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Archive for the ‘Conveyancing Laws’ Category


The Difficulties Of The Conveyancing Process When Property Part Of Probate Sales | Sunday, April 1st, 2012

When considering the conveyancing process, one of the difficult areas for both the solicitors instructed to complete the conveyancing process and the individuals concerned, is when the property has been left in a will. The sale of this property by the individual is called a probate sale and it may come about for a range of reasons. The beneficiaries of the will may have been given the property between them and want to split their money evenly, they may already have a house and not want the hassle of a second one or they may just simply wish to free up the capital from the property. Whatever the reason for the sale, choosing a helpful and competitively priced solicitor to take care of the conveyancing process for you is essential to ensuring the transaction runs smoothly.

 

It is not uncommon for those looking to purchase a house and commence the conveyancing process to find that the property is owned by a man or woman who has passed away, and the property is being sold by the executors of their will. This changes the conveyancing process as it adds certain things onto the original aspects of the conveyancing process. For example, the solicitor responsible for the buyers conveyancing process will be required to obtain a copy of the grant of probate. Usually part of the conveyancing process that is performed by the solicitor involves registering the property with the land registry under the new owners names, but without a copy of this grant of probate the land registry will not allow this transfer.

There are benefits to purchasing a property from an individual who has passed away (or more accurately, purchasing it from the executors of their will). The main advantage is that the buying and conveyancing process can run a lot quicker and smoother as their is no chain, i.e. they are not waiting on the homeowner to move out or relying on the homeowners successful purchase of another house. However, there can also be disadvantages. On hearing a will, many beneficiaries will then begin to advertise the property for sale before they have actually obtained a grant of probate – which can understandably effect the conveyancing process and slow down the whole conveyancing process until it is obtained.

 

The conveyancing process and solicitors are not exactly well known for their speedy nature as it is, so a complication such as an unobtained grant of probate may make the conveyancing process even harder. Equally concerning, many solicitors commence the conveyancing process on behalf of clients having quoted an hourly rate – complications with regards to getting hold of the grant of probate may not only slow the conveyancing process down but may well end up resulting in higher charges.

 

The grant of probate is a document issued by the probate registry and as mentioned above, can have a big impact on the conveyancing process. For this reason it is always advisable to enquire early on in the conveyancing process or when considering making an offer on a property whether or not it has been obtained.

What you will need during the Conveyancing Process | Saturday, July 17th, 2010

If you are a seller who is preparing their house for the buyer you will need to consider collating the information required for the conveyancing process. This is basically all of the information about the house as it applies to any outstanding mortgages or monies owed, the forms required for the conveyancing process and information required to draw up the contracts that are going to be required to transfer ownership. Of course you will also need your deed of ownership that stipulates that you actually own the property and have the right to sell it. This may not seem like a great deal, but when you break it down it is easy to see why it takes so long to go through the conveyancing process as any information that applies to the house is needed in order to finalise the sale.

It is wise to start by getting together the easily obtainable information. You probably have (or you should have) the title deed for the house locked away safely in a filing cabinet. The solicitor that oversaw the purchase of the property should also have a copy of this in the event you can’t find it. This should be step one of the conveyancing process – ensuring you have a copy of this document. Next, get any information that you have conglomerated while having the property on the market. This will include things such as surveyor reports, real estate documentation and things that specify what the house is worth and why it is worth the amount that has now become the sale price. Alternatively, you might have been made an offer. Get this offer in writing and include it in the documentation.

If your property is mortgaged you will require some information from the bank. Get all of the information that you can as it relates to the current mortgage status. You will also have to let the bank know the particulars of the potential buyer to ensure they can allow them to take over the mortgage. If you are using the proceeds from the sale to finalise the mortgage, you will have to let the bank know. There may be a fee for paying the mortgage outright. After all of this and you have managed to get the basic information together you can start filling out the forms required to kick start the conveyancing process. I won’t detail all of the forms you will require here. You should consult a conveyancing firm from this point onward.

What is Conveyancing? | Saturday, July 17th, 2010

Conveyancing is designed to protect both parties (although it is most beneficial to the buyer or receiver of the title) in the event of a transaction relevant to the exchange of a land title. It can be a drawn out process that ensures that the buyer has the right to sell the title to the land and that there is nothing to suggest that the land is acceptable for resale at the behest of the buyer. It is also a formality for banks or lenders in the event the land is to be bought via a mortgage or long term loan. This ensures that if the person borrowing the money neglects to pay the money back – the banks have some option in regard to reselling the property to get their money back.

Other important reasons for conveyancing includes drawing up the relevant contracts for the buyer and seller that stipulate the terms of the sale. This is to ensure that the buyer is given the right to do with the land what they wish. If no agreement is made during this process it gives the buyer and the seller the opportunity to back out of the deal before anything is signed. The conveyancing process is a necessity in that it ensures a transparent means of equity transferral. Because purchasing land is a major expenditure on the part of the buyer, there needs to be a system in place that records all of the details of the exchange in order to allow the buyer and seller come to an adequate understanding as it applies to the deed of sale.

Conveyancing is also relevant in regards to the transferral of any mortgages or monies owed on the property that is being sold. As conveyancing is more akin to facilitating the transfer of equity from one person to another, a person may opt to take over the mortgage or loan repayments on the property if they are still outstanding. Because of the large time frame in which the process is undertaken and the many variables involved in the undertaking of the process, it is not a simple task. This is compounded by any outstanding loans of mortgages on the property as it will require a bank to sign off on the transfer of the loans. It is important that people who require this form of transfer deal with a buyer that has a clean credit history in order for the bank to allow the process to continue.

Watch Out For the Conveyancing Pitfalls | Saturday, July 17th, 2010

If you have a property you wish to buy or sell you will have to take a trip down the road of conveyancing. The first pitfall you can avoid during this process is not relying on the person who is responsible for the conveyancing component of the transaction to give you any warning regarding the structural integrity of the property or the properties real value. This is best left to a professional engineer or real estate expert. However, if you have hired a surveyor to give you a proper value estimate of the property and they have indicated that work will need to be done in order to actually adhere to the asking price then you can have an expert approach the real estate with alterations to the pre-sale contract that stipulate a reduction in the cost of the property. Having a surveyor inspect the property will also protect you from a bad investment. If the property requires too much work than a mortgage broker, lender or bank will refuse the application for a mortgage.

If you require the services of a solicitor in order to take care of the conveyancing aspect of a property sale, ensure you have knowledge of all of the fees and charges that will be incurred throughout the process. It may come as a shock when you are given a bill for every contract that requires your signature. Conveyancing requires a lot of paper work. Ensure you know what you are paying for. If you are doing the conveyancing yourself then you will be less worried about the fee aspect of the process and will be more worried about doing the right thing at the right time. Do your research; make sure you understand the jargon that is likely to be splattered throughout every contract that crosses your desk. If you don’t understand what you are reading then you are likely to make a grievous error that can cost you a lot of money.

If you have employed a solicitor to conduct the conveyancing tasks for your then make sure you keep an eye on what they are doing. If you get some knowledge of how the process works you might not require their services next time you wish to buy or sell a property. Keeping an eye on what they are doing might also keep you safe from any extraneous fees that the solicitor taps on to the cost of the process when it has been finalised.

Conveyancing – A Brief History | Friday, July 16th, 2010

Conveyancing as a means to finalise property sales and equity transferral has a fairly rich heritage. Although aspects of conveyancing are hundreds of years old – modern as we know it has been refined through a series of reforms and improvements in how the process works. One of the most influential conveyancing reforms involved standardising the process in regards to having firms following the same guidelines and using the same forms in order to ensure that procedures were pushed through the system quicker to allow both the buyer and seller to agree on specific conditions of sale. This reform was pushed through in 1925 and since then there has not been a lot that has changed in the industry besides minor reforms to help expedite the process and protect both the buyer and seller.

However, reforms have opened up the door for a few shady practices. These include (but are not limited to) gazumping and gazundering. Although these practices are reliant on how the real estate market is functioning – they have taken precedence after specific reforms have been introduced. However, because the speed at which processes is now performed (they are still slow), the risk of gazumping and gazundering is more prevalent than it was prior to specific reforms. Further reforms are forthcoming which are aimed at reducing this practice so that it becomes a thing of the past. Although, these reforms may take years to push through as a legal basis for how conveyancing is practiced. As with any reforms that threaten to shake the industry up and change the way things are done – it takes time for changes to become adopted by the mainstream of the industry.

Online conveyancing solutions have now started to penetrate the conveyancing market. It is important to note that not all of the bugs associated with electronic conveyancing practices have been ironed out. However, as more and more people opt to use electronic methods; the more refined the process will become. This is a relatively new method implemented to help reduce the time and costs associated with conveyancing. It is also important to note that the process is looked upon favourably by banks and lending institutions as it allows them to process conveyancing applications as they apply to financial issues in a timely and accurate manner. Because all of the information is centralised and submitted electronically, it allows for a quick turnaround in any processing that is required.