Money News Feature

Top five things you should know about conveyancers and conveyancing

Updated: Tuesday 29 November, 2011

By Martin Fagan

If you’re about to buy a house, you will need to look into getting yourself a conveyancer to help you with the transaction - but how do you pick one?

As soon as you place an offer on a property, your estate agent will ask for your conveyancer's details to pass onto the seller's conveyancer.

To avoid having to make this important decision in a rush, it's wise to establish contact with a professional conveyancer even before you start looking for a property.

• 1. What is conveyancing?
• 2. What is a conveyancer?
• 3. What to look for in a conveyancer?
• 4. How do I find a conveyancer?
• 5. How much do they cost?

What is conveyancing?

When it comes to buying and selling a property, the term conveyancing is used to denote the legal process involved with the transaction.

There are two major points to this process:

1. Exchange of contracts whereby equitable title passes (which means you can live in and “enjoy” the property you’re buying)
2. Completion whereby legal title passes (which proves you actually own the property).

Conveyancing therefore is hugely important and usually happens in three stages - before contract, before completion and after completion.

It takes on average 10–12 weeks to complete a conveyancing transaction, but while some transactions are quicker, many take longer.

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What is a conveyancer?

A conveyancer is the generic term given to someone who handles all the legal work involved with the buying and selling of a home.

This person will essentially be a solicitor or a licensed conveyancer - a solicitor who specialises in property.

It is the conveyancer’s job to:

• do all the legal paperwork
• deal with land registry and local council searches
• draft the contract
• sort the stamp duty
• handle the exchange of cash between parties.

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What to look for in a conveyancer?

There can be huge cost differences between different conveyancers, so ensure you compare the market.

Picking a firm that specialises in conveyancing - or at least a solicitor that has a specialist department - is often a good idea.

This may be more expensive, but if you encounter any issues along the way, a specialist conveyancer will be much better placed to deal with them.

Also, try not to select the cheapest conveyancing firm just because you're in a rush.

The cheapest companies tend work in bulk and can be slower; so, if time's an issue that can be a problem.

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How do I find a conveyancer?

As with most professional services, the best way to find a conveyancer is by word of mouth or referral.

So the first thing to do is ask around your friends and family to see if they have any recommendations.

Alternatively, you could ask your estate agent, but be warned they will probably recommend someone because they will receive a commission for doing so. That doesn’t mean you shouldn't ask them - if nothing else, you can always use their quoted price as a benchmark.

Another route is to ask your mortgage broker. They will probably have ties to conveyancing firms and might be able to offer some quality firms for discounted prices.

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How much do they cost?

The cost of conveyancing varies from place to place and also by the complexity of the transaction to be undertaken, so it is important you take the time to hunt around for the best and most affordable firm for you, which you can do by comparing quotes.

In general however, some legal advisers will quote you an “all-in” fee for the whole transaction.

Others might charge an hourly rate. If an hourly rate is quoted, make sure you get an estimate of the number of hours they expect to work.

You will usually be charged for the conveyancer's time, phone calls, letters and faxes, and their indemnity fee - which covers you should you incur any loss due to the conveyancer.

They may also state that if any unforeseen problems arise they will be dealt with through an extra charge.

For a property costing £100,000, you should expect to pay about £570 in total fees.

However, the cost will also depend on whether your property is leasehold or freehold. Leasehold properties will cost more as they involve additional work checking the lease, but certain types of freehold - such as a “flying freehold”, where one freehold underlies or overhangs another freehold - will complicate matters and will add to the overall fee.

Most conveyancers will ask for payment of Land Registry and local authority search fees in advance. The balance will be due when you've completed on your home, or may be added to your mortgage if that is an option.

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