Conveyancing is a legal process linked with transferring ownership of property from a party to another. Since Conveyancing and moving house is a legal process, there are complex terms that you should understand. When you understand the common terms, it will be easier for you to understand the process even if you hire a conveyance solicitor.
The common Conveyancing terms provided by BHW Solicitors Leicester are:
An agreement is also known as the contract. When you exchange contracts, sale cannot be stopped unless it breached law.
Breach of contract
Once contracts are exchanged, it will be a breach of contract of any party pulls out of sale. Non-defaulting party can seek reparation from the defaulting party.
A solicitor will charge basic fee after instruction to undertake conveyance on your behalf. The fee caters for the cost of the solicitor’s knowledge and time. It is calculated on sliding scale based on value of the property on sale.
Client care letter
Solicitors usually send client care letter when you agree to use them for Conveyancing. This is a formal contract that outlines grievance procedures in case there is a discrepancy. Read everything carefully before you sign.
When you exchange contracts, it is important to take out building insurance on the property as in most instances, you will be legally responsible. Building insurance covers cost of rebuilding in event of destruction during a fire or other calamity.
Fixture and fittings form
This is a form that sellers complete to state the items included in property sale. The buyer must sign off before contracts are exchanged.
‘Let the buyer beware’ is the literal translation of caveat emptor. It means that a buyer has responsibility to discover structural integrity of the property using a dependable surveyor.
Success of a purchase will depend on success of others. Many links in the chain might cause a sale to fail of another sale is unsuccessful.
HM Land Registry
The HM Land Registry is the department of government that deals with property ownership in United Kingdom.
This is money charged to buyers on sliding scale according to price of property on sale. This money goes to HMRC.
Local authority searches
Searches are conducted during the initial stages of the conveyance. A search is designed to protect buyers from council plans that affect state of the property once they move in.
They only refer to plans that could affect a property up to its legal boundary. There is a more comprehensive search called planning search that you can get but at a higher cost by approximately £25.
Council for Licensed Conveyancers
Council for Licensed Conveyancers or (CLC) is a governing body that regulates and licenses conveyancers. You should ensure that a conveyancer is a licensed member before any engagement.
The process of Conveyancing and moving house ends when the seller receives full payment and the title deed reflects change of ownership.