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Introduction to the Conveyancing of Land - The Stages in a Conveyancing Transaction

4 important questions on Introduction to the Conveyancing of Land - The Stages in a Conveyancing Transaction

What is the first stage leading up to the exhange of contracts?

Prior to entering into the contract, the buyer will investigate the property fully.

What happens when contracts are exchanged?

Until contracts are exchanged either party may withdraw from the transaction without penalty. However, once contracts have been exchanged, the parties are contractually bound to each other (fully effective).

What is the effect of contract?

After an exchange of contracts, the seller still has the legal title to the land. He must look after the property and not sell it to anyone else. The buyer may remain in the property until completion when the buyer pays the balance of the purchase price. Between contract and completion, the buyer has an equitable interest in the property. This equitable interest is known as an estate contract.

Explain the second stage in the conveyancing transaction, completion?

The second stage in the conveyancing is completion (the legal title of property does not pass until the second stage is complete). Parties must execute a deed (s 52 LPA 25). On completion, the legal title to the property is transferred to the purchaser using a conveyance or transfer.