If you are looking to buy land for the first time, the process can be quite stressful. A conveyancer can help simplify the process for you. The following article looks at how conveyancing works.
What is Conveyancing?
This is the transfer of land ownership from the seller to the buyer. Conveyancing can either be done under a registered or unregistered system. According to the registered system, the local authorities maintain a register of the land being bought and the land registry has to be notified when there is a change in ownership of the land. According to the unregistered system, the seller proves their ownership by presenting documentary evidence to the buyer.
The Process Of Conveyancing
A conveyancing transaction involves three stages:
- Pre-contract stage
- Post-contract stage
- Post-completion stage
In the pre-contract stage, you will retail a lawyer to act on your behalf. This stage will include the following steps:
- The seller's lawyer prepares a pre-contract package to be handed to the buyer. This includes a draft contract, proof of his/her legal ownership of the land through a title deed and results of searches related to the land.
- Your lawyer will go through the pre-contract package and address any questions or requests, also referred to as requisitions. Your lawyer will ask the seller to address the issues he/she has raised.
- Your lawyer conducts pre-contract searches. These searches will be conducted with public bodies such as the local authority. The aim of these searches is to gather as much information as possible regarding the land.
- You need to confirm whether you are financially able to cover the transaction. This entails securing a pledge of finance.
- When amendments to the draft contract have been negotiated, your lawyer will hand the contract back. Two print outs of the contract will be obtained--the seller will sign one copy and then you will be required to sign the other.
- The exchange of contracts means that a binding contract is created. On exchange, you will be required to pay a deposit.
In this stage, your lawyer will create a draft purchase deed. Once the seller's lawyer approves the deed, the contract is activated and a copy of the purchase deed will be made and signed by both parties.
Your lawyer also has to obtain a mortgage loan from your lender. Your lawyer should obtain the money for the remaining balance that should be paid on completion of the transaction. The money is handed to the seller's lawyer and in return, he/she sends the deeds to the land to your lawyer.
After the land deed is delivered, your lawyer is required to pay stamp duty or land tax that is due on the land. They must also apply to the registry of lands in order to register the title.
For more information, contact a firm like KJB Law.