The Phew! Conveyancing difference
- We have a long-standing reputation of completing cases 40% faster than the industry average.
- With our 24-hour online case tracker, you can follow the progress of your case anytime, anywhere.
- You will have direct line access to your dedicated conveyancer to ensure you're not put on hold.
- You will receive weekly updates about the progress of your case by telephone, email and SMS.
- You never have to chase us! We update you every step of the way and your peace of mind is guaranteed.
About us
Phew Conveyancing solicitors are changing the way that traditional conveyancing is done. By embracing the latest in legal technology we offer fast, convenient, high-quality conveyancing legal service at a competitive price.
Phew! has partnered with leading law firms that specialise in online conveyancing for residential sales, purchases and remortgage cases. Our Conveyancing solicitors are highly trained and experienced in conveyancing of all types...
General Questions regarding the Conveyancing Process
What is local search indemnity insurance?
This is mainly carried out in re-mortgage transactions. It is basically an insurance that covers for any adverse entries that may have been revealed had a full local authority search been carried out. The insurance only protects the lender's interest and not the property owner.
What is the Office Copy Entry (OCE)?
Office Copy Entries is the title document issued by the Her Majesty's Land Registry which reveals details of the current proprietor together with information as to description of the land / property and details of any rights over the land and / or for the benefit of the land (as well as any financial charges). This is one of the first documents that a solicitor would want to see.
What is Priority Search (OS1)?
A priority search is carried out by a solicitor with the Land Registry against the title number revealed in the OCE. This gives a 30 day priority to register client's interest before any other third party can. This is crucial because between completion of a house purchase and registration of the house purchase there is always a delay and there is a chance that if a priority search is not carried out before completion a third party may register an adverse entry (such as a charge) before the property is registered by the solicitor. A priority search will also reveal if anyone has already registered any adverse entries before the day of completion.
What is the bankruptcy search (K16)?
If you are borrowing money (i.e. a mortgage) to hep with the house purchase. Then the solicitor must carry out a bankruptcy search against your full name. This is to protect the lender's interest.
What is the Search Package for?
In every property purchase transaction in which a mortgage lender is involved, the solicitor is required to carry out, as a minimum, a local authority search, environmental search and a drainage search and depending on the locality there may be further searches (e.g. flooding or mining) required. The type of searches carried out also depends on the Home Information Pack that is available.
What is a redemption statement?
The redemption statement shows how much is still owed on the client's existing mortgage, and any other loans the client is paying off. If the client has taken any other loans which are not included in the redemption figure, the client must inform his conveyancer immediately. Failure to do so could result in the conveyancing transaction being delayed.
What is a mortgage offer?
It is a document issued by the lenders that incorporates all the terms and conditions of the proposed mortgage for your house purchase or remortgage.
What is the Contract?
- The Contract (agreement for sale) reflects the conditions on which the property will be sold to the buyer. When you receive a copy of the contract and you should immediately inform your solicitor if any of the information on the contract is incorrect. If you are happy with the contract you need to sign and return it to your solicitor as soon as possible. This is the document that needs to be signed by both the buyer and the seller confirming that they agree to the terms and conditions of the sale.
- If you require further clarification of the contract, you must address this with your solicitor prior to signing it. Once the solicitor has received the signed contract s/he will proceed to an exchange of contracts and may only contact you prior to exchange to confirm a completion date. If you do not want you solicitor to exchange contracts you must immediately contact your solicitor; as once the contracts are exchanged you have entered into a binding contract with the other party.
What is a Transfer Deed (TR1)?
- The Transfer Deed (TR1) is the legal document which transfers the ownership of the property from the seller to the buyer.
- The Transfer must be signed in the presence an independent witness, such as a neighbour or friend, who must state their full name and address next to the client's signature. If you would prefer to, you can attend your conveyancing firm's office to have this witnessed by one of the solicitors at the firm.
You must not date this document as it has to be dated on the day of completion. What if there is a matrimonial or other legal dispute?
If you are involved in divorce proceedings or any other legal/ matrimonial disputes, you must disclose this to your solicitor at the earliest possible opportunity but at the latest prior to contracts being exchanged. If, after contracts are exchanged, it comes to light that you are involved in some sort of legal/matrimonial dispute which you did not disclose earlier, the conveyancer may be unable to complete on the case and as a result you may incur very heavy penalties and face compensation claims.
What is a leasehold property?
A leasehold property is one where there is limited ownership for example a person can have a property for 99 years only or 125 years and some leases are as long as 999 years. These are generally flats and maisonettes. And they have a lengthy document called a 'lease' which states in detail what a person can do with a property and what he cannot. For example it may state whether pets can be kept in the flat, whether the floor must have carpet, how often the flat must be painted and leases can also limit the period for which a flat can be rented.
What is a freehold property?
A freehold property is one which is owned permanently by a person. There are very seldom any lengthy restrictions and usually an owner can do what they like with freehold properties, subject to planning permission and other legal requirements.
What are title deeds?
This is the name given to the set of documents that prove the ownership of a property. Nowadays an Office Copy Entries is the only document that is considered a Title Deed and it is conclusive on ownership of properties.
Questions about Exchange of Contracts and Completion of your Conveyancing Case
Can I exchange before I receive my mortgage offer?
This is not advisable as there is always the chance that your mortgage application is declined, delayed or it may contain conditions that you are unable or unwilling to comply with and thus you many not have the necessary funds available to complete on the transaction. Our solicitors would strongly advise you against doing this.
Can my mortgage offer be revoked after exchange of contracts?
It is very rare but a mortgage company is at liberty to revoke their offer at anytime before completion. If you have concerns you should speak to your mortgage advisor/IFA/.
Is any day particularly good for completion to take place?
There are no particular good days but it is generally advisable to avoid completions for Fridays and the last working day of a month. These days are generally very busy and even banks may have trouble processing funds.
Can a completion date be changed after exchange of contracts?
Once completion is scheduled and contracts have been exchanged, it cannot be changed without the consent of the other party. It will usually take place between 2pm and 4pm on the set date, however, always confirm the time of completion with your solicitor.
What typically happens during exchange of contracts?
During exchange of contracts each solicitor will have their own client's part of the signed contract. Then over the phone both the purchaser's solicitor and the seller's solicitor will confirm the purchase price, the date of the contract, the agreed completion date, and the deposit to be paid by the buyer and will then agree to exchange contracts and have it dated. The solicitors then give undertakings to forward their client's part of the contract to the other party. The buyer's solicitor will also need to send the deposit which is usually in the form of a cheque. The contracts are legal binding on the day of exchange of contracts.
What typically happens during completion?
- SALE CONVEYANCING – as soon as the seller's solicitor receives the money from the buyer's solicitor (most likely between 12pm and 2pm) he will inform you or your estate agent to release the house keys to the buyer. The solicitor will use the funds to discharge any charges the client may have on the house and he will forward the client the balance by TT (unless client has requested a cheque).
- PURCHASE CONVEYANCING – as soon as the purchaser's solicitor has received all completions moneys from client (if any is due) and/or lender (which is normally requested at least 2 working days prior to the date of completion) then on the day of completion he will send a TT to the seller's solicitor. Once the completion moneys have been received the seller's solicitor they will call the purchaser's solicitor and confirm that they have received the completion monies and that they have authorised the estate agent to release the keys to the purchaser. The purchaser's solicitor will accordingly inform the client to collect the keys from the estate agents or the seller directly. Majority of the completions take place between 12pm and 2pm.
IMPORTANT: Apart from the above information given about exchange and completion all other questions should addressed to the solicitor, especially if it is anything specific to do with the conveyancing case. For example if you want to what is the latest time you can complete on the purchase then you will need to speak directly with your solicitor as the time will depend on whether there is a chain in the conveyancing transaction.
Conveyancing Case Progression
How does a standard conveyancing case typically progress, what are the major steps?
Purchase Conveyancing
- 1) Open the file
- 2) Send out welcome pack to client
- 3) Do Searches
- 4) Receive mortgage offer
- 5) Receive contracts from other side solicitors.
- 6) Raise any enquires and wait for satisfactory answers.
- 7) Get all necessary documents, transfer and contract, signed by client.
- 8) Exchange
- 9) Completion and key release
- 10) Registration
Sale Conveyancing
- 1) Open the file
- 2) Order office copy entries
- 3) Send out welcome pack to client
- 4) Request leasehold information and deeds if necessary.
- 5) Send out contracts
- 6) Reply to any enquiries raised by other side’s solicitor.
- 7) Wait for return of approved contract.
- 8) Exchange
- 9) Completion
- 10) Discharge
Re-Mortgage Conveyancing
- 1) Open the file
- 2) Send out welcome pack to client
- 3) Request leasehold information and deeds if necessary.
- 4) Mortgage offer received
- 5) Perform priority and bankruptcy searches
- 6) Receive mortgage monies and balance from client.
- 7) Completion
- 8) Registration
Case Duration and Reasons for Delay
How long does a conveyancing case take to complete?
- Eight weeks is the average length of time for a sale/purchase conveyancing cases conducted by our solicitors, but it can take as long as 12 weeks. The length of time is dependant on a number of factors, such as the complexity of the case, problems revealed by searches, and most importantly length of time taken by the other side's solicitors to respond to queries.
- Re-mortgage cases, on average, take two weeks.
What factors may delay a conveyancing case?
Purchase Conveyancing
- Delays in obtaining the mortgage offer.
- Delays in you returning welcome pack, and conveyancing pack documents.
- Delays by seller's solicitors in sending contract papers or answering enquiries raised by the purchase conveyancer.
Sale Conveyancing
- Delays in purchaser obtaining the mortgage offer.
- Delays in you returning the welcome pack, and conveyancing pack documents.
- Delays by purchase conveyancing solicitors in approving contracts or raising enquiries.
Re-mortgage Conveyancing
- Delays in obtaining the mortgage offer.
- Delays in obtaining title documents and redemption statements
Money, Fees and Disbursements
How long does it take before monies that I transfer can be utilised?
Your solicitor cannot use monies transferred until it has cleared through your solicitor's bank. Please allow the following time for payments to clear:
1. Cheques, banker's drafts and international transfer take at least 5 clear working days to clear.
2. Online transfers take up to 3 working days to clear.
3. Credit Card payments take 3 working days to clear and there will be a handling fee depending on the type of credit card the client uses.
4. Telegraphic transfers take up to 24 hours to clear.
Your solicitor may decline to accept anything more than £500 in cash.Do I receive interest on client monies that my solicitor holds?
In conveyancing transactions your solicitor may not pay interest accrued on any money kept in their client account for less than ten working days. If you do not agree with this, you should advise your solicitor in writing prior to transferring monies.
What is a Deposit
A deposit is the amount of money that a purchaser gives us to transfer to the seller on exchange of contracts. It is usually 10% of the house purchase price.
What is a Financial Statement?
This is a detailed breakdown of all the costs and disbursements involved in your conveyancing transaction.
If you require clarification of your financial statement please refer this to the conveyancing solicitor.
If there is a balance required from you in order to complete, your solicitor will need that amount in cleared funds, prior to completion of the house purchase. Any balance due back to you at completion will be sent by cheque unless your solicitor is instructed otherwise in writing before completion.
What is a Bill of Cost?
A Bill of Cost deals with the legal fees that the solicitor charges you. It generally does not include disbursements.
What's the difference between a Fee and a disbursement?
Fees- Fees are related to our professional legal services.
- Typical Fees = professional fees, mortgages fee, TT fee etc …
- Disbursements are incurred on the client's behalf and paid to a 3rd party.
- Typical Disbursements = Office Copy Entries, searches, management enquiries, Stamp Duty Land Tax, Land Registry fees.
What is the Telegraphic Transfer (TT) fee?
This is the fee for electronically transferring monies from your solicitor's bank account to another bank account.
When do solicitors use TT in conveyancing transactions?
Solicitors use TT when there are large amount of funds to transfer. Also on completion, solicitors send monies by TT because completion of the house purchase cannot take place until the funds are cleared. And cheques can take up to 7 working days to clear. Furthermore, a standard agreement for sale will state that completion funds are transferred by telegraphic transfer.
Why don't solicitors send cheques to clients on completion?
Usually when there is a large amount of money to send to clients, solicitors avoid the use of cheques because a cheque takes 7 working days to clear, which means a client could suffer interest for at least seven days. A TT clears within hours if sent before 3.p.m. Therefore it generally works out cheaper for the client to use a TT and incur a TT fee than lose interest on monies while a cheque clears.
What if I want a cheque to be sent on completion?
Your solicitor can send you a cheque if you require. However, you could possibly be losing out on interest that could accrue in a high interest rate saving account.
What is a mortgagee's/ lender's fee?
This is a solicitor's fee for acting for your mortgage lender. Most solicitors act for both the client and the lender in a purchase as it is the quickest and most cost effective way of doing the conveyancing.
What is the leasehold fee?
Leasehold transactions involve much more work than freehold and as a result additional fee is charged for leasehold properties. In freehold transactions there is no lease and no enquiries to be made of the Management Company or Landlord.
What is the Land Registry Fee?
This is a disbursement fee for registering the property at Her Majesty's Land Registry after completion has taken place. This fee is charged by the Land Registry on a sliding scale according to the value of the property and is imposed by the government. Solicitors do not keep this fee, they just pass this forward on the clients behalf.
What is Stamp Duty Land Tax?
Stamp Duty is a government tax payable to the Inland Revenue assessed on the value of the property. It is charged on a sliding scale and is not payable on properties valued under £125,000.
If I have more than one lender; will I still be charged the one mortgage fee or more?
Generally solicitors would charge extra for each lender they have to deal with.
Will I be charged more if their case becomes complicated or delayed?
No, not because a case becomes complicated but there are additional charges for example dealing with property indemnity insurance, preparing statutory declarations etc.. A full list of additional fees can be view below.
Can I make an online payment?
- You can access the firm's online payment gateway via the website: www.elcsolicitors.com and make a card payment.
- If you have an online banking facility then you may transfer money online direct into your solicitor firm's account but you must quote your full reference. It may take between 3 to 5 working days for the money to be received into the firm's client account.
How to Complete our Solicitors' Welcome Pack
Some of my details seem to be wrong in the Welcome Pack, what shall I do?
Please amend any details that are incorrect and return the Welcome Pack with changes marked, on the client information form.
What is the Form of Authority (FOA)?
This confirms that the client is instructing our solicitor to act on his behalf in the conveyancing case and agree to the terms and conditions in our Welcome Pack. The client is also agreeing to our solicitor giving updates concerning his conveyancing case to all parties involved, such as lenders/brokers, estate agents and other side solicitors.
What is the Client Questionnaire?
This contains questions about the property transaction as well as personal details such as contact details and other information which our solicitor will need to proceed smoothly with your conveyancing case.
What is the Utilities Form?
This form is used only in purchase conveyancing cases, and it contains information about your suppliers of gas, electricity, telephone etc…
What is the Joint Ownership Declaration Form?
- This form is used only in purchase conveyancing cases, when there is more than one buyer. In such a case, the Land Registry will need to be told as to how the buyers wish to hold the property. There are two options as (A) JOINT TENANTS or (B) TENANTS IN COMMON.
- Please, read the form which should be self explanatory.
- If you require further clarification please contact your solicitor.
What is an Overriding Interest Declaration Form?
This is only used in sale conveyancing cases. The seller must sign this form confirming whether or not there are any unregistered third party rights affecting the property.
What do I need to complete/return from the Welcome Pack? In all types of conveyancing cases the Client Identity Documents (copies)
Please do not send original documents such as passport or driving licence.
Generally one from List A and one from List B:
LIST A:
- Passport- Full UK driving licence
LIST B:
- bank statement (less than 3 months old)- Utility bill (less than 3 months old) NO MOBILE BILLS.
Individuals: documentary evidence of personal identity: UK residents
The following is a list of examples of suitable documentary evidence of name for UK resident private individuals. Any photographs on an ID provided must be of a likeness to the client failing which it will not be accepted:
- Current signed passport;
- EEA member state identity card (which can also be used as evidence of address if it gives this);
- cheque drawn on an account in the name of the client with a bank in the UK or EEA;
- residence permit issued by Home Office to EEA nationals on sight of own country passport;
- current UK or EEA photo-card driving licence;
- current full UK driving licence– old-style paper provisional driving licence should not be accepted;
- benefit book or original notification letter from the Benefits Agency confirming the right to benefits;
- photographic registration cards for self-employed individuals and partnerships in the construction industry C1S4 (the card does not contain an issue or expiry date and is renewed only if the individual's appearance changes dramatically);
- firearms or shotgun certificate;
- national identity card containing a photograph of the client; and
- an entry in a local or national telephone directory confirming name and address.
Individual: documentary evidence of address (must be within 3 months old) The following is a list of examples of suitable documentary evidence of address for UK resident private individuals. A client must provide two different IDs and therefore an ID used as evidence of name cannot be used again as evidence of address:
- confirmation from an electoral register search that a person of that name lives at that address;
- a recent utility bill or statement, or a certificate from a utilities supplier confirming an arrangement to pay for services on pre-payment terms (we do not accept mobile telephone bills);
- local council tax bill for current year;
- current full UK driving licence– old-style paper provisional driving licence should not be accepted;
- bank, building society or credit union statement or passbook containing current address;
- a recent original mortgage statement from a recognised lender;
- solicitor's letter confirming recent house purchase or land registry confirmation of address;
- local council or housing association rent card or tenancy agreement;
- benefit book or original notification letter from the Benefits Agency confirming the right to benefits;
- EEA member state identity card;
- Inland Revenue self-assessment statement or tax demand;
- house or motor insurance certificate;
- record of any home visit made; and
- an entry confirming name and address in a local or national telephone directory.
UK companies
- Evidence of identity will be required in relation to the company itself, usually comprising:
- a copy of the certificate of incorporation
- a list of directors
- a list of shareholders
- the registered address which can be obtained from an official, or recognised independent source including an extract from a reputable online information provider?
In addition, where it is reasonably practicable, we need to obtain evidence of identity in relation to one of its directors or shareholders, one of whom should usually be the person instructing us or alternatively appears to us, on the face of it, to be active in the management or control of the company. If the matter is complicated questions must be referred to the Case Worker. By way of exception where the company is a well established household name there is no need to obtain the additional identification referred to in this subparagraph;
In a PURCHASE conveyancing case
- Client Questionnaire
- Form of Authority
- Tenancy Form (if more then one buyer)
- Copy of Mortgage Offer
- Copy of Survey/Valuation Report
- Cheque for £250
- In a SALE conveyancing case
- Client Information Form
- Form of Authority
- Sellers Property Information Form
- Sellers Leasehold Information Form (Only if Leasehold property)
- Fixtures and Fittings Form
- Overriding Interest Declaration form
- Utilities Questionnaire/Supplemental Enquiries Form
- Transfer Deed (TR1)
- Contract
- Title documents such as original lease
- In a RE-MORTGAGE conveyancing case
- Client Information Form
- Form of Authority
- Tenancy Form
- Title Deeds such as original lease
- Copy of Mortgage Offer
- Copy of Survey/Valuation Report
Our Solicitors' Conveyancing Pack
What is the conveyancing pack for?
If a client is not coming in to sign documents then a "Conveyancing Pack" will sent to the client. This contains all the information that would have been explained to the client had they come in to sign the documents.
What does the conveyancing pack consist of?
- PURCHASE conveyancing – contract, transfer deed, mortgage deed, financial statement, our invoice/bill of costs, copies of searches, SDLT (Stamp Duty Land Tax form) SPIF, SLIFF, FF &C form, OCE, Lease and any other documents the solicitor thinks is necessary for the client to know about or sign.
- SALE conveyancing – transfer deed (unless already provided by client), contract (unless already provided by client), stock transfer form, completion statement and bill of costs.
- RE-MORTGAGE – mortgage deed, financial statement and invoice/bill of costs.
Anti-Money Laundering (ML)
What is money laundering?
Money Laundering is the method by which proceeds of criminal activity such as drug trafficking and tax evasion are made to look like it has come from a legitimate source. Money laundering is a serious problem for the UK as it is an international financial centre.
What identification documents do we need to satisfy ML procedure?
The key is to obtain documents that help identify the client is the person who he says he is. Generally the rules require a client to produce a name and address ID (either a valid passport or a photo driving licence) and a utility bill (within the last 3 months) to prove his residential address.
Do we need to provide certified ID documents even if the solicitor is going to do an electronic ID verification?
If electronic verification is to be carried out, you only need to provide photocopies of the ID documents; you do not need to provide certified ID documents unless the electronic verification fails to identify you.
What if the client does not have any name ID?
We would ask the client to get one of the following persons, that he knows well, a Doctor, Justice of the Peace, Qualified Accountant, Dentist, Solicitor or Barrister to certify the photo as being of 'true likeness' of the client. They will generally write on the back of a photo something to this effect: 'This photo is of true likeness of Mr John Smith' and it will be signed by the professional. If a client cannot produce any utility bill to prove his residential address, we would require a letter from the client's doctor to confirm that the client resides at the address he claims to be residing at.
What if the client refuses to provide the ID documents?
If a client refuses to provide ID verification documents, we would not be able to accept instructions from the client.
Do we accept instructions from clients under the age of 18 years old?
We cannot accept instructions from a client under the age of 18.
What is the maximum amount of cash that solicitors can accept?
Solicitors should not accept any cash over the sum of £500.
If a client wants to deposit money, do we need proof of where he got the money from?
If a client is seeking to deposit more than £500, the solicitors are likely to request documents to show the source of the.
What evidence does a client have to provide to prove where he got his money from?
Typically solicitors ask to see bank statements showing the monies accruing in the account or ask to see various bank statements to see the movement of money. If there was a sale of property to raise money, your solicitor would ask to see a receipt of the sale. If there was a gift, your solicitor would require bank statements of the person that made the gift and a declaration of gift as well.
When must the client get the ID documents to his solicitor by?
Your solicitor must have ID documents before he can receive monies over the sum of £500 and he must definitely have the ID documents before the client can exchange contracts.
What happens if the client fails to give the required ID documents in time?
This could cause delays as we are required to have these ID documents before we can proceed to exchange of contracts.
Is there any information on anti-money laundering regulations that we can send you?
Your solicitor should have leaflets published by the Law Society of England and Wales that explain the law.
Phew Legal Services Limited is regulated by the Solicitors Regulation Authority and covered by professional indemnity insurance in excess of two million pounds.Blog
Articles
