Property conveyancing - frequently asked questions

Our team can help you navigate the property purchasing process with confidence.

Can a solicitor act for both the buyer and the seller?

There are very limited circumstances when the same firm of solicitors can act for both the buyer and the seller. The Solicitors Regulation Authority Code of Conduct 2011 (SRACC 2011) sets out a number of strict rules in connection with the proper handling of conflicts of interests between clients. A firm must never act where there is a potential conflict or a significant risk of conflict. This is to ensure that the solicitor only acts in your best interest. Tees has a dedicated compliance team who regularly assess the potential conflict of interest in matters on which we are instructed.

Can a solicitor act for my bank as well as me in a transaction?

The Solicitors Regulation Authority Code of Conduct 2011 (SRACC 2011) suggests that a firm should only act for both the lender and the borrower in the following circumstances:

if the mortgage is on standard terms
it is able to act in the client’s best interests
the certificate of title required by the lender is in the form approved by the Law Society and UK Finance.

It is essential that there are no potential conflicts of interest.

Does a solicitor need to have the deeds to a property if I want to sell it?

If your property has been registered at the Land Registry, a record of ownership is filed digitally online and this can be downloaded. If they are available, it is always helpful to have the deeds as they may contain useful information that may not have been registered. However, if the property is unregistered a solicitor will always need to see the physical title deeds to establish proof of ownership.

How much deposit do I need to exchange contracts?

10% of the sale price is usually required on exchange but in certain cases, for instance where a 95% mortgage is being obtained a 5% deposit will be acceptable. However, please note that if you exchange contracts, and do not complete when required under the Contract, the balance of the deposit of up to 10% will still be payable. If a 100% mortgage is being obtained then it would be usual for exchange of contracts and completion to take place on the same day rather than to proceed with no deposit. If you are moving house, the contracts will usually provide for you to use the deposit received from your buyer to pass on to your seller. The price of the respective properties will need to be considered however and an amount to increase the deposit on a more expensive purchase may be necessary.

What is Stamp Duty Land Tax?

Stamp Duty Land Tax (SDLT) is a form of tax which you may be required to pay if you buy, a property or land in England. The amount due (if any) will depend on the purchase price. If the value of the transaction is over £40,000, you will be asked to complete a SDLT return even if no tax is payable. This return will need to be submitted to HMRC, together with the amount payable within 14 days of completion, otherwise you will be liable to pay a penalty fee. Your solicitor will be able to file the return on your behalf. If you own property which you are not proposing to sell at the same time as purchasing another property an additional surcharge and higher rate of duty is likely to be payable. There are different rates for first time buyers (also with relief available on certain amounts) and those purchasing properties who currently live abroad.

What searches are involved in conveyancing?

We recommend that as standard Local Authority, Drainage and Environmental Searches are undertaken. Depending on the location of the property additional searches, such as coal mining, may be required.

Do I need an Energy Performance Certificate for my property?

An Energy Performance Certificate (EPC) is required by law when a property is built, is being sold or rented out. There is a duty to commission an EPC before the property is put on the market. It shows information about the energy efficiency of a property, including the property’s energy use and typical energy cost. The certificate also provides an energy efficiency rating from A (most efficient) to G (least efficient) and is valid for a period of up to 10 years.

There are certain types of property which are exempt from needing an EPC. These include those which do not have a roof or do not have walls, those which use no energy to condition the indoor climate, religious properties and buildings earmarked for demolition.

Should I have my property surveyed before renting or buying it?

Having a property surveyed before buying or renting is highly advisable. It can give you a good idea of the condition of the property and highlights problems which you may otherwise not know about. You should not rely on a valuation undertaken by a mortgage lender as that is specific to them and only confirms if the property is worth the amount being borrowed. You are not able to rely on the content of these valuations.

Are there any risks in buying a property at auction?

There are many risks that come with buying a property at auction. If the property seems like a bargain, there is probably good reason for it. It is strongly recommended you ask a solicitor to check through the legal pack in the weeks leading up to the auction date, as well as getting a survey done in case of structural or other issues. You should be conscious of the fact that on the ‘fall of the hammer’, exchange of contracts takes place, which is a legally binding contract between the buyer and the seller. This is often misunderstood. You will be committed to proceed with the purchase in accordance with the terms of the contract, if your bid is successful. If you require a mortgage for the auction purchase you should ensure that an offer is agreed in principle before bidding on a property. There are also modern auctions which are different to traditional auctions and have different requirements. If you intend to buy a property at modern auction please speak with us as early as you can in the transaction.

Is Land Registry legal proof of ownership?

The Land Registry is considered to be conclusive evidence of ownership of a property. This means that the person or entity listed as the owner in the Land Registry is legally considered to be the owner of the property, and their ownership rights will be recognized by the government and courts. However, it’s worth noting that this may vary depending on the jurisdiction, and in some cases, additional legal steps may be required to establish ownership.

How long does a transaction usually take?

This can depend on a number of factors but on average a transaction takes between 6-8 weeks with leasehold transactions typically taking longer.

Is there a specific timescale required between exchange of contracts and completion?

No. You can exchange contracts and then complete at any time but the completion date will be fixed on exchange. The exception of this is when a property is yet to be built, ie a newbuild, where completion may take place in accordance with a notice served by the seller that the property is structurally complete and ready for occupation. The length of time between exchange and completion can also depend on whether there is a mortgage involved as lenders have different requirements for the amount of notice for drawdown of funds to be given.