18 June, 2025 Home & Property

Buying or Selling a Home? Your Step-by-Step Legal Guide

Buying or selling property is likely to be one of the biggest financial transactions of your life. Understanding the legal process – known as conveyancing – can help you avoid pitfalls and delays. This guide walks you through the key stages of property transactions in England and Wales.

Before you start: getting prepared

For buyers:

  • Get a mortgage agreement in principle
  • Save for your deposit (typically 5–20% of the purchase price)
  • Budget for additional costs (stamp duty, legal fees, surveys)
  • Research areas and property prices

For sellers:

  • Decide if you’ll use an estate agent or sell privately
  • Gather important documents (property deeds, energy performance certificate, etc.)
  • Consider timing if you’re also buying another property
  • Make any minor repairs or improvements to increase appeal

The conveyancing process: key stages

1. Instruction of solicitor or conveyancer

Choose a qualified solicitor or licensed conveyancer to handle the legal work. They should be:

  • Regulated by the Solicitors Regulation Authority or Council for Licensed Conveyancers
  • Experienced in residential property transactions
  • Clear about their fees and timescales

2. Pre-contract phase

For sellers:

  • Complete property information forms (TA6, TA10, TA7 if leasehold)
  • Provide proof of identity
  • Locate title deeds or official copies of the register
  • Answer the buyer’s preliminary enquiries

For buyers:

  • Pay for searches (typically £250–£450):
    • Local authority search (planning, highways, etc.)
    • Water and drainage search
    • Environmental search
    • Additional searches if relevant (mining, flood risk, etc.)
  • Arrange a property survey
  • Raise enquiries based on search results
  • Secure mortgage offer

3. Exchange of contracts

This is the point at which the deal becomes legally binding. Before exchange:

For sellers:

  • Agree completion date with buyer
  • Sign contract
  • Confirm all enquiries are answered

For buyers:

  • Ensure mortgage offer is in place
  • Arrange buildings insurance (effective from exchange date)
  • Pay deposit (usually 10% of purchase price)
  • Sign contract

After contracts are exchanged, neither party can back out without significant financial penalties.

4. Between exchange and completion

For sellers:

  • Move preparations
  • Sign transfer deed
  • Obtain mortgage redemption figure

For buyers:

  • Final checks (property has not been altered since viewing)
  • Arrange funds for completion (balance of purchase price, stamp duty, etc.)
  • Sign mortgage deed and transfer deed

5. Completion

This is the day when money changes hands and the property officially changes ownership.

For sellers:

  • Move out and hand over keys
  • Pay estate agent fees
  • Pay off existing mortgage

For buyers:

  • Solicitor sends purchase funds to seller’s solicitor
  • Collect keys
  • Pay stamp duty land tax (SDLT) within 14 days

6. Post-completion

For sellers:

  • Solicitor repays outstanding mortgage
  • Notify utility companies and council tax office

For buyers:

  • Solicitor applies to Land Registry to register you as new owner
  • Pay any stamp duty land tax (SDLT)
  • Notify utility companies and council tax office
  • Consider changing locks

Common issues and how to avoid them

Chain breaks

  • Be flexible on completion dates
  • Have temporary accommodation as a backup
  • Keep regular communication with all parties

Survey problems

  • Address serious issues before exchange
  • Negotiate price reduction if repairs needed
  • Be prepared to walk away if issues are severe

Title issues

  • Restrictive covenants limiting what you can do with the property
  • Rights of way across the property
  • Flying freeholds (parts of property extending over another’s land)

Leasehold complications

  • Check lease length (under 80 years can cause problems)
  • Review service charges and ground rent
  • Check for upcoming major works
  • Understand restrictions (e.g., on pets, subletting)

Timing expectations

A straightforward transaction takes 8–12 weeks from offer to completion. Delays can be caused by:

  • Property chains
  • Leasehold paperwork
  • New build completion
  • Mortgage or legal delays

Costs to expect

For buyers:

  • Legal fees: £850–£1,500
  • Search fees: £250–£450
  • Survey: £400–£1,500
  • Land Registry fees: £20–£910
  • Stamp Duty Land Tax (SDLT): based on value
  • Mortgage arrangement fees (if applicable)

For sellers:

  • Legal fees: £800–£1,500
  • Estate agent fees: 1–3% of sale price + VAT
  • Early mortgage repayment charges (if applicable)
  • Energy Performance Certificate (EPC): £60–£120

Disclaimer

This article provides general information about property transactions in England and Wales as of April 2025. It is not legal advice, and laws can change. Your individual circumstances may affect how the law applies to your situation.

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