THE CONVEYANCING PROCESS AS IT APPLIES TO A PERSON SELLING RESIDENTIAL PROPERTY
Set out below is a brief overview of the conveyancing process as it applies to a person selling residential property. Obviously this document does not cover every situation which may arise during a transaction and should you have a query please contact us.
BEFORE SIGNING THE CONTRACT
Your solicitor will need the original title deeds so as to draft the contract. The deeds will usually be either with a bank, a solicitor or in your possession. You will also have to attend with your solicitor and give full instructions regarding the transaction and the property you are selling, for example have there been extensions, furnish receipts for all annual charges such as the household charge, a list of contents passing with the sale and so on.
Once your solicitor has the title deeds and all the requisite practical information relating to the property, the contract can be drafted and will be sent to the purchasers solicitor along with copies of the relevant title documents. The purchasers solicitor may raise pre-contract enquiries which will have to be replied to and this may involve your solicitor having to take further instructions from you. The purchaser will sign the contract first and return it together with the balance deposit to your solicitor. You will than attend with your solicitor and sign the contract. At this point the contract is binding.
FROM SIGNING CONTRACTS TO CLOSING
- REPLIES TO REQUISITIONS ON TITLE
Once the Contract is signed by both parties the purchasers solicitor sends your solicitor a booklet of questions called “Objections and Requisitions on Title” which cover everything to do with the property from both a title and non-title perspective, the requisitions also set out the documents that must be furnished by your solicitor on closing. This process is called raising Requisitions on Title. Your solicitor must ensure satisfactory replies are furnished to all requisitions prior to closing and the information you gave your solicitor at the outset together with the information set out in your title deeds should enable your solicitor furnish these replies.
- CLOSING DOCUMENTS
Yours solicitor will approve the deed as drafted by the purchasers solicitor, this is the deed which, when signed, will transfer the title from you to the purchaser. Your solicitor will also draft all further completion documents and you will attend with your solicitor to sign all documents prior to closing.
- MORTGAGE REDEMPTION FIGURE
If the property you are selling is subject to a mortgage your solicitor will need to get a figure from your mortgage provider setting out what amount is required to redeem the mortgage together with a daily rate of interest. This figure will be sent to the purchasers solicitor so that on the closing date the purchasers solicitor will furnish your solicitor with a bank draft in favour of the lending institution for the amount due to redeem the mortgage.
- Closing takes place when the purchasers solicitor furnishes your solicitor with the balance purchase money in exchange for the pre-agreed list of completion documents and keys. The balance purchase money will usually be in the form of one bank draft for the requisite amount or if the property you are selling is subject to a mortgage one bank draft payable to the mortgage provider for the amount required to redeem the mortgage together with a bank draft in favour of your solicitor for the balance. Closing will either take place at your solicitors office or by post/delivery. On the day of closing your solicitor will have to furnish satisfactory replies to legal searches carried out by the purchasers solicitor.
PROCEEDS OF SALE
- Your solicitor will account to you for the money received which will be the balance deposit and balance purchase money and likewise the auctioneer will account to you for the booking deposit paid.
- Your solicitor will attend to redeeming your mortgage and ensuring that the purchasers solicitor is furnished with the correct documentation to enable the removal of the mortgage / charge from the title to the property you have sold.
Having disposed of a major asset, you may consider it prudent to make a new Will. We would be happy to draft a Will to suit your new circumstances with the compliments of this office.