If you’re thinking about buying your first property, or you’re currently in the process of doing so, it should be one of the most exciting times in your adult life. But often, the lengthy, somewhat complex process is underestimated, and excitement can very quickly turn to confusion and frustration.
In this article, we’re going to summarise the boring (sorry, legal) side of buying a property so you can brace yourself for the process.
What Actually Happens When You Buy A Property
The process of buying a property may vary slightly depending on a number of factors. What country you are buying property in, the value of the property being purchased and many other factors can alter the overall process. But we’re going to attempt to break the general process down into the following steps:
Offer Accepted: Aside from getting the keys to your new home, having an offer accepted is probably the most exciting part of the journey, and it’s where your property ownership begins in many ways. While this is where you’ll have an agreed sale price with the current owner, it’s far from being your property yet.
Conveyancing Process: A conveyancer specialises in property law. They’ll handle most of the legal bits for you and translate any technical jargon into simple terms. The conveyancing process may involve things like legal searches, exchanging contracts and so on.
Legal Searches: This is where your conveyancer will try to identify any potential issues with the property. Searches involve local authority swatches, water searches, environmental searches and land registry searches.
Contract Exchange: Once both the buyer and seller have exchanged contracts, the sale of the property becomes legally binding. This means you run the risk of being financially penalised if you do not ultimately go through with the sale.
Completion: This is the final stage and ultimately what you have been working towards since having your offer accepted. Once contracts have been exchanged, your conveyancer will transfer any remaining funds and you will then receive the keys to your new property.
Why You Need a Conveyancer
To first-time buyers, conveyancers or solicitors may be simply seen as an expense. But ultimately, they’re a necessity if you want your house sale to go through smoothly. The main reason why you need a conveyancer or solicitor is to ensure that the property you are buying is safe and that the sale is above board. As outlined above, they’ll also handle complex legal issues involving contracts, ownership and funds.
When it comes to choosing a conveyancer, don’t be tempted to simply seek out the cheapest option. While all property conveyancers do the same job, it doesn’t mean they do it to the same standard. And when mistakes can cost both time and money in the buying process, it’s important to go with an experienced solicitor that can demonstrate past success such as Bond Tuner.
It’s worth pointing out that, by law, you don’t need to have a conveyancer when buying or selling a property. Recently, more people have turned to DIY conveyancing to save costs when completing the sale of a house. This essentially sees the person buying or selling the property oversee the legal process themselves. While this isn’t illegal, it certainly isn’t recommended for most people as it does carry a lot of risk.
Risks of DIY conveyancing include errors around searches and contracts which can ultimately jeopardise the sale. If you’re looking to buy a house with a mortgage, you can also expect lenders to demand a qualified solicitor or conveyancer to oversee the process. Without this, you are unlikely to be given a mortgage.
Post Completion
After completing, you probably think you are handed the keys to your new home and off you go. Unfortunately, there are still a few more boxes to tick. The good news is that your property solicitor should handle most of these issues for you as well.
Stamp duty must be paid on all property over £125,000 in the UK, although it varies depending on the price of the property being sold. You, or rather your solicitor, must pay any stamp duty charges within 14 days of completion.
As the buyer, not much is needed from you after completion. However, you will need to ensure issues such as insurance and utility bills have been sorted. You’ll also need to notify your employer, your bank and any other relevant parties of your address change.
Final Thoughts
Don’t let the process of buying a property become a daunting one, especially if it’s your first home. While it can seem complex and even boring, the truth is that an experienced, reputable conveyancer should make the legal process a seamless one. You can also help avoid running into any pitfalls by having regular contact with your solicitor and acting quickly to read or sign any documents.
