What Is A Conveyancing Contract?

If you have ever bought or sold a residential property, you will have come across a conveyancing contract. However, if you have never sold or bought a property before, you may never have come across one of these contracts before. If this sounds like you, then our conveyancing lawyers in Peterborough have put together this blog post to help you.

Firstly, let’s look at what a contract is. It is an agreement between two or more parties. The contract lays out legal rights and obligations for both parties. There are four parts within a contract that make it a legally binding contract. You need an offer and an acceptance of the offer. There must be a consideration which is the price paid in exchange for the fulfilment of the promise. Finally, there must be an intention to create legal relations.

While most contracts do not need to be in writing, this is not the case for contracts for the sale of land. This is clearly outlined in section 2 of the Law of Property (Miscellaneous Provisions) Act of 1989. In addition to this, a conveyancing contract must incorporate all of the terms in one document. It must also be signed by all parties.

Most conveyancing contracts have a very standard layout. The first page will include the particulars of the property or land. For example, the details of all parties, price, deposit and completion date. This is also the page that you must sign as a party of the contract arrangement.

There will be terms incorporated into the contract. These are known as the ‘standard conditions of sale’. They are produced by the Law Society. While it is not a legal requirement to use a conveyancing solicitor in Peterborough for the standard of sale, it is highly recommended. Many conveyancing contracts will state that a conveyancer is subject to the contract.

Your conveyancing contract will cover most foreseeable eventualities that could arise from a property transaction. This ensures that all parties are protected throughout the purchase process of the property. However, the two most common examples of foreseeable eventualities that are covered is what happens if completion is late and who insures the property before completion. These are both things our conveyancers in Peterborough can go through with you.

Need help with the process for selling or buying your first property? Contact our friendly conveyancing team now.