What Exactly Does a Conveyancer Do?

When you are buying or selling a property, you will likely come across the term leasehold conveyancing and hear about the role of a conveyancer. However, many people aren’t entirely sure what a conveyancer does or why their role is essential in the property transaction process. In this post, we will explore the duties of a conveyancer, particularly focusing on leasehold conveyancing, to provide a comprehensive understanding of the role.

Understanding Conveyancing

Conveyancing refers to the legal process of transferring property ownership from one person or entity to another. It covers all the administrative and legal tasks required to ensure the property sale or purchase is legitimate and correctly documented. A conveyancer is a specialist solicitor or licensed conveyancer trained in property law who handles this process on behalf of their clients.

The Role of a Conveyancer in Property Transactions

Conveyancers manage various aspects of property transactions, including both freehold and leasehold conveyancing. Their responsibilities are wide-ranging and aim to protect their client’s interests throughout the sale or purchase.

Initial Checks and Searches

One of the early duties of a conveyancer is conducting essential property searches. These might include local authority searches, environmental searches, and drainage and water searches. In the case of leasehold conveyancing, additional checks are required to understand the specifics of the lease, such as:

• The lease term and length remaining

• Any ground rent or service charges

• Restrictions and covenants in the lease

These investigations are crucial because they reveal potential issues that could affect the property’s value or the buyer’s future enjoyment.

Drafting and Reviewing Contracts

The conveyancer prepares, reviews, and exchanges contracts between the buyer and the seller. When dealing with leasehold properties, leasehold conveyancing involves a meticulous examination of the lease agreement documents. This ensures that the buyer understands their rights and obligations under the lease. Conveyancers also negotiate terms when necessary and confirm that all legal requirements are met before contracts are signed.

Handling Finances and Deposits

Conveyancers oversee the financial aspects of the transaction, including managing deposits paid by the buyer. They ensure that funds are transferred securely and coordinate with mortgage lenders when applicable. For leasehold properties, they clarify any financial commitments such as service charge deposits or contributions towards building insurance.

Liaising with Other Parties

A significant part of a conveyancer’s job is communication. They liaise with various stakeholders, including the other party’s conveyancer, estate agents, mortgage lenders, and the Land Registry. In leasehold conveyancing, liaising with the freeholder or managing agent is often required to obtain important documents and permissions related to the lease.

Completion and Registration

The final stage of conveyancing is completion — when the sale officially takes place, and the buyer takes ownership of the property. The conveyancer arranges the transfer of funds to the seller and ensures all necessary documentation is signed. After this, they handle the registration of the property title with the Land Registry, officially recording the change in ownership and updating details for leasehold properties.

Why Is Leasehold Conveyancing Different?

Leasehold conveyancing involves particular complexities that distinguish it from freehold conveyancing. A leaseholder owns the property for the length of the lease but not the land on which it stands. This means there are ongoing obligations and restrictions tied to the lease, such as paying ground rent or abiding by the freeholder’s rules.

A conveyancer specialising in leasehold conveyancing will ensure these nuances are properly dealt with, protecting their client's interests. They will confirm:

• That the lease is legally valid and transferable

• Any upcoming lease extensions or enfranchisement rights

• Responsibilities relating to repairs and maintenance

• Service charge obligations

This extra scrutiny is vital because leasehold properties can sometimes carry hidden risks that impact future resale value or ownership rights.

Final Thoughts

Understanding what a conveyancer does clarifies why their expertise is invaluable in any property transaction, especially when dealing with leasehold conveyancing. From conducting thorough searches and reviewing contracts to managing financial transactions and handling legal requirements, conveyancers provide peace of mind and ensure the process runs smoothly. Whether purchasing a leasehold flat or a freehold house, engaging a skilled conveyancer is a crucial step in securing your property investment and safeguarding your rights as a buyer or seller.