Conveyancing F.A.Qs (Part 3)

To celebrate #NatConveyWeek2024 we are asking some of our #RealEstate #Management team to answer some of the most commonly asked questions about #conveyancing. Today, we hear from Bhavna Patel .

Bhavna studied Law at the University of Newcastle Upon Tyne and completed the Legal Practice Course at the College of Law, York. She qualified as a Solicitor in November 2004 and worked in London before moving to the North. She has worked for Chadwick Lawrence since February 2013 and is based in the Morley office dealing with all varying aspects of Residential Property Law.

Bhavna is a Partner and Solicitor, qualifying  in 2004.  She specialises in all aspects of conveyancing, managing our Morley office and a team of 8. 

How long does #Conveyancing take?

"If ever there was a multimillion-pound question, here it is!" - Bhavna Patel

On average we would say a conveyancing transaction can take anything between 8-12 weeks as a general minimum. However, the timeline can vary based on factors such as if there is a chain, adverse #survey reports, delays in receiving search results, providing adequate evidence for the source of funding and if the property is subject to mortgage or third-party lending.

We have been known to deal with large complex transactions involving the requirement for #land to be registered prior to sale, Grant of Probate and complex #leasehold sale transactions involving several third parties which have taken almost six months to a year!

Therefore, if #purchasing a property, here are some #toptips:

a.            Arrange a mortgage in principle to confirm the limit of borrowing before searching for a suitable property.

b.            Seek out suitable conveyancers that are able to deal with your transaction so that you are ready to instruct as soon as an offer is accepted. It may be a preference to instruct a firm adopting the latest digital conveyancing technology which will help reduce the delay in a transaction. Alternatively, a client may wish to instruct a local #solicitor so that they can meet in person. At Chadwick Lawrence we are prepared to offer a style that suits our client as we appreciate “one size does not fit all”.

c.             Consider instructing a surveyor. Do your research for the details of the report that will be available and their capacity to deal with your request, if necessary, in a timely manner.

d.            Make sure your funds and deposit are in order.

Why do I need to give my Conveyancer/Solicitor information about my deposit?

A Conveyancer/Solicitor will be required to see evidence which confirms that the buyer has all of the money which is needed to proceed with the purchase. Law firms are under a legal obligation to establish client’s proof of funds in order to comply with Anti-Money Laundering Regulations (#AML). The primary purpose of the regulation is to prevent #money laundering and fraudulent transactions taking place. Therefore, it is a good idea to ensure you have a clear paper trail by way of an explanation as to the build of the #deposit. The funds can be demonstrated in the following way:

•              Earnings/Salary: providing at least 6 months pay slips or bank statements showing the deposit of salary payments.

•              The sale proceeds of a property/remortgage: a Solicitors letter confirming completion of the transaction together with a Completion Statement and a Bank statement as evidence of the balance being transferred into your account.

•              Inheritance with a Solicitor: Please provide a copy of the estate accounts/Solicitors letter as well as a bank statement showing the monies being distributed to you.

•              Inheritance without a Solicitor: Please provide a bank statement showing the funds being sent to you as well as a copy of the will.

•              Stocks/ISA/Investments: Please provide some form of portfolio/valuation, together with a bank statement which shows the funds being sent to you.

•              Dividends/Bonuses: Please provide a bank statement showing the funds being paid to you together with a letter from your #Accountant confirming the payment to you are dividends/bonuses.

•              Lifetime/ Help to Buy ISA: whether any bonus is being claimed or not, it is best to provide a statement.

•              Rental Earnings: Please provide bank statements showing the rental income received each month; as well as a copy of the Assured Shorthold Tenancy Agreement.

•              Gifted Deposit: If funds are being gifted towards the deposit for the property you are purchasing , there are additional requirements to satisfy.

Each Giftor must supply:

a.            Proof of ID and address.

b.            Gifted deposit letter setting the terms of the deposit. This may be a standard form required by the chosen lender or a document drafted by the Solicitor.

c.             Please confirm the information has been given to the #lender to avoid any delays. If not, your solicitor will need to report the deposit before proceeding.

d.            Provide proof of funds as above.

Do solicitors/conveyancers charge if my transaction falls through?

The advice would be to read the terms of engagement. The house buying process can be an expensive affair and not to be considered without investigating the process, and possible associated costs. It is not unusual for Solicitors/conveyancers to charge for the work carried out, in line with the time spent on your matter. It depends on whether or not they are a “no sale, no fee” solicitor. Please make sure you confirm their position before instructing to avoid any surprises!

If you have anymore questions, then you can contact Bhavna by email: bhavnapatel@chadlaw.co.uk