what does conveyancing mean

Get to know what does conveyancing mean

The word conveyancing, like many other English words, has extraordinary origins. Most first-time home buyers wonder what does conveyancing mean. Conveyancing originated from the business practice of transferring ownership titles from one person to the other. Exchange of property ownership has been the norm from time immemorial. People have been trading foods, clothes, and other items from ancient times till now. Advancement in technology has resulted in the production of more complicated goods in the market. Now, ownership of complicated commodities such as cars, aeroplanes and houses is being transferred from one person to the other. All these methods of ownership are in some way a type of conveyance.

Conveyancing basics

Conveyance in its strictest terms involves the exchange of ownership with strict adherence to a given set of rules and conditions. This definition distinguishes conveyancing from the ordinary purchase of goods.  Simples purchases of minor items such as bread and milk are not considered conveyance. The conveyance must be guided by rules and regulations with far-reaching consequences to the parties involved.  Penalties such as heavy financial loss and incarcerations are consequences of poor conveyance. These penalties do not occur in an ordinary business transaction.

There are many businesses that are guided by strict rules.  The particular nature of these rules depends on the type of business in question. Real estate properties have governing laws that are different from those of automobile purchase.  Conveyance in the UK mostly refers to exchange or registration of real estate properties. Facilitators of property conveyance are referred to either as conveyancers or solicitors. These are lawyers who are highly trained on the rules of conveyance.  They help ordinary people go through conveyance without getting into trouble with the law or losing money.

Rules of proper conveyancing

There are many sets of rules of conveyance. Each set of rules governs transaction of a given type of property ownership. Rules for buying commonhold properties are different from those of leasehold properties. The same goes for other kinds of property ownerships. Occasionally, the rules of conveyance may overlap. This occurs because of the complexity or real estate transaction. A person who is buying a freehold property and selling a help to buy property may be confronted with more than one set of laws of conveyance. Fortunately, solicitors are capable of negotiating through any situation that comes up during conveyance.

Steps of conveyancing

Real estate conveyance involves procedural steps each of which has in impact on the outcome a transaction. There are some steps in conveyance that are common to all types of property conveyance and those that are more specific. The typical steps of conveyance include the exchange of contracts, the setting of completion dates, property research, completion of conveyance, and registration of properties. Property research and exchange of contracts may occur concurrently. The rest usually occur following the order mentioned above.

Exchange of contracts marks a step when both a seller and a buyer is committed to carrying out conveyance till completion.  A buyer or seller who exits conveyance after an exchange of contracts will lose money or face litigation. Property research guarantees buyers that the property meets their desired requirements and that no ownership disputes will arise in the future.

Common Conveyancing Terms Explained

conveyancing termsIn the property industry in the United Kingdom, many conveyancing terms are used, and most people, especially new buyers and sellers find many of the terms difficult to understand. Keeping this in mind, we have explained some of the common terms used in this industry.

A contract is the most important document in the conveyancing process. It contains all the legal agreements that specify the details of the property to be purchased or sold. In other words, it explains the conditions of the transaction. The conveyancer of both buyer and seller prepare the draft contract and give a copy to the counterpart to evaluate. The contract, once signed, commits both the parties to the transaction and is legally binding.

The agreement is another conveyancing term for the contract.

An auction is a place where a land is sold or purchased. In this public sale, the bidder that places the highest bidder becomes the next owner of the property. Contracts are exchanged once a bidder wins the auction.

Bankruptcy check
Conveyancers are responsible for conducting research to find out if a buyer had faced bankruptcy in the past. It will also help him find out if the buyer is about to go bankrupt.

Boundaries, as the name suggests, refer to the extent of a land. They are marked by hedging, walls or fencing, but are not necessarily shown on the deeds.

Chain refers to the sequence of a lot of buyers and sellers, and they depend upon the proceeding purchase. Most sellers may be buyers at the same time. However, sellers can’t buy another property unless they have sold the property they had. This creates a chain of sellers and buyers that depend on each other for the transactions.

Chain free
House, land or any property is called chain free when it doesn’t depend on the sale or purchase of another property is called a chain free property.

Completion date
It’s the date on which the property transaction comes to an end, and the legal ownership goes to the buyer.

Completion settlement
Completion settlement is a financial statement that contains the details of all the financial transactions. Usually, it includes the fees of the conveyancer as well.

Conditions of sale
In conveyancing terms, conditions of sale refer to the terms that both the parties agree. The Law Society is the authority that sets conditions for the sale of a residential property. While the Law Society sets standard conditions, special conditions are set by the conveyancer or solicitor.

Conveyancers are solicitors or professionals who are responsible for managing all the legal matters related to the property transactions.

Also called the title deeds, a deed is a legal document that has the information about the ownership of a land or property.

Land Registry
Land Registry is short for Her Majesty’s Land Registry, which is a government authority that is responsible for maintaining the record of lands and ownership.

Searches are done by the conveyancer to find out about information relating to the property in the transaction.

Stamp Duty
In the UK, Stamp Duty is a tax that every buyer is bound to pay when buying a land of a value exceeding £125,000.

Survey is a structural report about a property, such as a house or land that is on the market for sale. This report is prepared by an expert building surveyor and gives information about the structure of the property in addition to helping with the evaluation.

Transfer document
This formal registry document confirms the transfer of ownership title of the property.
If you are going to buy or sell your property with the help of a conveyancer, understanding these terms is a good idea, as this will help you go through the process with ease.

Buying property with cash vs mortgage

Conveyancing cash buyerPaying for a home by cash looks smart as it avoids sinking deep into a long term loan that needs to be paid for years to come. A mortgage is a long term cash loan secured on a house whose terms may exceed up to 30 years divided into monthly payments along with an interest on the loan. However, a mortgage can cost you nothing up front and keep your money or savings in the bank except what has to be paid in disbursement, solicitor’s fees, and other premiums on the house. Both ways each have good sides and down sides, and we will be discussing them in this article. But, first we should at least define them in separate headings.

Cash Payments

This is simple; you will be paying for the cost of house with the cash or the savings in your hand. You will pay the price with paper cash payment or through bank transfer based on how the seller wants the money from you against his/her property. A cash payment might be divided further into small terms for each stage of completion of the property transaction until the final payment is made.


A mortgage is a loan that bank or house financing companies give you against a property in England and Wales. It is a good option for both a wealthy person and a middle class resident of England or in Wales because paying a large cash payment will leave a person with an empty account or not liquid enough to cover future payments against any running costs on the house. You  simply pay the premium price on the house and the fee of the Mortgage Company, the remaining amount of the mortgage to be paid in small term monthly payments. There are many different types of mortgages with different ending terms.

Cash Payment in Detail

When someone buys a house with cash, they have the time advantage of finding any good property in any county of England and Wales. They can easily decide where they can put their money on and also check for any rise or fall in the prices of the properties in one property market of a county or in any other residential societies in England.

Advantages of Cash Payments

There are many upsides of buying home with cash in hand. A few of these advantages are outlined as below:

No Credit History Needed

Getting a mortgage will require you to check for your credit score; on the other hand a cash payment will not require credit history check. However, the buyer must have a large amount of cash in their savings to pay for the house price.

Risk Free Saving

A house bought with Cash is a risk free Asset, you are spending money on the house with the risk of losing any, on the other side mortgage will require you to pay a premium amount along with monthly paybacks, and in case you are required to sell the house before the end date of the mortgage, you will have to pay the penalty as written in the mortgage deal.

Negotiating power

Having cash in hand will give the buyer negotiating power that might not enjoy in case of mortgage payment. It can help in bringing the cost down as compared to mortgage payments.


The disadvantages of cash payments are listed below:

Less Liquidity

As you are going to pay with cash and other liquid assets, you might face future shortage of liquid or cash assets by your side.

No tax advantage

Buyers with cash payment will not receive any tax advantages as allowed to mortgage buyer on their income taxes.

Advantages and Disadvantages of Mortgage

Few are some upsides and downsides of mortgage payments on homes in UK:

  1. A mortgage will give you breathing space for saving your liquid and cash assets in your bank account in case of any future payments on the cost of repairing the property or other running costs of the house.
  2. Mortgaged homes are tax deductible on the interest that people pay to the mortgage companies on yearly bases.
  3. A mortgage on a house is a safe payment, money paid to the bank will stay safe until you decide to sell your house. Moreover, if the price of the home goes down so does the mortgage and the interest on it, therefore, mortgage is often considered as safe investment.


To buy a home with cash or mortgage depends upon a several different merits that you have to decide yourself. If you have less cash than the full amount, you should require a mortgage otherwise you will find yourself in trouble managing the future expensive of your home. If you need more information about buying a home in England, you can visit Conveyancing for cash