Last Updated on November 29, 2022 by Mamoona Mushtaq
Are you looking to sell your house or other property? If yes, get ready for many financial transactions, documentation, and legal processes! Property selling can be overwhelming, especially if you don’t have basic knowledge about real estate.
Most property owners opt for conveyancing services to get the job done by a legal expert. Still, they should have a basic understanding of how the conveyancing process works while selling a property. For your help, we have mentioned the top things you should know before closing a property deal. So, let’s have a look.
Key Things To Know Regarding Property Selling Process
Types of Home Titles
Home titles help us to understand property ownership. They are of two types: Leasehold and Freehold.
The individuals with a freehold title have full-fledged ownership of the property. On the other hand, the leasehold property is returned to the respective governing body after a certain duration. The lease period can range from 6 months to 99 years.
Overview of Conveyancing Process
The process starts when the buying party hires a conveyancing solicitor to manage the deal. Afterwards, the conveyancer facilitates some checks & verifications from the seller and performs research on a personal level.
Besides, the buyer has to provide the asked details, such as title information, lease duration, etc. Furthermore, the conveyancer clarifies whether the property selling party has a leasehold title or freehold.
Role of Caveats
The buyers can protect their property interests with the help of a caveat. After the deposit is made, they can exercise their right to execute a transactional agreement regarding the property. Additionally, the banks can lodge a caveat to protect their rights, at the time of sanctioning the mortgage. With a caveat, the buyers ensure that no other parties are claiming authority over their property.
Verifying Details of Property Ownership
This step is performed when there is more than one property owner. Multiple ownership of the property is of two types: Joint Tenants and Tenants-In-Common.
● Joint Tenants
Joint tenants have equal ownership of the property, irrespective of how much they have contributed while purchasing a property.
Every member holds a different percentage of ownership in the property, depending upon how much they invested at the time of purchase.
Ensuring Good Root of Title
Having a “good root of title” means the respective property’s title doesn’t have any sort of issues. Until the problems with the property title are resolved, the deal can’t proceed further. An example of a potential issue is the difference between the mentioned and actual dimensions of a property.
When the deal is finalised by the buying party, the conveyancing solicitor has to send the property reviews to the required government authorities. This way, the respective government bodies know in advance that a property transaction is going to be completed in this specific area, on this date and time.
Paying The Seller
After the successful initiation of the caveat, the remaining funds to complete the deal are exchanged. The buyer hands over the down payment and the conveyancing amount to the respective attorney. Afterwards, the attorney transfers the funds to the selling party. The funds are exchanged between the seller and the buyer with the help of an escrow, until the completion of the transaction.
Taking The Possession of Property
Once all the formalities are complete, the selling party transfers the property rights to the respective buyer. In some cases, the property owners agree on transferring the house possession along with the furniture and other items. While some owners prefer to sell vacant property to buyers.
Whatever your choice is, avoid leaving irregularities and loopholes in documentation or legal formalities, otherwise, the selling process will be delayed. Afterwards, the buyers perform a property inspection and make sure that there are no underlying problems. Additionally, they receive things like the transfer form, title certificate, and the property’s keys. It indicates the completion of the purchase of the property.
Mortgage Repayment in Advance
There is a possibility that you owe the mortgage repayment fees. Most people forget about these pending charges, which causes a problem in the deal even after its completion. For this reason, a conveyancing solicitor regularly checks the mortgage status to make sure there are no such dues, saving you from paying a penalty.
Benefits of Hiring A Conveyancer For Selling A Property
With the help of the above points, one can have a basic overview of the property selling process. Now, let’s check out how opting for a reputable conveyancing service is beneficial for the owners:
● Manage Documentation Efficiently
A conveyancing lawyer prepares and manages all the legal documents required for selling the property. Moreover, they cross-check the paperwork to ensure everything is in proper format and error-free.
● Dealing With Real-Estate Agents
Selling the property involves discussing and negotiating various things with the respective real estate agent. However, the agents can easily exploit your lack of knowledge to convince you on things that are not beneficial for you. A conveyancing solicitor negotiates with the buying party on your behalf to make sure you stay in a profitable state while closing the deal.
● Finalise The Deal
A conveyancer not only guides you throughout the property trade process but also makes sure the deal is successfully closed. From the initiation of the process to the exchange of property keys, a conveyancing lawyer is always there to help you.
Property selling is a tedious task for the ones who are not associated with the real estate industry. For this reason, opting for a conveyancing service is the best solution to effectively close property deals without any issues. After going through the basic overview of how conveyancing works while selling a property, you can make things easy for both you and the solicitor. Because you can always have an idea about what is going on, at every stage of the deal. It considerably eliminates confusion and facilitates a faster completion of the property selling process, which benefits the seller.