What are the main problems in the conveyancing process and what can be done to fix them?

Annie Button has written an article on what the main problems in the conveyancing process are and what can be done to fix them.

Buying and selling a property is a complex transaction that can involve many stakeholders, and with plenty of opportunities for things not to go according to plan.

We’ve put together some of the most common reasons for delays, obstacles and setbacks that can occur during the conveyancing process, along with advice on how best to deal with them:

1. Slow to instruct a solicitor

Once an offer to buy a property has been accepted by the seller and their estate agent, contact details for legal advisers for both parties are exchanged and the matter passes into the hands of the conveyancers. To avoid any delay and get off to a swift start, it is therefore important that both the buyer and the seller should have their solicitor on standby, ready to go. This requires property buyers and sellers to do some advance research to compare conveyancing quotes and make a decision. Estate agents can help by sharing trusted contacts of conveyancers they’ve worked with and that they know to be competent and agile.

2. Unable to agree terms

The legal process is as much about agreeing the terms of sale as it is about carrying out local searches and checking all the paperwork. Terms such as the price paid, date of entry, fixtures & fittings included in the sale and more will form part of the contract that becomes legally binding upon exchange. If one or more of the conditions cannot be agreed on, a solution will have to be negotiated by the legal team on behalf of their client. Depending on the amount of compromise each party is willing to make, and the negotiating skills available, this can be a protracted situation that takes time to resolve.

3. Delays with valuations and surveys

Mortgage companies can be a law unto themselves, requiring a property valuation and sometimes additional checks before the loan can be approved. This can be a particular issue with non-standard properties such as short-lease flats, underpinned properties, modern timber-framed buildings and old thatched cottages. The timescale to get an inspection appointment and for the report to be decided on can vary greatly and is entirely out of the buyer’s control. Independent property surveys, too, may take a while to be set up and, once the site visit has taken place, for the findings to be made available. It’s best to get ahead of the curve and have a surveyor lined up as soon as the offer is accepted, so they can be booked in early in the process.

4. Discovering problems with the property

The survey is a key milestone in the conveyancing process. A clean(ish) bill of health usually means it’s full steam ahead, but if serious defects have been identified, this can cause delays and can jeopardise the whole transaction. Whether there’s a damp problem, timber decay, roof defect or other issues, the extent of the problem must be investigated, and decisions taken about who will fix the problem and how much this will cost. The conveyancing solicitor will advise on the survey finding and their implications and, where necessary, act on behalf of the client to negotiate a price reduction with the other side.

5. Delays with funding

If the finances aren’t available when needed, this can have potentially serious knock-on effects. What if the lender decides not to approve the mortgage after certain facts have come to light? What if you are waiting on other sources of funding such as an equity release application, investment dividends or trust income. When it comes to transferring the deposit at the point of exchange, or the balance at the point of completion, CHAPS is the most convenient and expedient method, but other money transfer paths including traditional banker’s drafts and cheques can take far longer. It is vital to keep in regular communication with the lender or other financial institution as well as the conveyancing solicitor to keep everyone in the loop.

6. Expiring mortgage offer

A particular bugbear is the fact that mortgage offers are usually made for 3-6 months. If there are delays elsewhere in the conveyancing process that result in the mortgage offer expiring before completion, that window will be missed. Sometimes it is possible to extend the offer, sometimes a new application will have to be made. In either event, a delay in the proceedings is inevitable and in the worst-case scenario, the transaction may fall through. Communicating timeframes to the conveyancing solicitor and estate agent will create maximum transparency, keeping everyone motivated and injecting a sense of urgency into the conveyancing journey.

7. Having incomplete paperwork

Missing and incomplete documentation is a common occurrence in the conveyancing process. From proof of ID to mortgage application forms, management packs for leasehold properties to property information, leasehold information, new home information and fitting & contents forms, there are numerous documents that must be completed and signed by both buyers and sellers. To keep the conveyancing process moving forward, it is important to remain in constant communication and return documents as quickly as possible, ideally avoiding taking a holiday until the transaction has completed.

8. Delays with local authority searches

Property searches are an important and integral part of the conveyancing process comprising local authority searches, title searches, water & drainage searches, environmental searches, flood risk report and more. While some local authorities are quick to respond within a few days, others can take much longer. One recent study identified Plymouth City Council to be the worst performing authority, taking an average of 36 days to complete a local land search. Most conveyancers are aware of the problems this can cause and aim to send off for local searches as early in the process as possible.

9. Missing planning permission or building regulations

Conveyancers have a duty to collect and examine all relevant planning permissions and building regulations for the property that’s about to change hands. Has the necessary approval been obtained to make additions or alterations to the property? The older the building, the longer the planning history that must be checked. If the building forms part of a Conservation Area, has designated listed status or other planning restrictions, it is even more important for the property to return a clean bill of health, since the new owner may find themselves criminally liable for any irregularities.

10. Property chain delays

Finally, the reason for the delay in the conveyancing process may lie elsewhere in the property chain. The more buyers and sellers are part of the same chain, all hoping to exchange contracts on the same day, the more fragile the whole construct becomes. A problem in one pairing will have a ripple effect, and a break in the chain can be inconvenient, time-consuming and costly. This is not something that you have control of, but it is something to be acutely aware of. The best estate agents develop a sixth sense, springing into action well before a problem becomes intractable to see how they can help.