There seems to be a disconnect between what the parties want to happen, and how quickly, and what the Conveyancer needs to do, and how long that takes. With differing viewpoints it can be tricky but all parties need to work together to achieve exchange and completion.
Conveyancing will always be contentious and stressful for those involved. There are so many parties and each will be coming from a different place and have their own focus. This can lead to frustration.
But what in particular could Estate Agents and Sellers do to help the Conveyancing process?
MEMORANDUM OF SALE
The Memorandum of Sale confirms the Sellers and Buyers names and addresses. It sets out each Conveyancer's contact details, states the price and any fixtures, fittings and contents included. To avoid queries it is vital that correct names and addresses are shown. Errors in the Memorandum result in the Seller’s Conveyancer issuing an incorrect contract. Enquiries will be raised and contracts must be redrawn. As ID checks may not be concluded at this point the Conveyancer is relying on the details within the Estate Agent’s Memo. Estate Agents are regulated and check and hold identification the same as Conveyancers. A comprehensive Memo, with parties full legal names, will avoid errors and unnecessary enquiries. Any duplication of work adds to the time it takes to reach exchange and completion.
PARTICULARS & BROCHURE
The Sales Particulars are a brochure with photos and a floor plan. It lists the number of rooms and main property features. Providing this to both sides ensures they are aware of alterations and additions. It should also show the EPC rating (energy efficiency). If the EPC is out of date then it must be renewed. EPCs are valid for 10 years. An accurate Sales Particulars will save time and avoid unnecessary queries about alterations at the property. Remember that the Conveyancer does not go to the property but is required by lenders to ensure that it has all necessary Planning Permissions and Building Regulations.
VALID EPC
Energy Performance Certificates are valid for 10 years. It saves time if the Estate Agent asks the seller to arrange for a new EPC where it has expired. To confirm the EPC status you can check this online in the government EPC register:
FREEHOLD OR LEASEHOLD
Leaseholds are far more complex and time-consuming than Freeholds. They result in even more parties being involved in the Conveyancing process and this means delays. It is not always obvious that a property is Leasehold. Overlooking this results in delays down the line. You can have Leasehold houses. You can also have Freehold houses with communal areas maintained via Service Charges by a Management Company. These, like Leaseholds, involve a Management Pack and it takes time for the Management Company to collate the information for the pack.
GETTING MANAGEMENT PACKS
Make sure the Seller contacts the Management Company and Freeholder to order the Management Packs. This may also be referred to as a form LPE1. There may be two packs. One covers Ground Rent and the other Service Charges. They also include post completion and Land Registry requirements and detail various fees and Notices required. A Buyer will be unable to have the Property registered in their name if they don't jump through the Management Company’s post completion hoops. The Buyer's Conveyancer will insist on having the packs and they can take months to arrive. Get them on order as soon as possible.
Even with Freehold properties there can be a Service Charges for maintenance of communal areas. Councils no longer adopt these and they are not covered by Council Tax on newer Estates. Again a pack is needed and should be obtained as soon as possible.
PROPERTY EXTENT
Property can be registered at Land Registry under several title numbers or parcels of land. This could be one parcel of land for the house and another for the garden. If the Seller mentions anything about acquiring an additional piece of land advise both Conveyancers. If this is missed it means the Seller's Conveyancer could be unaware when issuing the Draft Contract Pack. Consequently the Buyer's Conveyancer will receive a defective Draft Contract Pack and order searches that do not cover all of the parcels of land. A second set of searches will be required and the Buyer will pay twice for searches. This additional expense, and time, tends to cause frustration. Search results may take 7 to 10 working days to arrive. In some cases it can take longer. During Covid searches took several months. It really depends on the local authority involved and/or the search agents used by the Buyer’s Conveyancer.
ID CHECKS
Estate Agents are regulated and required to obtain satisfactory ID so why not provide this to the Conveyancer to speed matters up. Buyers and Sellers are often frustrated with having to provide ID over and over again. For valid ID ensure you meet in person, see original documents and that you verify and have adequately stamped and certified the copies of ID. Provide the verified ID documents and your electronic AML checks as soon as possible. This will be incredibly helpful to the Conveyancer and cut time taken for regulatory compliance. It also means less repetition for the Sellers and Buyers. Why do this with the Estate Agent, lender and Conveyancer separately.
ATTENDING THE PROPERTY
Remember that neither Conveyancer will attend at the property. If there are obvious alterations then address these with all parties to ensure structural guarantees, invoices, warranties, planning permissions and building regulations are forthcoming. This avoids delays and queries having to be raised. Planning Permission and Building Regulations are two different things and you may need both. If you have one, but not the other, this could be a problem.
PROBATE
If the Seller mentions Probate being required or that they are selling on behalf of a deceased family member, check that they already hold the Grant of Probate. Probate applications can take more than six months for the Government to complete. Delay and frustration ensue.
HOUSING ASSOCIATION
Housing Associations often have buy back or consent requirements. The buyer may need to be approved by the Housing Association. This causes delays as it is often missed during the early stages and results in problems later on. There could also be age restrictions if the property is a retirement complex.
DUE DILIGENCE & COMPLIANCE
Conveyancers are heavily regulated with time-consuming compliance. It is frustrating to all parties, including the Conveyancer. Pressuring Conveyancers will not be helpful as their hands are tied. Pushing the Conveyancer to waive this may also "Red Flag" the issue if there is an unnecessary amount of haste about a transaction or insurmountable issues / excuses for why compliance cannot be adhered to in these particular circumstances. No Conveyancer, or law firm, will risk regulatory intervention or removal from the lender panel because parties are dismayed at the time conveyancing takes.
SOURCE OF FUNDS
Help the Conveyancer by making sure the Buyer understands the intrusive requirement to provide Source of Funds and Wealth evidence. This means a full paper trail evidencing the same and not just where funds are held but how they were acquired over time. The Government implemented these requirements to prevent crime and fraud. It is not Conveyancers being pedantic. It is not a tick-box exercise or a formality. Each Buyer has different circumstances and the required evidence depends on their situation and is unique. Conveyancers face serious sanctions for non-compliance. They will not risk it.
INDEMNITY INSURANCE
This is an insurance policy obtained to cover a title defect Not all title defects can be covered with indemnity insurance. It depends on the defect. Remember that Indemnity insurance does not solve the defect it only insures against losses resulting from it. There is also no guarantee that a claim under indemnity insurance would be successful. Some lenders and buyers will not be happy with such flimsy cover and will require that the defect be resolved.
CHASING
Allow Conveyancers sufficient time to action correspondence, emails and calls. Don’t repeatedly follow up thinking that will telegraph the importance. Communication will be dealt with in date order of receipt. It is impossible to instantly action all letters, calls and emails due to the sheer volume. It is only fair to action these based on age of the communication.
Chasing constantly slows Conveyancers down as they cannot get to the file and are waylaid constantly.
Conveyancing is NOT like an Amazon purchase. The average is about 15 weeks but varies as each chain is unique.
The above is meant to be helpful and is not a criticism of Estate Agents or Sellers or anyone in the Profession. We can all do our bit to improve the Conveyancing experience.
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