A practical guide to buying a residential property

Buying a home is an exciting milestone, but it can also feel daunting. Understanding what to expect at each stage of the conveyancing process can help reduce stress, avoid delays and keep your purchase on track.

Here’s a practical guide explaining what you need to do – and how your solicitor will support you – from making an offer through to completion.

Before you make an offer

Before committing to a property, it’s important to understand your financial position. Checking how much you can borrow early on can help avoid disappointment and unnecessary costs. Many lenders and financial advisers can provide guidance or issue an ‘agreement in principle’, which can strengthen your position when making an offer.

You should also check when any additional funds will be available. This includes savings (particularly if notice is required to withdraw them), proceeds from investments, inheritance, trust funds or divorce settlements. Typically, a deposit of 10% of the purchase price is payable when contracts are exchanged, although a reduced deposit may sometimes be agreed.

If you’re currently renting, confirm how much notice you must give your landlord and when you can move out. Finally, familiarise yourself with the costs involved in buying a property, including legal fees, stamp duty land tax, search fees and Land Registry fees. Your solicitor can provide a detailed estimate at the outset.

After your offer is accepted

Once your offer is accepted, you should formally instruct your solicitor, apply for your mortgage and consider what type of survey you need. Remember, solicitors don’t visit the property. Surveys are an important part of the process, helping to identify potential issues with the property before you’re legally committed. When available, provide your solicitor with a copy of the survey report, highlight any concerns and pursue any further reports as recommended by your surveyor.

As property purchases operate under the principle of ‘caveat emptor’ (let the buyer beware), it’s ultimately the buyer’s responsibility to satisfy themselves regarding the condition of the property and any associated risks.

You should also ensure your deposit will be readily accessible when your solicitor is ready to exchange. If you’re selling a property at the same time, the deposit paid by your buyer can usually be used for your purchase.

At this stage, your solicitor will confirm instructions with all parties, review the legal paperwork and carry out searches. Reviewing the paperwork includes checking the seller’s ownership, the terms of the contract, any rights or restrictions affecting the property and the results of relevant searches. Your solicitor will also raise additional enquiries with the seller’s solicitors and provide you with key documents to review, such as the property information form, fixtures fittings and contents form and the title plan.

Reaching exchange of contracts

Exchange of contracts is the point at which the transaction becomes legally binding. Before exchange, you must have a suitable mortgage offer in place and ensure any conditions have been or can be satisfied. You should also have access to the balance of the purchase price and associated costs. You’ll need to agree a completion date with the seller, which will need to take into account lender notice periods, moving arrangements and availability of removers.

Your solicitor will report to you on the legal aspects of the property. You’ll be asked to sign the contract and other legal documents and to pay the exchange deposit to your solicitor. Buildings insurance should usually be put in place from the date of exchange, unless advised otherwise. For example, on some new-build purchases, the developer retains the risk and continues to insure until completion.

Your solicitor will need to ensure the deposit is cleared funds, confirm the agreed completion date with the seller’s solicitors and, with your authority, formally exchange contracts on your behalf. At this point, there’s a legally binding contract in place for you to buy the property on the completion date shown in the contract. Occasionally completion may not be on a fixed date, it may be on ‘notice’. This is common with new-build purchases where the property is in the course of construction.

After exchange of contracts

Once exchange has taken place and the completion date is known, your solicitor will request mortgage funds from your lender in readiness for completion. Most lenders require at least five working days’ notice. Your solicitor will also provide guidance on what to expect on completion day.

You should finalise removal arrangements, notify utility providers and the local authority of your change of ownership and complete any remaining insurance or mortgage administration.

Before completion

Shortly before completion, your solicitor will send you a financial statement showing the balance required from you to complete, including any stamp duty land tax and Land Registry fees. Your solicitor will require the full balance from you by way of cleared funds before completion. Final searches will be carried out to ensure no new issues have arisen and any outstanding enquiries will be resolved.

You must ensure cleared funds are transferred to your solicitor in line with the payment instructions provided and confirm with the estate agents that keys will be available on the completion date.

After completion

Following completion, your solicitor will submit the stamp duty land tax return and pay any tax due on your behalf. They’ll also submit the application to register you as the new owner at the Land Registry and register your lender’s mortgage. Once registration is complete, you’ll receive copies of the updated title you’re your records.

Buying a property involves careful coordination and timely decisions at every stage. While every transaction is unique and may present its own challenges, having a clear understanding of your required actions and responsibilities together with proactive legal support can help your purchase progress as smoothly and efficiently as possible.