Buying your first home is exciting, but it can also feel confusing, especially when it comes to the legal side. In this first time buyer guide, we explain the transactional steps of buying your first home in the UK.
It is key to note that, on average, a residential conveyance takes around eight to 12 weeks from the point at which the draft contract pack is received. Although this is the average timescale, it can vary from transaction to transaction depending on the nature of the property.
Finding a Solicitor
Once you’ve had an offer accepted on a property, the next step is to choose a solicitor or a licensed conveyancer. It is important to instruct your solicitor early and inform your estate agent (if applicable) of your chosen solicitor.
Once all parties have been confirmed, the estate agent will issue what is known as a Memorandum of Sale to each of the solicitors in the transaction. This document confirms the names of each party and the details of the transaction, such as purchase price and property address.
Your chosen solicitor will then proceed to contact the seller’s solicitor to get things started and request the contract pack. This pack includes details about the property, the legal title, and any information the seller thinks is vital for the incoming owner to be made aware of.
Having a solicitor who is aware of your status as a first time buyer is important as they can help you make sense of the various moving parts involved in the process and explain in more detail any steps that seem complicated or daunting.
Onboarding
Following your confirmation of instruction, your solicitor is required under Anti-Money Laundering Regulations to carry out onboarding, which consists of an ID check on each client, along with a source of funds check of all the monies being used towards the purchase price. A source of funds check usually involves a request for certain documents showing the funds accumulating in each of the relevant accounts.
If you are purchasing with the aid of a gift, then similar due diligence is to be carried out on each of the individuals providing a gift. These checks are to be carried out before any work can begin, so please ensure you comply with any requests of your solicitor to ensure the onboarding iscompleted as as efficiently as possible.
Reviewing the Contract Pack
The contract pack usually includes:
- The draft contract
- Title deeds (from the Land Registry)
- Property information forms
- Fixtures and fittings list
- Energy Performance Certificate
- Leasehold Information (if applicable)
- Miscellaneous documents relating to the property.
Your solicitor will review all these documents to make sure everything is in order and there is a full and clear history of the property. If anything is unclear or missing, they will raise legal enquiries with the seller’s solicitor.
Enquiries usually consist of a series of emails exchanged between the two solicitors to clarify the points raised by your solicitor. It is vital that these enquiries are dealt with prior to a date being agreed, as a solicitor is under a legal obligation to act in your best interest and ensure the property is fit for purpose.
Carrying Out Searches
After obtaining the contract pack, your solicitor will also carry out legal searches to check for any issues with the property. These include:
- Local authority search (for planning permissions, road schemes, etc.)
- Water and drainage search
- Environmental search
- Coal search (if applicable)
These checks are important to make sure there are no hidden problems that could affect your use or enjoyment of the property.
However, the solicitor is not an expert in this field and cannot provide a legal opinion; they can simply advise you as to any information that was flagged in the search result and the relevant bodies to contact for more information.
Particularly if you’re buying a first home, advice on any issues flagged is very valuable, so make sure to do extra research and reach out to the local authorities if you have concerns about anything you don’t understand.
Reviewing Your Mortgage Offer:
If you are purchasing with the aid of a mortgage, your lender will send a formal mortgage offer to both you and your solicitor. Your solicitor will review the offer, check the conditions, and ensure the offer reflects the instructions provided by you.
They will also check that the property is suitable for the mortgage and that it matches the lender’s requirements.
Some mortgage offers contain special conditions; your solicitor will review these and ensure that all conditions are satisfied before proceeding to request any mortgage monies.
For example, a mortgage offer might contain a condition that a gift declaration be provided to them in relation to a gifted deposit, or an adult occupier sign the mortgage deed as per their conditions.
Issuing Documents and the Legal Report
Once all legal checks are complete and your solicitor is happy to proceed, they will issue a legal report detailing the key information revealed by their review of the contract pack, searches, mortgage offer, and enquiries. The report highlights prudent information a legal owner should be aware of, such as any rights the property benefits from.
Alongside this report, you will receive your documents for execution. These are usually the contract, transfer deed, and mortgage deed. Sometimes there are additional documents that require your signature, but your solicitor should explain the nature of these documents and why they are required within the legal report.
You will be asked to sign the above documents with wet ink and return the originals to your solicitor. They will explain the correct method for signing the document, and provide advice on any special requirements.
Funds
As you near completion, your solicitor will prepare a cash statement which confirms the final amount due prior to completion and shows a full breakdown of the feesincurred during the transaction.
It is important to send these funds as early as possible to ensure your solicitor has the required balance in plenty of time.
Exchanging Contracts
Exchange of contracts is when the sale becomes legally binding. This means that both you and the seller are committed to going ahead with the sale. Please note, exchange of contracts can only take place once a completion date has been agreed by all parties and your solicitor has the 10% deposit.
After exchange, neither party can pull out of the transaction without legal consequences.
Learn more about the difference between exchanging contracts and completion.
Completion
On the day of completion, your solicitor will send the full purchase money to the seller’s solicitor. Once they confirm the money has been received, you can collect the keys to your new home (usually from the estate agents). The property is now legally yours.
After Completion
Following completion, a solicitor will:
- Pay any Stamp Duty Land Tax or Land Transaction Tax.
- Register you as the new owner with HM Land Registry.
- Send you a copy of the title once registration has been completed.
- Carry out any post-completion requirements in addition to the above, such as notifying a management company of your ownership.
If you have a mortgage, your lender’s interest in the property will also be registered.
Find a Trusted Solicitor for First Time Buyers, with Howells
The legal process of buying a home can be daunting, but an experienced solicitor can offer advice and guide you through it. Make sure you stay in touch with them and respond to any requests promptly to keep things moving.
If you’re ready to get started, choose a residential conveyancing solicitor you feel comfortable with and who communicates clearly. A good legal team will make your first home purchase as smooth as possible – contact us today to get started on your homeowner journey.
