When the title of a property is legally transferred from its present owner’s possession to a new owner, to whom it may be sold or gifted, the entire process is termed as a conveyance. However, there are several steps for completing the conveyancing transactions following all the legal conditions perfectly. So, it is best to hire an experienced conveyance solicitor for guiding both parties through all the legal procedures. It is essential for both the present and the new owner of the property to know all the details of conveyance process and to become prepared for it.
Steps to be taken for fulfilling the conveyance transactions
- Pre-conveyance tasks – First of all, both parties should have their own conveyance solicitors, who can meet and discuss all the clauses of that particular conveyance. The solicitor working on behalf of the buyer should check all the documents needed for conveyancing transactions. He should also do a thorough research on the background information about that specific property. On the other hand, the solicitor of the seller may check the personal and financial details of the proposed buyer, before his client signs the contract with him. The justification of the price decided for that property should be checked with the real estate market of the city by the solicitors of both parties.
- Preparation of contract drafts – When the solicitors of both parties fully contend with their investigations; they may prepare the drafts for the final transfer of the title of that concerned property. Both the solicitors will discuss among themselves, including their client in these meetings for writing down the draft, which is the most vital part of conveyancing transactions. All the terms and conditions of this deed, as well as the price of the property, should be included in this draft, to which both parties should agree amicably.
- Exchanging the contract papers – The solicitors will make two copies of the written contract paper, which should be then exchanged between the two parties. As both parties sign and exchange these contracts, they legally finalize the deal and there is no way back from this stage of conveyancing transactions. Both parties legally agree to all the terms and conditions mentioned in the contract, as they sign it. Generally, it takes around six weeks to complete this exchange process of property contract that mainly happens in case of residential property transfers. More time may be needed for the completion of legal procedure for commercial property transfers.
- Post conveyance stage – Now the solicitor on behalf of the seller needs to prepare a final calculation of the entire figure of the property price, including the payment of mortgage amount if there is any. Then this final amount is sent to the solicitor of the buyer, who prepares a final financial statement based on that given figure. Both solicitors keep close contacts with their clients while completing the conveyancing transactions for that particular property. Then the buyer needs to make the final payment of the property price, including all the dues of loans or mortgage. All the documents of this completion procedure should be signed by both parties and the hard copies should be handed out for closing the entire deal.
Once all the conveyancing transactions are over, the previous owner should vacate the property and hand over the relevant keys to the new owner, as a legal part of the title transfer. The keys may also be handed over to the real estate agent who was involved in this property transfer, after which the buyer is free to enter and take possession of that property on any day.
Author: Olivia Wilson