Frequently asked Questions about Conveyancing
It is normal to have several questions about conveyancing as it is a huge step and involves lots of money. You may also have several questions about the role of the conveyancer in your transaction. The following is intended to help answer your questions.
- What if there is a legal problem with my contract?
Your conveyancers will be there the whole time in case any problem arises during the process. They will provide advice and guidance when legal problems arise and in situations that require a high level of expertise. If things get too complicated you may have to hire a solicitor with more expertise.
- What about the prices involved in conveyancing?
The different costs generally add up to 1500 pounds. The total cost depends on the type and price of property you are selling or buying as well as the kind of conveyancing service used for the transaction. Fees include the conveyancer’s basic fees and disbursements. Disbursements usually include stamp duty, land registry fees and search fees. You also need to budget for lender’s valuation fees and your own survey fee. Each of these fees will also have VAT added to them. You will also have to take your mortgage into consideration.
- When do I have to pay any money during the process?
If you are buying a property, your solicitor will usually ask you for approximately £125.00 at the beginning to cover the search fees that will be paid out on your behalf. The balance of the price and the solicitor’s cost, as well as any additional charges, will be payable shortly before completion of the deal. If you are required to pay a deposit it is usually handed over when we exchange contracts so your conveyancer will need to have cleared funds by then. If you are borrowing more than 90% of the purchase price then you may be required to pay prior to the exchange of contracts. However, if you are selling then you do not need to pay any money in advance. The costs and agent fees will be paid out from the sale proceeds on completion before any money is sent to you.
- Will I need a survey?
If you are obtaining a mortgage your Lender will expect to undertake a valuation of the property. For an extra fee you may be able to arrange for the same valuer to carry out a more detailed survey of the property. As a property purchase is usually the most important financial transaction you will undertake in your lifetime it would seem sensible to have a thorough survey undertaken on your behalf to protect your interest. If the property is quite old and you are particularly concerned about its condition you can obtain a full structural survey report which is even more detailed. Also be careful and read terms and contracts or else, provided you have not been misled, you will be liable for any problems that you discover after exchange of contracts.
- Do I have to pay a deposit?
If you are a first time buyer you will generally need a deposit. The terms and conditions usually depend on the buyer, seller and conveyancer. Generally this is 10% of the purchase price, but a lower figure may be agreed if, for example, you are borrowing more than 90% of the purchase price. If you are required to pay a deposit it is usually handed over when we exchange contracts so your conveyancer will need to have cleared funds by then i.e. any cheques will need to have cleared before the deposit can be used. Normally you do not have to provide a deposit if you have a sale and purchase. This is because you can use the deposit from your sale towards your purchase. If this deposit is a lot less than the 10% deposit required on your purchase, then you may be asked to make up the difference. As part of the process we will advise you about deposits and when this money is required.