DIY conveyancing

G_M

G_M wrote: »

That the book only explains the detail of Completion halfway through? I don't know, (haven't read it) but it seems possible.

And just to add to this, you'd have to be pretty rash (polite word!) to start DIY conveyancing without having first checked what's involved.

To start reading each section/chapter for the first time as and when you reach that point in the process, well, I can't even end this sentence politely!

Macadamia

Just found this thread - and thought I would tell you, Mrs Yardbroom that I am doing something similar, but am a little bit further down the line.

https://forums.moneysavingexpert.com/discussion/5304850

I will let you know how it goes.

terryw

G_M wrote: »

Is which bit true?

That the book only explains the detail of Completion halfway through? I don't know, (haven't read it) but it seems possible.

Or that there is "inherent protectionism in the system"? I would not describe it that way.

Or that "lay status is a practical barrier for those selling with a mortgage to pay off on their property, or buying with the help of a mortgage (or both)"? Yes.

You have to understand how mortgages (and Charges on property Title) work, and how conveyancing works. No buyer wants to buy a property with a Charge registered on it. They want 'clean' ownership (other than their own mortgage of course). And early on during the process (before Exchange of contracts) a buyer (or their solicitor) will examine the Title to check the seller genuinely owns the property, AND to check what Charges exist.

Where a Charge is found (ie the seller has a mortgage), the buyer will either want it removed before they buy, or will want an assurance that it will be removed. Most sellers cannot afford to pay off the mortgage - they need to sell the property first, get the sale money, and use that to remove the Charge.

Now, if you DIY your conveyancing, you can say to the buyer "Don't worry. As soon as you give me your £500,000 I will pay off my morgage nd remove the Charge. Honest Injun!"
The buyer will say "You gotta be kidding! How do I know you won't vanish off to Goa with my cash?"

Solicitors, however, belong to a professional body, with codes of conduct and reputations/careers at stake. So the seller's solicitor makes the same promise, not to the buyer but to the buyer's solicitor, who knows he can trust the promise, because it is not made by G_M, but by G_M's solicitor - Trusty, Lawful & Reliable.

So in brief, DIY selling only works if:
* there is no mortage or
* the seller can pay off the mortgage before he receives the sale money at Completion.

edit: Paying over the £500K cash to a DIY seller is also unwise before Exchange of Contracts. This happened to me last time I sold and I tell you, Goa was tempting.......! But that's another story.

An excellent post.

In the olden days prior to electronic registration this was not a problem. Completion was arranged at the offices of the mortgage holder and two bankers draft were handed over. One to the mortgage holder and the other being the balance to seller or their solicitor. Alas this no longer happens.

I always felt happier with this procedure rather than accepting a solicitors undertaking to redeem the existing mortgage!

wwl

Don't forget that there are conveyancers who aren't solicitors, and charge rather less.
Another option is to hire a solicitor for an hour or so to just go through paperwork etc. and answer anything you're unsure about.

teddysmum

I sold my father's bungalow in the early 1990s without solicitors; just a couple of valuations from estate agents and printing my own document using a library book for guidance.


I did know that my father owned the house, outright and had bought some 15 years earlier, using a solicitor , so any problems would have cropped up then.


The buyers' solicitor asked me to make some very minor changes and the buyers asked for £200 off, when a pipe burst and caused a small amount of damage, so things went quite smoothly.


However,I can't remember any details, but do think there was some kind of change in law, as I recall thinking that under the new system,i would not have been able to do things so cheaply.