wrong, so it’s highly recommended you find a solicitor to do it for you. Most people instruct licensed conveyancers to act on their behalf, as they’re specialists.

Conveyancers are solicitors who focus on property law and are regulated by the Council for Licensed Conveyancers (CLC) in England and Wales. They can sometimes work out cheaper than a solicitor, but a licensed conveyancer can only deal with conveyancing. If any problems arise that do not relate to property law, you will have to call in a solicitor.

A solicitor can carry out conveyancing but is also licensed to advise on other areas of the law.

If you are using a mortgage to purchase a property or are remortgaging, you are required to use a conveyancer to do the legal work. If you are not using a mortgage or remortgaging, then you technically can do this work yourself, however it can be complex and we would not recommend it unless you are very familiar with the process and requirements. You don’t necessarily need a licensed conveyancer or solicitor when exchanging property. In fact, you can choose to do the conveyancing yourself.

However, if you’re buying with a mortgage, you’ll need a licensed professional to handle the legal work.

It’s also important to note that some mortgage lenders will only want to deal with solicitors or conveyancers. Also, should any problems arise, you might not be covered by insurance – in comparison, solicitors and conveyancers will have professional insurance.

In general, unless you are very familiar with the documentation and processes required, we would always recommend using a professional conveyancer. This is to minimise any risk or legal complications that can arise.

You can only do your own conveyancing if there is no mortgage involved in the transaction. Even then, we strongly recommend using a conveyancer due to the complexity of the process.​

If not handled correctly, mistakes could be made, leading to potential problems such as boundary disputes. You may also miss major defects in the home or inadvertently overlook legal requirements when transferring ownership. If this happens you could face legal issues down the line. It is always wise to use a qualified conveyancer when buying, or selling a property.

​The most important aspects when choosing a conveyancer are receiving high-quality service, ensuring the transaction completes smoothly and quickly. ​

​We understand that conveyancer costs can be expensive, and you could be left with a hefty bill if your property does not complete through no fault of your own. This is why Moneysupermarket have partnered with Optimus, so you are protected under the no completion, no legal fee guarantee, and can have confidence that your conveyancers prioritise speed, service, and certainty.​

​In the past, customers were advised to use a local conveyancer to drop off physical copies of ID and paperwork. As conveyancing has evolved over the years to be more adaptable for customers, most documents are now handled via email, and digital copies accepted to expedite the process, so there is no longer an advantage to using a local conveyancer. Optimus have a dedicated in-house service team to support you at any stage throughout the process, from providing updates, to chasing information and explaining next steps, making it easier for you.​

​When choosing a conveyancer, its important to understand the fees involved and how they will be paid. For example, in addition to the no completion, no legal fee guarantee, Optimus also guarantee your Searches for 12 months. This means that if your property transaction falls through for any reason, and you’ve already paid for searches on that property, Optimus will conduct searches on your next property for no additional charge.​

Optimus provide conveyancing quotes from regulated firms you can rely on. All the firms listed with Optimus have been selected for their service quality. Since all of Optimus’ conveyancers have agreed to a fixed legal fee across the panel, you can choose a conveyancer based on their performance, not just their price.

The process of buying and selling a house is different in Scotland, so you should choose an experienced local firm if the property is north of the border.

In Scotland, for instance, land sale becomes legally binding once a series of letters (known as ‘missives’) are exchanged. The whole process can be relatively swift and may even be over in the space of a few weeks.

Another difference is that, across the border, it’s always the seller’s job to give evidence that they’re entitled to sell the property.

Conveyancers split their fees into two sections:

• Legal fees: This is the basic charge for the work they do

• Disbursements: These are charges for the third parties who conduct searches and surveys

• Surveys: Sometimes, surveys discover unforeseen problems which may need to be resolved before the process can continue

• Chains: A chain is a sequence of buyers and sellers, each waiting on someone else to buy their existing property before they can buy the one they want. If a property chain is long, it’s likely that there will be a hold-up further down the line

• Mortgage applications: Sometimes, a bank might take longer than normal to approve a mortgage application as it investigates the buyer’s finances

The length of the process varies between every case. The average time can be around six to eight weeks to completion.

However, this depends on multiple factors, including how complex the transaction is and the length of the property chain attached.

There are numerous elements that will affect your conveyancing fees in comparison to others:

• The value of a property: Some conveyancers take the price of your property into account and charge a percentage based on this

• The tenure of the property: Whether it is on a leasehold or freehold can affect the price of conveyancing due to the different legalities and paperwork associated with each

• Disbursements: Every sale or purchase will require different surveys and searches, which will be reflected in your fees

• Legal fees: The basic fee a conveyancer charges will differ from business to business. This can range from £300 to £2,400, depending on whether you’re buying, selling, or both

There are many different type of disbursements that may be necessary when buying or selling property:

• Bankruptcy search: Your solicitor will check all named parties listed on the mortgage application to ensure that no one has been declared bankrupt (£2 to £4)

• Drainage search: This will vary based on different water companies. It will make sure that the property is connected to a freshwater supply and to sewage systems (£30 to £40)

• Environmental search: An environmental search looks at factors such as subsidence and ground contamination (£30 to £35)

• Land registration fee: This is based on the value of your property (£40 to £910)

• Land registry office copies: Your solicitor will complete searches to make sure the seller is the legal owner. This price is for one transaction (£4 to £8)

• Local authority searches: This can be based on the borough that the property is in or the postcode. These searches determine factors like planning applications (£100 to £200)

• Telegraphic transfer fee: This is the charge incurred by the bank to send the money to the seller (£25 to £45)

On average, money is spent in three stages when buying property or land:

1. Starting the transaction: You’ll be asked by your conveyancer to put up some money to pay for searches and surveys at the property you’re looking to purchase

2. The deposit: When it’s time to exchange contracts, you’ll be required to pay 10% of the purchase price. Once the contracts have been exchanged, you are then legally bound to complete the purchase on the day of completion

3. Completion: On the day of completion, you’ll be required to put up the rest of the funds. As this needs to be sent through your bank, it can take some time to be processed. Normally, you are able to collect the keys to your new property after midday once everything has been completed

There is no universal answer to this question, as it depends entirely on your circumstances.

If you hire a solicitor or conveyancer who offers a no-sale, no-fee package, you’re unlikely to pay conveyancing fees should the sale fall through. That said, you may still have to cover other costs and fees, especially if any searches have already been carried out.

If you’re unsure, make sure to carefully go through your agreement’s terms and conditions before you hire a conveyancer or solicitor. This way, you’ll know what to expect if the property sale doesn’t go to plan.