Conveyancing Explained

In a bid to reduce property fraud, the Land Registry has introduced “Protect your Property”. The idea is that homeowners, particularly those with no mortgage, are at greater risk of property fraud if the Land Registry can’t contact them when someone makes an application (fraudulently) to register a financial charge against the property. It is also particularly relevant to buy-to-let landlords for the same reason.

You can contact the Land Registry or download the update form from their website at www.landregistry.gov.uk. The service is free of charge.

The latest indicators are that HIPs are to be abolished by our new Government, echoing what property professionals have been arguing for years – that HIPs do not add anything of assistance to the conveyancing process and in some instances, even slow the process down!

EPCs are to remain however; good news for all those who spent thousands of pounds training to become Energy Performance Assessors. Personally, I have found the EPC the most useless part of the HIP pack from a conveyancing point of view. Although I understand they will continue in an attempt to improve energy efficiency, I have yet to speak to a client who has actually read, understood and actioned or proposed to action anything contained in the EPC.

Do you think your conveyancing solicitor has been negligent? You think that he’s missed something or has given you incorrect information?

Before going any further, you need to contact your conveyancing solicitor and ask that he explain why. There might be issues that you’re not aware of because they are complex legal issues or standard practice. You need to give the person time to explain before you make a complaint.

If after hearing the full explanation, you’re still not satisfied, then you need to find out who the firm’s Complaints Partner is. Ask for a copy of the firm’s Complaints Procedure and follow it. Unless you do this, you cannot proceed any further and it may be that negotiations can resolve this issue before things become unpleasant.

If the Complaints Partner still doesn’t deal with the issue satisfactorily, then you can contact the Legal Complaints Service for advice. They deal with solicitors’ negligence and will listen to what you and your conveyancing solicitor have to say. If they believe that your solicitor was negligent, then they will order the solicitor to resolve it.

You can contact the Legal Complaints Service (and not the Law Society, who no longer deal with client complaints) at http://www.legalcomplaints.org.uk/home.page.

The most common complaints relate to “poor service” i.e. that you were either given incorrect information or not told something that you should have been, or that you were charged much more than you originally expected without being told in advance. All such issues can be investigated fairly by the Legal Complaints Service, but you must go through the Complaints Procedure first.

Don’t be too quick to make an accusation of solicitor negligence – make sure you have the fullest information first.

As I said in my article, “Want a low cost conveyancing service? Are you sure?“, it’s not necessarily just about finding the lowest conveyancing quote. Conveyancing is an important transaction in your life and you need to make sure it’s done properly. You want someone who gives you a good service, is knowledgeable, keeps you updated and explains things in a way you understand.

Are you going to get this from the cheapest conveyancing company? You might, but on balance of probability, it’s not likely. I would be more inclined to see what I thought of the conveyancing firm when I rang them. Did they seem knowledgeable when you asked them questions? Would they explain what the disbursements were and what the process was? Did they offer to let you have the conveyancing quote in writing so that you can see the breakdown of what they are including for you? If the answer to all these questions is yes, then I think you’ve found your conveyancer, provided the price isn’t astronomical!

Don’t be afraid to ask questions. Do they have online case tracking so you can see how far things have progressed when you want to and not just when they’re open? Do they write to clients via email, speeding up the rate at which you can get information about what’s happening? Can they explain a basic outline of what the process is? How quickly can you see or talk to your conveyancing solicitor direct once you’ve instructed them? All these issues can help you make your decision. Don’t just go on price. If you ring a conveyancing firm and they’re unhelpful when they’re trying to get your business, what will they be like when they’ve actually got it?

Make a considered choice with more information than just the cost!

I know when you read my next sentence, you’re unlikely to be impressed. The old maxim “You get what you pay for” applies to a conveyancing service, just like any other.

I know everyone nowadays wants the cheapest deal and that people think solicitors are grossly overpriced in what they charge for fees. That may be true of some solicitors, I’m sure, but if you actually saw the amount of work that your conveyancing solicitor actually does, then I believe you’d be more agreeable to paying a proper fee and not just using a cheap conveyancing service.

I would expect to pay from £300.00 upwards for a conveyancing solicitor’s fees alone. That being said, for a single transaction freehold purchase, I would not expect to pay more than £500.00 for the solicitors’ fees.

Remember that your conveyancing solicitor’s total quotation will also include third party fees, known as “disbursements”. You need to ask when getting a quote what the solicitor’s actual fee is.

On average, I would estimate that a conveyancing solicitor on a freehold purchase transaction, is likely to send and receive at least 40 letters and telephone calls and would spend at least 2 ½ hours working on your file throughout the whole of the transaction. When you look at the amount of work that should be done, you can see that really, conveyancing solicitors don’t actually charge that much in terms of their fee!

I do understand that people want to save money, I’m no different, but if you want a proper job to be done, then you need to pay a reasonable fee to your conveyancing solicitor and not just pick the cheap conveyancing quote. If your solicitor reduces his price too much, then it’s simply not cost effective for him to spend time on your file making sure everything is done properly and you’re more likely to be passed to an unqualified unsupervised fee earner. Corners can be cut, and you could simply end up with more problems in the future.

Obviously there is nothing wrong with wanting to get a good deal but cheap conveyancing companies are not likely to give you all the information you need about your new house because it takes too much time. Ring around your local solicitors by all means but see my separate article on “What to look for when getting a conveyancing quote” before you decide who to go with.

Many people think that if they bought a property in their maiden name that either, 1: They won’t be able to sell the property until this has been changed or 2. They need a solicitor to get the surname changed. Neither of these is correct!

Regarding point 1;-

If the house is in your maiden name, when your conveyancing solicitor instructed to act on your sale has a look at the deeds, he will see this. He will then ask you to provide your original marriage certificate, take a copy of it and return the original to you. The copy is certified by the conveyancing solicitor as being a “true copy” of the original. When your conveyancing solicitor sends the contracts and Official Copies of the Register (the name for the electronic register of deeds held by the Land Registry since paper title deeds were abolished) to your buyer’s solicitors, he will also send the certified copy of the marriage certificate. This proves to the buyer’s solicitors that you have legally changed your surname and that you are entitled to sign the contract as the owner of the property in that name. It’s that easy!

Regarding point 2:-

All you need to do is send a letter to the Land Registry, explaining that you are now married and supplying your original marriage certificate. If I was doing so, to make sure it gets there, I would send it by recorded delivery. It might also be helpful if you included a stamped addressed envelope for the return of the certificate.

The Land Registry will then update its electronic register and return the certificate to you. Very simple and no need for a solicitor.

The Solicitors’ Disciplinary Tribunal recently found in a case brought to them that solicitors must specify clearly to you when preparing your bill, what they are actually paying out on your behalf for a bank charge and what they are charging for “organising the transfer”. In my view, no admin charge should be made, seeing as the work required is minimal and should form part of the conveyancing process.

If a solicitor is charging you more than the direct cost to them, plus VAT, they must make it clear to you that the excess is a charge by the solicitor and not an expense.

The recent decision by the SDT involved a case in which a firm of solicitors charged clients £30 plus VAT for telegraphic transfers. The actual cost in bank charges to the solicitors was £10 for each TT (a TT or telegraphic transfer is just a same day electronic payment from account to account). The remaining £20 represented profit for the solicitors, to reflect the work they did in organising the transfer; they billed their clients for a “disbursement” of £30, without making it clear how that figure was calculated. It is my view on speaking to clients that many other solicitors, certainly in my area, have done the same.

The SDT found that the solicitors had attempted to deceive their clients. This was a breach of their obligation to act with integrity (under rule 1 of the Code of Conduct to which all solicitors must comply) and of their duty to give clear information about costs (rule 2 C of C). The partners of the firm were fined £1500 each.

The same principle applies to fees for undertaking Money Laundering electronic identification check (EID). Some firms charge their clients more than the EID costs the firm. They cannot do so without making this clear to the client.

If you find yourself in any way unclear regarding disbursements, always bear in mind that you have the right to ask how the figure is calculated and whether it represents exactly the fee charged to the firm by the relevant third party.

Any breach of the Solicitors’ Regulation Authority Code of Conduct is treated very seriously and you would be entitled to make a complaint if you find yourself being deceived in the way described above.

Yet another thing to be aware of regarding solicitors’ costs!

If you are having electrical works undertaken at the property, then you may need an electrical certificate under Part P Building Regulations Electrical Safety January 2005. This depends upon the type of work being undertaken. It can either be issued by a qualified electrician or you can apply for a Building Control Officer from the Council to inspect the work.

A Competent Person is a business that has been adjudged to be sufficiently competent to self-certify that its work complies with Part P of the Building Regulations of England and Wales.

The work must be undertaken by a “Competent Person”, who must be registered with a scheme that has been approved by The Department for Communities and Local Government (DCLG). Schemes authorised by the DCLG are listed on its website at http://www.communities.gov.uk.

Work that need not be certified/notified;-

1. Replacing accessories such as socket-outlets, control switches and ceiling roses.

2. Replacing the cable for a single circuit only where damaged for example by fire, rodent or impact (on condition that the replacement cable has the same current carrying capacity, follows the same route and does not serve more than one sub-circuit through a distribution board).

3. Re-fixing or replacing the enclosures of existing installation components (if the circuit’s protective measures are unaffected).

4. Providing mechanical protection to existing fixed installations (if the circuit’s protective measures and current-carrying capacity of conductors are unaffected by increased thermal insulation).

or

Work that is not in a kitchen or special location (see below) and consists of:

1. Adding lighting points (light fittings and switches) to an existing circuit (only if the existing circuit protective device is suitable and provides protection for the modified circuit and other safety provisions are satisfactory).

2. Adding socket-outlets and fused spurs to an existing ring or radial circuit (only if the existing circuit protective device is suitable and provides protection for the modified circuit and other safety provisions are satisfactory).

3. Installing or upgrading main or supplementary equipotential bonding (such work will comply with other applicable legislation, such as the gas safety regulations).

If any of the above work is undertaken in a special location (below) it must be notified.

Special locations;-

Locations containing a bath tub or shower basin
Swimming pools and paddling pools
Hot air saunas
Electric floor or ceiling heating systems
Garden lighting or power installations
Solar photovoltaic (PV) power supply systems
Small scale generators such as microCHP units
Extra-low voltage lighting installations, other than pre-assembled, CE-marked lighting sets

New installation must be certified / notified although modifications in the following areas are exempt:-

Bedrooms
conservatories
dining rooms
halls
integral garages
landings
lounge
stairways
studies
tv rooms.

Work of any nature in the following must be certified / notified ;-

Bathrooms
Bedrooms containing a shower or basin
Ceiling (over head) heating
Communal areas of flats
Pre-assembled CE marked lights
Garden – lighting and power, greenhouses workshops and sheds
Kitchen
Kitchen diners
Remote buildings
Remote garages
Saunas
Shower rooms
Small scale generators
Solar power systems
Swimming pools
Under floor heating
Extra low voltage (E.L.V.) – under 50v ac

The regulations do not apply to computer and telephone cabling.

Make sure you keep the following items handy;-

Kettle
Milk
Tea/Coffee
Sugar
Cups
Snacks
Bedding/Towels
Scissors
Toiletries
Money
Toilet roll
Light bulbs
Small tool kit
Lighter
Pen & Paper
Items of cutlery/crockery e.g. plates, tin opener, corkscrew, knife, fork, spoon
Keys, car etc.
First Aid Kit
Pet Food
Bottle of Champagne & glasses!

Final Preparations before you leave;-

Defrost the fridge/freezer
Last minute clean-up
Remove all rubbish from the property
Have all personal possessions to hand
Make arrangements for your pets
Get directions to your new property
Check with neighbours that they agree to large removal vans parking outside the properties
Find all keys for doors/window locks etc
Ensure meter readings have been taken
Ensure that all keys have been returned by friends/relatives holding them on your behalf.
Ensure that you leave any instruction/operating manuals

Use the checklist below to ensure that all organisations are aware of your new address;-

Who to Inform;-

Employer

School

Doctor

Dentist

Bank

Electoral Register

Building Society

Credit Card companies

Home/contents insurance company

Mobile phone insurance company

Life insurance company

Pet insurance company

Petlog (if your pet is microchipped)
08706066751

Car insurance company

Share registrars

Rental companies

TV Licensing Authority
08705 246 246

Post Office – mail redirection

Gas company

Water company

Electricity company

Phone company

Satellite/Cable provider

Internet service provider

Inland Revenue

National Insurance Office
0191 213 5000

Council Tax office

Driving Licence Centre (DVLA)
Car registration and driving licence
0870 240 0009

Breakdown assistance

Opticians

Subscriptions (magazines, charities etc)

Mail Order companies

Sports & Social clubs

Pension Companies

Savings/Bonds

Club cards – Boots/Tescos/Sainsburys etc.

Private Healthcare

Library

Milk delivery/Newspapers

Unions

Solicitor holding any deeds/wills

Accountant

Vet