Conveyancing: The Ten Steps to Completion
What happens when you sell a property?
Below is a step-by-step guide explaining the legal process involved in
selling a property
Step One: Obtain Title Deeds
Once instructed your solicitor will send you a quote and a form
that asks for your mortgage account number and details of your bank/building
society. Once returned filled in they will apply to the bank/building society for the
deeds to your property or, if you don’t have a mortgage, request the deeds from yourself
Step Two: Property Information Form
You will be sent a property information form to fill in giving
your personal details, so if questions are asked by the buyers solicitors they may be answered.
Step Three: Title Deeds Received and Draft Contract
Once your solicitor has received the deeds s/he will be able to
prepare a draft Contract. This will be sent to the buyer’s solicitor along with
the other information
Step Four: Receive additional enquiries from buyer’s solicitor
The buyer’s solicitor may require some additional information from you. It may
be that answers you completed on the property information form require more
detail or that the results of their searches have prompted additional questions.
At this stage, your solicitor may need to obtain the additional information from
outside sources, such as the local authority or insurance company.
Step Five: Answer all enquiries and Approve draft contract
Once all enquiries have been answered, your solicitor will make sure that the
buyer’s solicitor receives everything that they require.
When the buyer’s solicitor is happy with all the information,
they will send back the draft Contract approved, ready for you to sign.
Step Six: Make an appointment to sign contract
Your solicitor will arrange for you to sign the contract as
soon as possible. If there is a dependant purchase s/he will make sure that the
two transactions are tied in.
Step Seven: Receive deposit
Your solicitor will ask the buyers solicitor to arrange a deposit of
between 10% and 15% of the sale price. Although the money is not expected before
exchange, the buyer’s solicitor will need to confirm that the buyer has the funds
in place.
Step Eight: Propose a Completion Date
Completion is the point at which the buyer pays for the
property and it changes hands. This date needs to be agreed before exchange of
contracts can take place.
Step Nine: Exchange of Contracts
Once your solicitor has received your signed contract and if buying another your
proposed purchase is ready, they will inform the buyer’s solicitor
that you are ready to exchange contracts.
Once contracts have been exchanged, you and the buyers are
legally committed to buy/sell the property in question. Failure to do so at this
stage will result in the party at fault being in breach of contract.
Step Ten: On Date of Completion
The agreed completion date is the date upon which you must give
vacant possession (move out with all your belongings) and the buyer must pay the balance of the purchase price and collect the keys.
Failure to complete will result in the party at fault being in breach of contract.