There are a lot of myths surrounding the process of buying and selling a house. Social media makes it easy to spread these myths and make them seem like they are true. However, it is important to examine these myths closely to see whether they are true.
Below are just a few conveyancing myths you may or may not have encountered before. Be sure to take note of them so that you will not fall victim to any wrong misconceptions along the way.
1. The Conveyancing System Is Outdated and Needs to Be Replaced
The conveyancing process is the method of transferring ownership of a property from one person to another. The process can sometimes be slow, unpredictable and painful, but it works. If you need further proof, know that millions of properties have changed hands in the last five years.
It is comparable to the post office; it may not be the most efficient service, but it does its job. It is not going to change, so there is no use complaining about it.
2. The Higher the Conveyancing Fees, the Better the Service
This myth suggests that if you pay a higher fee to your conveyancer, they will be able to work on fewer cases and devote more time to each case and as a result, issues are resolved more quickly. The truth is that the extra fees are just additional expenses and won’t speed up the process.
3. The Belief That People with Basic Conveyancing Knowledge Will Make Better Choices
People generally don't want to know about the potential difficulties that could arise in their transactions; they just want the transaction to go smoothly. In short, some people just want to know the cost and how long it will take without having to read a lot of material.
4. The Belief That Lawyers Must Manage Expectations Better
This principle is based on the idea that clients expect their lawyers to be accessible, responsive and predictable. Lawyers must manage these expectations to provide their clients with the best possible service.
The truth is that the conveyancing process could be a bit difficult to understand, especially for those who are not experienced with it. Clients often ask why an exchange date cannot be guaranteed in the same way a shopping delivery slot can be. This means that if someone has no idea what a reasonable expectation is, trying to manage it will not be effective.
5. The Belief That Legal Experience Is the Only Solution
The traditional way is often seen as the ‘best way,’ especially when it comes to speed and efficiency. It's thought that because solicitors back then had more experience, they were able to get deals done quicker with fewer questions. Today, everyone can see that the lack of experience is what causes delays and service issues. Many people believe that technology should not be relied on as a replacement for this.
The ever-increasing demands placed on lawyers today can seem daunting, but technology can help make things more manageable. By automating routine tasks and providing more transparency to clients, lawyers can free up time to focus on more complex tasks and issues, even conveyancing matters.
Some Vital Things You Should Know About Conveyancing
The conveyancing process is full of jargon and legal terms, which can be confusing. That said, it is much better to be familiar with them and the process itself so that you will never have to be confused with the myths.
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The Conveyancing Process
Much has been said about the conveyancing process, but did you know it has two essential stages?
The first stage of buying a property is known as ‘exchanging contracts.’ This is when the buyer and seller are legally bound to the deal. Both parties are free to back out of the deal at any time before it is finalised. There are no legal repercussions or costs up to that point.
The second stage of the process begins when the contracts are exchanged and ends when the transaction is completed, and the keys are collected. The buyer's solicitor will transfer the purchase money to the seller's solicitor's bank account, and once the money reaches that account, the transaction is completed. The agent normally holds the keys. If either party doesn't do what they agreed to in the contract, they are breaking the agreement.
The party that didn't do what they were supposed to will have to pay the other party for any losses. Depending on what the contract says, they may also have to pay a fine.
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The Deposit
The buyer must pay a deposit at the exchange of contracts. The seller is allowed to ask the buyer for 10% of the purchase price, but this may not be possible if the buyer depends on the sale of their property to cover the entire cost. If your deposit is less than 10%, the purchase price balance becomes due immediately if you fail to complete the purchase on the agreed date.
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The Sellers' Representations
The Law Society Property Information Form (PIF) is a document that summarises key information about a property for sale. It is provided by the seller's solicitor and includes information about things like title, planning permission, boundaries, services and any other matters that might affect the property. The buyer is entitled to rely on this information when making their decision to purchase the property.
That said, the buyer's Solicitor must be informed of any information the buyer wishes to rely on to confirm it.
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Survey
The seller's replies about the physical condition of the property are not a replacement for doing your own survey. A survey must indicate all major problems (if any) with the property that could be expensive to fix. If the buyer discovers a problem with the property after the purchase contract is signed, they may ask for a price reduction or cancel the transaction entirely.
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Joint Ownership
If two people buy a property in joint names, they can either own the property as joint tenants or tenants in common. If they own the property as joint tenants, they will both have an undivided interest in the property and will be able to use and enjoy the property together. If they own the property as tenants in common, they will each have a separate and distinct interest in the property and can use and enjoy the property separately.
Conclusion
Overall, many conveyancing myths can cause stress and confusion for those looking to buy or sell a property. However, you can avoid potential problems by understanding the process and researching. If you have any concerns, be sure to speak to a professional conveyancer who can offer guidance and advice.
If you are looking for the best conveyancing solicitors in the U.K., look no further than our experts here at Conveyancing Calculator. We provide instant online residential conveyancing quotations using our trusted and accurate Conveyancing Fees Calculator in the U.K. If you are moving home, buying a house, selling a house or remortgaging a property, then feel free to use our conveyancing quote calculator!
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