Having selected a suitable location for your first rental property and after getting your offer approved by the seller, the next step is how to manage the transferring process, the conveyancing. It means the legal transfer of ownership from your seller to you. This process will guide you on how to become a landlord of an income-generating source.
Who should be the conveyancer?
Only a professional and trustworthy conveyancer can accomplish this task to your satisfaction. So, be very much vigilant when deciding about a conveyancer. Your solicitor may prove a good conveyancer as well. You yourself may also attempt to be a conveyancer as long as you are not dealing with a mortgage. Just to guide you, an online conveyancer proves cheaper than a local branch. Being a landlord, it is you who will decide the conveyancer.
The first step about conveyancing: formation of a draft contract
Once you have decided who your conveyancer will be, there will be formed a draft contract mentioning the charges and the required deposits. It will also include the terms of engagement with you. A copy of this very draft contract will be asked by your solicitor from your seller’s counterpart along with the property title, the standard forms, and other information.
The second step: the examining of the contract and the filled forms
Having examined the draft contract and the other supporting documents, your solicitor will raise questions and inquiries from the seller’s solicitor. You will also support this process by closely examining the forms filled by the seller and letting your solicitor know if you have some confusion in this regard. The most important point in this regard is to check whether the proposed property is leasehold or freehold. Be careful about the tenure if it is leasehold and check the things yourself for sure. Leases less than 80 years are hard to extend whereas those under 60 should be best avoided.
The third step: a number of searches from the conveyancer
Your solicitor will advise a number of searches are done apart from those which your conveyancer will do by himself. The overall searches in this respect are:
- Verification of the title name and the title plan at the land registry.
- Search for the local authority plans.
- Search for the water authority.
- Checking the flood risk.
- Noticing for the chancel repairs.
- Search with respect to the environment.
- Location specific searches like noise abatement zones, public paths, pipelines, common land, etc.
The cost for all these searches is definitely charged as extras and must be taken into consideration while deciding about the conveyancing fees.
The fourth step: verifications required before signing the contract
Your solicitor will check or verify whether:
- All the objections and queries have been satisfied.
- All fittings and fixtures are intact as per your expectations.
- Both the parties have agreed upon a completion date.
The fifth step: exchanging the contracts
Once the contracts get ready after the thorough examination and verification, you and your seller will agree on a date to exchange the contracts through your solicitors. On the completion of this step, both the parties are legally bound to fulfill the commitment. Otherwise:
- You will lose your deposit or even more if it is less than 10% if you do not complete the purchase.
- The seller is bound not to accept another offer.
- The seller will have to sell it to you or you are entitled to file a case against him.
The sixth step: lodging an application to the land registry
Before the completion day, your solicitor will lodge an application showing interest in the property so that all deeds on that property may be frozen for the next 30 working days. These days will allow you to pay your seller and lodge another application from your side to transfer all the deeds into your name. You should also pay your balance towards your solicitor at least one day before the completion process.
The seventh step: the completion day
This is the day when you and the seller complete the deal. Before this day, your seller will confirm that he has received the full payment. After the completion process is over, the seller is supposed to drop the keys at the real estate agents. It means that you are now free to collect the keys and move to your new property. Your solicitor will send all the documents to the Land Registry and you will receive your legal documents almost twenty days after the completion.