Conveyancing Explained
When looking to buy a house, finding the perfect home is often the most pleasurable and straightforward part.
That’s not to say that the negotiations etc will be straightforward or pleasant or indeed that there should be an expectation of finding your ideal house within a set time — it’s just that, in the most part, it will be fun, educational and should feel like a positive journey.
That said, clients often begin this stage wondering how long it takes to buy a house, and how long will it take a good solicitor to buy a house or at least do their part. As with almost everything, the answer will always depend on preparation.
As with everything in life, communication is the key to a smooth purchase, and a clear understanding of the process will help manage expectations on both sides. Whether it’s your first time or not, knowing how long it takes to buy a house can help avoid surprises.
There will be a lot of pressure from the seller and agent to exchange contracts at the earliest possible time; however, this stage should not be rushed. If you’re wondering how long it takes to buy a house, the honest answer is that the time varies, and trying to speed things up often leads to frustration.
Consequently, it will need to be managed, and having an experienced buying agent on your team will significantly improve your chances of success and, in theory, should reduce much of the unnecessary stress from the process of trying to buy a house.
Below is an outline of the requirements for a typical residential purchase, along with a guide on the timing typically involved. If you’re curious about how long does it take to buy a house, this guide will give you clarity.
Step 1 – Select a solicitor (Day one or preferably earlier)
If you haven’t selected a solicitor yet to buy a house, we strongly recommend considering one that we have already vetted, who has a proven ability to work extremely well with our clients. We will always recommend at least two options, and please note that we do not accept referral commissions from any company, ever. Getting this step right early will determine how long does it take to buy a house in your case.
If you have selected a solicitor, they should be clearly instructed to involve Rowallan throughout the process. We will continue to act on your behalf, being your interface between you and the seller or their selling agent. Without a full understanding that can only come from clear communication, we are unable to fulfil this role for you. When you’re looking to successfully buy a house, you will want to remove as much of the over-powering emotions as possible and coordination like this is essential.
Types of advisors – Lawyer or Conveyancer
There are two types of possible legal representatives: a legally qualified solicitor or a practising conveyancer. Both can do the job for you, and the conveyancer will likely be cheaper. When choosing a solicitor or conveyancer to buy a house, this decision this may well affect how long it takes to buy a house and should be a key question.
To be clear, many, but not all conveyancing firms may assign you a case number. You are unlikely to have a single point of contact; they will be limited in their knowledge, and when all is about to be exchanged, they will need to ask a legally qualified solicitor (usually in their firm) to read and confirm that your file is complete before exchanging. This can slow things down when you’re eager to buy a house quickly.
Additionally, as we will see later, if you have a mortgage, your solicitor will need to be on your chosen bank’s (pool) accredited list. This needs to be checked prior to instruction.
Our experience, not based on research but on our own experience alone, is that purchases that rely on conveyancers may be more protracted and harder to keep informed about. This adds to the overall question of how long does it take to buy a house in today’s market.
The upshot here is that you pay for what you get, and cheaper is more often than not a very false economy. This remains true in every aspect when trying to buy a house.
Step 2 – Becoming a client of your selected firm (Day one to as long as two weeks)
Registration
You will need to select a firm that the seller is not already working with, with one exception. If you are both existing clients of the same firm, an exception can be made with different partners of the firm working separately on behalf of their own clients.
The process of registering with a solicitor might take longer than you think, and it is advisable to complete this process as early as possible, even before you have found a house to buy. They have to complete their KYCs (Know your client), and this includes:
Money Laundering
As with your buying agent and the selling agent, your solicitor will need you to comply with money laundering regulations. Due to recent regulatory changes, your solicitor cannot even provide the most basic advice until this has been completed.
This can be handled digitally through an app or a similar service, or sometimes by providing two forms of photographic ID and a document confirming your address. Checks will then be carried out to ensure that you are not on a ‘watch’ list or other list that would require your representative to notify the appropriate authorities.
Source of funds
This process is not as straightforward as you might think. Not only do you need to be checked, but the source of your cash, savings, and mortgage need to be checked too! This can take some time, so it’s best to get everything sorted and approved as soon as possible.
Payment
You will need to pay an amount to your solicitor from the beginning. This ensures they have enough funds to cover the initial costs of your purchase. These might include items such as searches (more details below).
Step 3- Receiving Sales Memorandum (Week one)
Once you have agreed on a price and proposed terms, the selling agent will send a sales memorandum to all parties involved. This will include the following information.
• Address of property
• Involved parties
• Fixtures and Contents included
• Proposed Exchange and Completion dates
• Price Agreed
Step 4 – Surveys (Week one and two)
There are several types of survey you might want to conduct, and since this is the first point at which the seller perceives you making a financial commitment to purchase their house, it should be done early on to demonstrate willingness.
Property Survey – Should be booked within the first week
There are several survey types. We will, of course, advise you on the most suitable type of survey for your needs, which could range from a full structural survey to a homebuyer’s survey or an extremely detailed engineer’s survey.
Each has its costs and benefits, and while not always necessary, we believe that at least a structural survey should be considered, even for a new build. This is not the time to cut costs!
You will find that most surveys have several caveats, from ‘there was carpet on the floor, so we were unable to look under it’ to ‘it wasn’t raining, so we couldn’t check the guttering’, but with a good surveyor, you will be able to meet them on site during their last 30 minutes or speak to them on the phone to gauge their ‘real’ thoughts.
With legislation as it is, most written surveys will sound quite alarming to ensure the surveyor isn’t found wanting. However, a quick chat will often reveal their true thoughts on the condition of the house.
You should send your survey to your solicitor, accompanied by your own thoughts and comments.
Mortgage – 2 to 5 weeks
If you require a mortgage, the lender will almost always require a survey too. There are rare occasions where they might avoid this by conducting a ‘desktop’ valuation. This might be if you have a very low loan-to-value or perhaps if you are ‘porting’ your mortgage.
Porting a mortgage is when you are taking your mortgage from your existing home and using it on your new one.
However, as we have seen above, your solicitor will need to be on the panel for the lender. This is because, when you take out a mortgage, the bank requires a solicitor to ensure that their ownership (they retain first charge) is in a sound property and legally secure. Please note that although your solicitor acts for you, when it comes to the bank, they are working for the bank and will advise them separately.
(First charge means that when the house is sold, the bank will receive its proceeds of the sale before you do)
Mortgages will almost always take between 2 and 5 weeks to be offered. You should already hold a mortgage in principle document prior to making an offer on a property. This proves to the selling agent that you have the means to fund a purchase beyond that of your savings. Without it, you will find it very hard to have a purchase agreed.
At Rowallan Buying Agents, we can refer you to several fully tested brokers who can arrange this for you.
Lenders will process your mortgage application in one of two ways. They will either initially assess your ability to meet their affordability criteria, which can take up to 3 weeks, and then instruct their survey, or they will instruct their survey at the outset.
The first option is the most common and may seem very slow to your seller. For this reason, you should instruct your lender to proceed immediately after having an offer accepted. As with surveys above, sellers like to see buyers committing to some financial cost to reassure them that buyers are serious.
Step 5 – Legal work (Takes typically 6 to 9 weeks)
There are several actions your solicitor will undertake on your behalf before they can produce a report when you buy a house, which you will receive shortly before exchanging contracts.
Before they begin and possibly alongside onboarding you as a client, most solicitors will wait for the following from the seller’s solicitor:
A draft contract – Usually received within the first week.
This is a document that most likely will follow the law society protocol, but there are others. It will be the basic understanding from the seller’s solicitor of what is for sale and the terms under which they are prepared to sell it.
Assuming you have passed all source of funds checks, some solicitors will choose to wait until they have completed everything before raising enquiries, while others will ask questions in stages as they go. Neither approach is wrong; however, it is helpful to understand your solicitor’s style so you can manage the expectations of the selling agent and their client. Either way, they will need the following before being able to make full enquiries of the selling solicitor.
F&C Form (TA10) (Fixtures and Contents Form)
This form is completed by the seller, outlining what is included in the sale, what is available at an extra cost, and what is being removed). The items included should match those agreed upon on acceptance of your offer and should be noted in either the sales brochure and/or the sales memorandum (see Step 3).
If efficient, this and the PIF should have been completed by the seller prior to selling their property.
PIF (TA6) – (Property Information Form)
This document summarises the seller’s understanding and knowledge of their property. It should, among other things, inform you of who owns the boundary fences, who the utility providers are, and any work they have carried out on the property that required permission.
Searches application – Week one to week 4
There are several searches that need to be conducted to ensure you are fully aware of all risks before exchanging.
Public v Private
It used to be that if you didn’t have a mortgage, it might be more efficient to have a private firm conduct many of your searches for you. This often presented problems with insurance, responsibility for incorrect information, and most mortgage companies didn’t accept them; however, at the time of writing, it is generally accepted that public authority searches are almost as quick and certainly hold more authority.
I do not intend on going into too much detail; however, the basic searches are below:
Local Authority
This will provide information such as previous planning applications on the subject property, any complaints known about, pending transport infrastructure planning that might affect the property and other such information held by the council.
Environmental
This will identify potential environmental risks and hazards associated with the property and its surrounding area. This includes information about land contamination, flood risk, ground stability, radon gas, and proximity to energy infrastructure like power lines or wind farms.
Water and Drainage
This confirms a property’s connection to public water and sewer systems, identifies potential issues like flooding or drainage problems, and reveals the location of public water mains and sewers. It also provides information about who owns and maintains these systems and whether the property has a water meter.
Land Registry (inc. unregistered land)
This search reveals key details about the property, including ownership, boundaries, and any restrictions or charges affecting it. This search confirms the seller’s legal ownership, identifies existing mortgages or other charges, and outlines any rights of way or restrictive covenants.
Enquiries – Week 2 to 9
As discussed earlier, some solicitors will make enquiries as information comes in, while others will save them up and ask all their questions at once. Neither approach is wrong; however, the seller often prefers to see activity, as it reassures them that something is happening.
Beware, though; too many questions over too long a period can also have the opposite effect of annoying sellers.
Replies – Week 3 to 9
In most cases, the selling solicitor will reply to enquiries made by your solicitor within a few days. This may take longer, depending on the information needed. For example, they might need to consult their client, who may not be available at that time.
Often, replies can lead to additional questions, and this process can often go back and forth for several weeks.
Step 6 – Reporting to Client (Weeks 5 to 9)
Once your solicitor is happy that they have gathered all that there is to reasonably know about the property, they will send a detailed report to you. This report is likely to be detailed and long. You should read it and raise any questions on anything that you don’t understand. It is your last chance to raise enquiries prior to exchanging. This is the point at which you actually buy a house!
Step 7 – Contract
The report is likely to be accompanied by a contract for you to sign. Most solicitors will still prefer a ‘wet’ ink copy returned to them although it is becoming increasingly acceptable to have a digital version from companies such as Docusign.
If you have previously been a client of the firm, some solicitors may also be willing to exchange on your behalf, provided they received such instructions in writing beforehand.
Insurance
Prior to an exchange, you should have sufficient insurance coverage on the house. Whilst the seller should also have it insured, you can not be sure that they have it fully covered or even covered at all; therefore, to protect your investment, this is a necessary step.
At Rowallan Buying Agents, we can refer you to several fully tested brokers who can arrange this for you.
Stamp duty confirmation
The report will confirm the amount of stamp duty you need to pay. Mitigation options may be available under certain circumstances. At Rowallan Buying Agents, we can refer you to several agents who can discuss this with you.
Step 8 – Exchange
When your solicitor is ready to exchange and you have agreed on a Completion date (See Step 9 – Removals and Step 10 – Completion), to buy a house, you are likely to need to pay a deposit of up to 10%.
There are circumstances where this can be reduced; however, the liability for the full 10% remains, and sellers are often hesitant to reduce it due to the potential need to go to court to recover any outstanding sums.
If you are in a chain, you might be able to use the funds released to you from your purchaser to cover the deposit on your purchase, but you will probably need to top up to an agreed amount. (At this point I need to be clear – deposits are held in your solicitors clients account and unless with express permission, they are not released to you to spend on other commitments.)
Keep in mind that if you have a high street bank, you probably won’t be able to transfer your full deposit in one day without going into a branch. You might need to do this over several days, or if you visit a branch, you’ll need to bring ID and it’ll be possible to instruct the transfer to happen immediately.
For an exchange to take place, all involved solicitors must be available during the release period, usually by 5 pm on the same day. A ‘release’ occurs when the solicitor at the bottom of a chain is ready to exchange. They ‘release’ their contract to the next solicitor, signalling that they are prepared to exchange.
If there is a long chain, this can often be protracted and fail. Many of the best solicitors will make themselves available on their mobile phones to ensure that it can happen without undue delay.
It is for this reason that at Rowallan Buying Agents, we much prefer to purchase properties with little to no chain.
Step 9 – Removals and Utilities
After exchange and assuming you know your Completion date, you should organise your removals and utilities.
If your Completion date is shortly after your exchange, you should make certain that you are able to find a removal company that is available on the big day.
Rowallan Buying Agents have several firms we can recommend that assist with your packing, insurance, removals, short-term accommodation, and travel. The best firms will help you plan where each piece of furniture should be placed upon arrival and will unpack all your boxes.
Step 10 – Completion
There are two main types of Completion when it comes to purchasing a residential property. A fixed date or a long stop date.
When either party needs some flexibility with their completion date due to personal circumstances, such as tying in a sale with a move, a long stop date can be arranged. There’s no limit to how far ahead this can be, but it’s not unusual to plan around 6 months. Your contract will include an agreed notice period, allowing for an earlier completion.
On Completion, your solicitor will pay the remainder due. It is advisable to have paid your required amount at least a day early due to transaction times or possible faults in the banking system. You might find that if you have a mortgage, your solicitor has drawn down (or requested) the lender’s payment a day early, for the same reasons.
When can you collect your key?
You are likely to find that your contract specifies a time of 2 pm for completion to have happened by. Depending on the length of the chain, this may or may not have happened.
Whilst you are legally entitled to your key upon completion, accessing the property may be delayed.
It’s not uncommon for removal firms to still be packing up after this point, or for cleaners to be getting the property ready. Please bear with this – it’s an unavoidable part of the buying process.
It is worth noting that even though your solicitor might have told you that you have completed, this might mean that they have sent the funds over, but that the seller’s solicitor has not yet received them. You will need to wait until your selling agent or buying agent informs you that they acknowledge that Completion has taken place and that the sellers solicitor has received all due funds.
As a client of Rowallan Buying Agents, we will collect your key for you and bring it to your new property when informed that Completion has taken place.