Buying your home will be one of the biggest decisions you make in life, so you need to ensure you get it right. Now that you have found your dream house and have had the offer accepted, the only thing remaining is the conveyance and moving into the property.
Complete on a house with no chain
No chain’, means the seller doesn’t need to buy another property at the same time as they’re selling their old one, so should be much quicker.
When it comes to conveyancing with no onward chain, the process could be completed in as little as four weeks if all goes well.
While conveyancing can seem like a problem, you can easily do so if you are not purchasing within a chain. Conveyancing is a legal process that allows you to transfer the property ownership from the previous owner to the current owner. Usually, you will hear the term in real estate as it involves exchanging legal documents such as a contract, lease, title, or even a deed. In this document, it will clearly state the amount that you have agreed on with the seller, the price, as well as the date of the transfer. Additionally, it will also contain the obligations and responsibilities from both sides.
The Conveyancing Process
While every property purchase may be different, there are a few things that are involved in the regular conveyancing process. Let’s take a look at these steps.
- Instructions to the Solicitor
When you choose to sell or purchase property, you should send out instructions to the conveyancer for assistance in the process. It is always easier when you have these experts with you so that once you get a property, you can get right into it; there will be no wait at all. Usually, these professionals will open a file and send out their first client care pack and charges in readiness to the sale’s closure. They then confirm all the necessary information for the process.
- Enquiries and Searches
Your selected solicitor will then get a contract and copies of the legal property title. The next step is to raise enquiries and searches regarding the property and confirm whether all things are in order. Some of the most common clarity points to be on the lookout for include the property alterations. The searches will follow to determine whether any adverse matters may affect the usage of the property. Some of them could also be aspects that affect the lender’s decisions on the property. Depending on the location of the property, your lender may require you to have the search performed.
- Mortgage and Security
After the enquiries and searches, your next step is securing the mortgage. Your lender will receive the information from your solicitor and confirm the legitimacy of these details. The lender checks whether all the details are precise and the viability and amount of mortgage you are eligible for. For their benefit, the lender will also assess the property to know whether the agreed sum is worthwhile. It is a necessary measure to secure your mortgage. During this time, you may also involve a surveyor to help you get more checks to this house before making your final decision.
In most cases, the lender may require the conveyancer to work on their behalf in getting the checks in line with the required conditions and terms. Usually, they are included in the lender’s offer. The conveyancer will require your assistance in fulfilling these conditions. They mostly require you to provide the information and documentation for the property. As a client, you must understand that all these conditions must be fulfilled before the lender can release
- Contract Signage
Before you can exchange the contracts, your conveyancer will require that you sign all the required documents. These documents include; the seller’s property information form, the fixtures, fittings, and contents forms, title information document and plan, mortgage deed, and the transfer for signing. They may also require that you get a report confirming all the property’s major points and the contract. When all these enquiries are made and everything completed, you can sign the contracts.
- Contract Exchange
When the conveyancers in the entire chain have all their finances and searches in order, the replies to enquiries, signed documents and funds, they will then authorise the exchanging of contracts. All the parties involved will agree on a mutually accessible and completion date for all the processes for this to happen.
Before the entire process completes, the conveyancer will perform all the necessary arrangements such as arranging for funds and completing the final searches. The money is usually transferred on the completion day and the time mostly depends on the number of people involved in the chain. Usually, it is between 10:20 am, and 5 pm and the keys are later picked by the real estate agents to be taken to the new owner.
What is a Chain?
In the conveyance process, we have mentioned the term ‘chain’. So, what is a chain? A chain refers to a series or house purchases. All these purchases are dependent on each other so that if one fails, then the entire chain fails. Usually, the chain will involve the person you are selling your home to, and the person you will be buying the property. If you are in the chain, you may have to wait until you sell your property in order to purchase from the other party. The transactions are bound by the chain.
How Does a Chain Slow Down Conveyance?
Since a chain involves lots of people, it may pose potential dangers to the property transaction. Here are some problems that can slow down the conveyancing process. If one party withdraws their offer to purchase or decides to take off their property from the market due to:
- A bad property valuation survey
- A change in personal circumstances such as sickness or redundancy
- A difference in the expected charges such as the leasehold property fees
- The mortgage company denies them funds for the transaction
- A change in mind in the process
- They may also get another offer during this time
The biggest issue with property chains is that one transaction affects the entire process. If one party chooses to take their house off the market, you as the buyer will have to begin another house hunt, and this derails all his plans. In a chain, every decision made affects every person involved; the effects can be frustration. These are the primary reasons why most buyers will avoid getting into a property chain. As you make your first home purchase, you may want to consider a home that doesn’t have any chains to avoid inconveniences in the process. Alternatively, if you find a property that you like but is in a chain, you can first move into rented accommodation and become a chain-free buyer.
How long does the process take without a chain?
Completing the conveyance process may take between six to twelve weeks when it is in a chain. However, the process is much more straightforward without a chain and could complete within the first four weeks. Buyers must understand that most properties are chain-linked since they are marketed by real estate agents and listings. While this is the recommended time for the process, a few factors may affect the speed. Here are a few of them.
- Lack of complete information on the house title or deed
- Problems with the mortgage
- Slow approval from the lender
- Surveys taking too long
- Delay in the searches
- Uncertainty in ownership
How to Improve the Speed in the Conveyance Process
Conveyance can be a little hectic, and you may not foresee the problems that may arise. Nevertheless, there are several things that you can do to enhance the speed of the process. In this section, you will get to learn the tips that are most essential to improve the speed.
Get Your Paperwork Organised
Selling or purchasing property requires the exchange of documents and signing contracts. To make the process even easier, you should have all these documents organised and clean. They are instrumental in showing proof of ownership as well as the condition of the property. These documents include the agent agreements, purchase agreements, amendments, seller disclosures, home inspection results, title insurance policy, and lease agreements. Get all these documents ready for the house transaction.
Respond to all Your Messages and Requests in Good Time
Having your property listed is one thing and getting clients is another. After the listing, you need to keep checking your emails and phone numbers for any messages and calls. There may be potential buyers who want to view the house. By responding promptly, you show the client that you are committed to selling the properties.
Research on a Conveyancer
Getting a conveyancer should never be a problem. You should first check their experience and knowledge to ascertain that they can handle the specific tasks. Once you narrow down to three professionals, you should check the reviews posted online concerning their services. Positive reviews will always imply that they are reputable, while negative reviews imply otherwise. Before they begin the process, ask for their licensing and credentials for a quick legitimacy check.
Get a House with no Chain
While houses with chains are the most popular in the market, you should strive to get a house without a chain. It reduces the conveyance processing time and makes the hassle all easier.