By Kreston Solicitors · 16 August 2026
Buying your first home is likely to be one of the largest financial commitments you make.
Finding a suitable property and agreeing a price are important milestones, but they do not transfer legal ownership. The purchase must pass through a conveyancing process during which the property’s title, contract, searches, mortgage conditions and other legal matters are investigated.
In England and Wales, an accepted offer is not normally legally binding until contracts are exchanged. Before that point, either party may usually withdraw or seek to renegotiate.
Understanding each stage can help first-time buyers respond promptly, recognise where delays may occur and avoid committing themselves before the legal and financial position is clear.
Work Out the Full Cost Before Making an Offer
The purchase price is only one part of the cost of buying a home.
A first-time buyer may also need to budget for:
• a mortgage deposit;
• conveyancing fees;
• property searches;
• a survey;
• mortgage arrangement or valuation fees;
• Stamp Duty Land Tax or Land Transaction Tax;
• Land Registry fees;
• removals;
• buildings insurance; and
• initial repairs, furnishings and utility costs.
Mortgage products may be available with relatively small deposits, but a lower deposit can affect the interest rate and range of products available. MoneyHelper advises that many buyers need a mortgage deposit of at least 5%, although the precise requirement depends on the lender and mortgage.
The legal professional’s quotation should distinguish between their fee and disbursements paid to third parties, such as search providers and HM Land Registry.
Obtain a Mortgage Agreement in Principle
A mortgage agreement in principle gives an indication of how much a lender may be prepared to advance based on initial financial information.
It can help establish a realistic property budget and demonstrate to an estate agent that you have considered how the purchase will be funded.
An agreement in principle is not a guaranteed mortgage offer. The lender will still need to assess your full application, income, expenditure, credit history and the particular property.
Avoid committing the maximum amount a lender appears willing to advance without considering monthly repayments, service charges, maintenance and changes in interest rates.
Choose a Solicitor or Licensed Conveyancer
The legal work involved in transferring a property is called conveyancing.
A solicitor or licensed conveyancer acting for the buyer will normally:
• examine the seller’s title;
• review the draft contract;
• order searches;
• raise legal enquiries;
• report on the mortgage offer;
• advise on joint ownership;
• arrange exchange of contracts;
• handle completion funds;
• submit the tax return where required; and
• register the buyer’s ownership and mortgage.
A mortgage lender will normally require an approved conveyancer to protect both the lender’s and buyer’s interests. HM Land Registry also notes that lenders may insist on legal representation where a mortgage is involved.
It is sensible to appoint a conveyancer before or immediately after making an offer so identification and funding checks can begin without delaying the transaction.
Complete Identity and Source-of-Funds Checks
Property transactions involve the movement of substantial sums and are subject to anti-money-laundering controls.
The estate agent, mortgage lender and conveyancer may all request proof of identity, proof of address and evidence showing where the purchase funds originated. This can include bank statements, payslips, savings records, inheritance documents or evidence of a financial gift.
The conveyancer may need to understand both the immediate source of the funds and, in some cases, how the buyer accumulated them.
Tell the conveyancer at the outset if part of the deposit is being provided by a parent or another third party. A gifted deposit may require a formal declaration, identification checks on the donor and confirmation that the donor will not obtain an undisclosed interest in the property.
Funds should not be moved through several accounts shortly before completion without retaining evidence of each transfer.
Making an Offer
Offers are usually made through the estate agent.
The offer can be expressed as being subject to contract, survey, mortgage approval and satisfactory legal investigation.
An accepted offer in England and Wales does not itself create a binding obligation to buy or sell. The price can still be renegotiated where, for example, a survey identifies a significant defect.
The estate agent will usually ask for details of your conveyancer, mortgage position, deposit and proposed timescale. Once the offer is accepted, a memorandum of sale is commonly sent to the buyer’s conveyancer, seller’s conveyancer and other relevant parties.
The memorandum records the agreed price and contact details but is not the binding sale contract.
The Estate Agent Acts for the Seller
Although an estate agent may help the transaction progress, they are normally instructed and paid by the seller.
A first-time buyer should not treat the estate agent as their independent legal or surveying adviser.
Important representations about the property should be passed to the conveyancer and confirmed through the contract documents, enquiries or survey where appropriate.
Do not rely solely on verbal assurances that an extension has planning permission, a parking space is included or building works are about to be completed.
Applying for the Full Mortgage
After the offer is accepted, the buyer usually submits a full mortgage application.
The lender will assess the buyer and arrange a valuation of the property. The purpose of the lender’s valuation is principally to determine whether the property provides adequate security for the mortgage. It is not necessarily a detailed survey of its condition.
The lender may impose conditions relating to repairs, insurance, specialist reports or the type of property.
A mortgage offer should be checked carefully for:
• the amount being advanced;
• the interest rate;
• the repayment method;
• the mortgage term;
• fees;
• conditions;
• the expiry date; and
• any retention or requirement for further work.
The buyer should not exchange contracts until a satisfactory written mortgage offer is available unless they are able and willing to complete without the loan.
The Lender’s Valuation Is Not a Building Survey
A lender’s valuation may be brief and may not identify defects that do not materially affect the lender’s security.
A buyer should consider instructing an independent surveyor to inspect the property.
The appropriate survey can depend on the property’s age, condition and construction. A relatively modern conventional home may require a different level of inspection from an older, extended or visibly defective building.
A survey may identify matters such as damp, roof defects, structural movement, drainage concerns, outdated services or unauthorised alterations.
The surveyor examines the physical condition. The conveyancer investigates legal ownership, rights, restrictions and documentation. These are separate but complementary roles.
Receiving the Draft Contract Pack
The seller’s conveyancer prepares and sends a contract pack to the buyer’s conveyancer.
This will commonly include:
• the draft sale contract;
• official copies of the title register and title plan;
• the property information form;
• the fittings and contents form;
• guarantees, planning documents or certificates supplied by the seller; and
• leasehold information where the property is leasehold.
The contract identifies matters such as the property, purchase price, parties and proposed completion arrangements.
Government guidance states that the sale contract can include the property boundaries, fixtures and fittings, legal rights and restrictions, planning matters, services and completion date.
The contract pack is the starting point for the buyer’s legal investigation rather than proof that every issue has already been resolved.
Investigating the Legal Title
The title register records the registered owner and important legal matters affecting the property.
The conveyancer checks that the seller is entitled to sell and reviews:
• the property description;
• rights benefiting the property;
• rights benefiting neighbouring land;
• restrictive covenants;
• mortgages and charges;
• restrictions on registration; and
• matters referred to in earlier deeds.
A right of way may allow the homeowner to use a private road or shared passage. It may also allow a neighbour to cross part of the property.
A restrictive covenant may limit building work, business use, parking or another activity.
The title plan generally shows the property’s approximate general boundaries rather than determining every boundary with survey-level precision. Concerns about fences, gardens, parking spaces or access should be raised before exchange.
Reviewing Fixtures and Fittings
The fittings and contents form records which items the seller intends to leave or remove.
This may cover:
• kitchen appliances;
• light fittings;
• curtains and blinds;
• fitted wardrobes;
• garden structures;
• carpets;
• satellite equipment; and
• other household items.
The buyer should review the form rather than assume that everything seen during the viewing is included.
Any separately negotiated items should be recorded clearly before exchange.
Property Searches
A conveyancer normally orders searches after receiving instructions and the required search funds.
Common searches include:
• a local authority search;
• a drainage and water search;
• an environmental search; and
• location-specific searches recommended for the property.
Government guidance identifies local authority, water and drainage, and environmental searches as standard enquiries commonly arranged after an offer is accepted.
Searches investigate matters that may not be apparent from viewing the property or examining the title alone.
The Local Authority Search
A local authority search may reveal information concerning:
• planning permissions;
• building regulations;
• enforcement notices;
• conservation areas;
• listed building status;
• tree preservation orders;
• road schemes;
• compulsory purchase matters; and
• whether roads serving the property are publicly maintained.
It usually relates to the property searched rather than every development in the surrounding neighbourhood.
Buyers concerned about nearby development should also review local planning records and discuss any specific concerns with their conveyancer.
The Drainage and Water Search
The drainage and water search may confirm whether the property is connected to public water and sewerage services.
It can also provide information about the location of public sewers and whether a sewer crosses the property.
This can be important where the buyer intends to extend or build over part of the land.
The search should be read alongside the title, survey and any information supplied by the seller.
The Environmental Search
An environmental search may assess risks including:
• contaminated land;
• flooding;
• ground instability;
• landfill sites; and
• other environmental matters.
Further specialist reports may be recommended where the initial search identifies an elevated risk.
A search report does not necessarily prove that flooding, contamination or subsidence will occur. It identifies matters requiring further investigation or consideration.
Additional Searches
The property’s location may justify further searches.
These can include mining, chancel repair, infrastructure, flood, commons registration or planning reports.
The conveyancer should explain why an additional search is recommended rather than automatically ordering unnecessary products.
A mortgage lender may also require particular searches or search insurance.
Raising Enquiries with the Seller
After reviewing the title, searches and contract documents, the buyer’s conveyancer raises enquiries with the seller’s conveyancer.
These may address:
• inconsistencies in the title;
• missing planning or building regulation approvals;
• guarantees;
• access arrangements;
• boundary issues;
• disputes;
• alterations;
• occupiers;
• service charge accounts;
• management information;
• drainage; and
• the removal of the seller’s mortgage.
The seller responds with assistance from their conveyancer.
Some questions are legal and properly directed through the conveyancers. Questions about condition should normally be considered through the survey and inspection.
The process continues until the buyer’s conveyancer is satisfied that material issues have been answered or clearly explained to the buyer.
Planning Permission and Building Regulations
Alterations such as extensions, loft conversions, structural changes and window replacements may require planning permission, building regulation approval or both.
The requirements are different. Planning permission concerns the development and use of land, while building regulations address standards of construction and safety.
The conveyancer checks documents supplied by the seller and relevant search results but does not physically inspect whether the work was completed correctly.
The surveyor should be told about alterations so their condition and construction can be considered.
Where an approval or certificate is missing, the options may include obtaining documentation, further investigation, retrospective approval, an indemnity policy or reconsidering the purchase. The correct response depends on the specific defect and the buyer’s plans.
Freehold and Leasehold Ownership
A freehold purchase normally includes ownership of the property and land indefinitely, subject to any rights and restrictions.
A leasehold purchase gives the buyer the right to occupy the property for the remaining term of a lease. The freeholder retains the superior ownership, and the lease governs how the property may be used.
Flats are commonly leasehold, although leasehold houses also exist.
A first-time buyer purchasing leasehold property must understand both the physical home and the contractual obligations contained in the lease.
Matters to Check When Buying Leasehold
The conveyancer should report on:
• the years remaining on the lease;
• ground rent;
• service charges;
• buildings insurance;
• restrictions on alterations, pets or subletting;
• management arrangements;
• reserve funds;
• major works;
• administration fees; and
• the buyer’s obligations after completion.
Government leasehold guidance recommends checking the remaining term, current service charges, previous charge history, anticipated major works, ground-rent provisions and restrictions before committing to the purchase.
A shorter lease may affect the property’s value, mortgageability and future cost of extension.
Service charges can change from year to year, and a buyer may become responsible for substantial future works even where those works were planned before the purchase.
New-Build Purchases
A new-build purchase may involve:
• a reservation agreement;
• a reservation fee;
• a short exchange deadline;
• buying before construction is complete;
• an estimated rather than fixed completion date;
• planning agreements;
• estate charges;
• a structural warranty; and
• a snagging inspection.
Government guidance notes that developers may require exchange and payment of a deposit shortly after reservation, making it important for the buyer, lender and conveyancer to understand the deadline.
The contract may allow completion to take place after the developer gives notice that the property is ready.
The buyer should understand what happens if construction is delayed and whether there is a long-stop date allowing the contract to be ended.
Buying with Someone Else
Buyers purchasing together must decide how the beneficial ownership will be held.
The main choices are joint tenants and tenants in common.
Joint tenants have equal rights to the whole property, and ownership normally passes automatically to the surviving owner if one dies.
Tenants in common can own stated shares, and each owner’s share can pass under their will rather than automatically to the other owner.
Tenants in common may be appropriate where buyers contribute different deposits or wish to preserve defined shares.
A declaration of trust can record contributions, ownership percentages and what should happen if the property is sold or one owner wants to leave.
The ownership decision should be considered with wills and wider financial arrangements rather than selected as a formality shortly before completion.
Gifts and Family Contributions
Parents or relatives often contribute towards a first-time buyer’s deposit.
The conveyancer and lender must be told whether the money is:
• an outright gift;
• a loan;
• provided in return for a share of the property; or
• subject to another arrangement.
A lender may not accept a private loan or undisclosed beneficial interest.
The donor may need to sign a gifted-deposit declaration confirming that the funds do not need to be repaid and that they will not acquire rights over the property.
Where the family expects repayment or an ownership share, separate legal advice and formal documentation may be necessary.
Receiving the Mortgage Offer
The conveyancer receives a copy of the formal mortgage offer and instructions from the lender.
They check whether the title and transaction meet the lender’s requirements.
The buyer should review the financial terms themselves and ask the lender or mortgage adviser about any part they do not understand.
The conveyancer may need to report a matter to the lender, such as a gifted deposit, lease defect, purchase incentive or difference between the price and valuation.
The lender may approve the matter, impose conditions, change the offer or decide not to lend.
The Report on Title
Once the legal work is sufficiently advanced, the conveyancer sends the buyer a report explaining the property and contract.
The report may cover:
• the legal title;
• searches;
• rights and restrictions;
• replies to enquiries;
• the mortgage;
• ownership arrangements;
• tax;
• the deposit;
• exchange;
• completion; and
• any unresolved risks.
Leasehold buyers should also receive a detailed explanation of the lease and management information.
Read the report and supporting documents carefully. Ask questions before authorising exchange because the ability to withdraw or renegotiate becomes severely restricted afterwards.
Signing the Documents
Before exchange, the buyer may sign:
• the purchase contract;
• the mortgage deed;
• the transfer deed; and
• a declaration of trust where relevant.
Signing the contract does not itself normally make the transaction binding. The binding commitment arises when the conveyancers formally exchange contracts.
Documents should be signed exactly as instructed and returned promptly.
A witness must normally be independent and physically present where a signature requires witnessing.
Agreeing the Completion Date
The completion date is the date on which the balance of the purchase money is paid and ownership passes to the buyer.
The date must be agreed with the seller and any other transactions in the property chain.
Before agreeing a date, the buyer should consider:
• mortgage-offer expiry;
• notice required by a landlord;
• work commitments;
• insurance;
• availability of funds; and
• whether the property will be vacant.
A proposed date is not secure until contracts have been exchanged.
Avoid booking non-refundable removals or ending accommodation based only on an informal target.
Exchange of Contracts
Exchange takes place when the buyer’s and seller’s conveyancers formally confirm the contract.
At that point, the agreement becomes legally binding. The parties normally cannot withdraw without serious financial and legal consequences.
The contract records the completion date and terms of the sale.
A contractual deposit is normally paid or accounted for on exchange. Under the standard arrangements, the full contractual deposit is commonly 10%, although a lower amount may be agreed where the buyer is using a smaller mortgage deposit or the funds are tied into another transaction.
The mortgage deposit and contractual exchange deposit are connected but not necessarily identical concepts. The conveyancer will explain the amount required for the individual transaction.
What Must Be Ready Before Exchange?
The buyer should normally ensure that:
• the title has been investigated;
• searches have been reviewed;
• important enquiries have been answered;
• the survey has been considered;
• the written mortgage offer is satisfactory;
• the deposit is available;
• ownership arrangements have been agreed;
• the completion date is acceptable;
• insurance arrangements are understood; and
• the buyer is prepared to complete even if personal circumstances change.
MoneyHelper recommends confirming that the survey, searches, mortgage offer, deposit and completion arrangements are in place before exchange.
Exchanging simply because the seller or estate agent is pressing for progress can expose the buyer to risks that have not been properly investigated.
Buildings Insurance
Responsibility for insuring the property can pass to the buyer from exchange under the sale contract, even though the buyer has not yet received the keys.
The conveyancer will explain when the policy must begin.
A lender will normally require suitable buildings insurance from the relevant date.
Leasehold flats are commonly insured under a block policy arranged by the freeholder or management company, with the cost recovered through the service charge. The buyer should still understand the cover and whether separate contents insurance is needed.
Work Between Exchange and Completion
After exchange, the buyer’s conveyancer prepares for completion.
This may involve:
• requesting mortgage funds;
• carrying out final Land Registry and bankruptcy searches;
• preparing the completion statement;
• collecting the balance from the buyer;
• confirming the transfer documentation; and
• liaising with the seller’s conveyancer.
The final searches are intended to confirm that no unexpected registration or insolvency matter has arisen before the funds are released.
The buyer receives a completion statement showing the purchase price, deposit, mortgage funds, tax, fees and amount required to complete.
Transferring the Completion Funds Safely
Property transactions are a target for payment-diversion fraud.
Criminals may impersonate a conveyancer or intercept emails and provide false bank details.
Government guidance warns buyers to verify that they are communicating with the correct organisation and transferring funds to the correct account.
Confirm bank details using a trusted telephone number obtained independently, not one appearing only in an unexpected email.
Be suspicious of any last-minute message claiming that the conveyancer’s client-account details have changed.
A legitimate law firm will have clear procedures for confirming payment instructions.
Completion Day
On completion, the buyer’s conveyancer transfers the required purchase money to the seller’s conveyancer.
Once the funds are received:
• the transaction completes;
• the seller must vacate in accordance with the contract;
• the estate agent can normally release the keys; and
• the buyer becomes the owner.
The Law Society explains that ownership passes and keys can be collected once the completion process has been followed and the seller’s conveyancer has received the money.
Completion often takes place around the middle of the day, but the precise timing depends on banking transfers and any property chain.
Do not arrange to enter the property before the estate agent or conveyancer confirms that completion has occurred.
Inspecting the Property Before Completion
Where possible, arrange a final viewing shortly before completion.
Check that:
• the property has not suffered significant damage;
• agreed fixtures and fittings remain;
• the seller is preparing to vacate;
• rubbish or unwanted contents have not been left unexpectedly; and
• any specifically agreed work appears to have been completed.
Raise a concern immediately through the conveyancer.
After completion, practical remedies may be more difficult, particularly where the problem could have been identified during a final inspection.
Stamp Duty Land Tax in England
Stamp Duty Land Tax applies to qualifying property purchases in England.
Under the current first-time buyer rules, eligible buyers pay:
• no SDLT on the first £300,000; and
• 5% on the portion between £300,001 and £500,000.
No first-time buyer relief is available where the purchase price exceeds £500,000. Every buyer involved in the purchase must qualify as a first-time buyer for the relief to apply.
A person who has previously owned or acquired an interest in residential property, including property outside the UK, may not qualify.
The buyer’s conveyancer will usually prepare and submit the SDLT return and arrange payment from the completion funds.
Land Transaction Tax in Wales
Property purchases in Wales are subject to Land Transaction Tax rather than SDLT.
Welsh tax bands and rules are separate from those applying in England. Wales does not operate the same SDLT first-time buyer relief.
The amount due depends on the price and whether the main or higher residential rates apply.
The conveyancer normally submits the LTT return to the Welsh Revenue Authority and pays the tax using funds collected from the buyer.
Registration at HM Land Registry
After completion, the conveyancer deals with the post-completion formalities.
These commonly include:
• paying SDLT or LTT;
• submitting the registration application;
• registering the buyer as owner;
• registering the lender’s mortgage; and
• removing the seller’s mortgage from the title.
Registration takes place after the purchase has legally completed. A delay in HM Land Registry processing does not normally prevent the buyer from moving into and owning the property from completion.
Some registration applications can take several months to process, depending on their type and complexity.
The conveyancer should deal with any questions raised by HM Land Registry and provide confirmation when registration is complete.
Keep Your Documents
Retain copies of:
• the title information;
• lease and management documents;
• planning approvals;
• building regulation certificates;
• survey;
• insurance information;
• completion statement; and
• tax certificate.
These documents may be needed when the property is remortgaged, altered or sold.
Keep evidence of the purchase price and improvement costs because they may be relevant to future tax or ownership calculations.
Leasehold owners should also retain service charge accounts, consents and correspondence with the managing agent or freeholder.
Why Property Purchases Are Delayed
Common causes of delay include:
• slow mortgage approval;
• missing title documents;
• search results;
• unanswered enquiries;
• leasehold management packs;
• gifted-deposit checks;
• survey problems;
• probate sales;
• property chains;
• planning irregularities;
• lender conditions; and
• parties failing to return documents promptly.
Government guidance states that buying a home takes around five months on average, with chains and other complications capable of extending the process.
Responding quickly to your conveyancer can help, but some delays depend on other organisations and cannot be resolved simply by repeatedly contacting the estate agent.
When a Buyer Can Withdraw
Before exchange, a buyer can normally withdraw without breaching the sale contract.
They may still lose money already spent on legal work, surveys, searches, mortgage fees or a new-build reservation.
After exchange, withdrawal is a breach of contract unless the contract permits it.
The buyer may lose the deposit, face a claim for further losses and remain liable to complete the purchase.
This is why all material legal, financial and survey issues should be considered before authority to exchange is given.
Gazumping and Renegotiation
Because the transaction is not binding before exchange, a seller may accept a higher offer from another buyer. This is commonly known as gazumping.
A buyer may also seek to reduce their offer following a poor survey or valuation, sometimes described as gazundering.
Neither side can assume the agreed price is final until exchange.
Proceeding efficiently, arranging finance early and maintaining clear communication can reduce uncertainty but cannot entirely eliminate the risk.
Common First-Time Buyer Mistakes
Problems frequently arise when buyers:
• assume an accepted offer is legally binding;
• rely on the lender’s valuation instead of obtaining a survey;
• delay appointing a conveyancer;
• fail to disclose a gifted deposit;
• move purchase funds without retaining evidence;
• ignore lease length or service charges;
• accept verbal assurances about alterations;
• misunderstand joint ownership;
• book removals before exchange;
• transfer money using unverified bank details;
• exchange before receiving the mortgage offer; or
• fail to budget for tax and post-completion costs.
Many of these mistakes can be avoided by asking questions early and providing complete information to the conveyancer.
Taking a Careful Approach to Your First Purchase
The conveyancing process is intended to establish that the seller can transfer the property, identify legal obligations affecting it and ensure that the buyer and lender receive the ownership and security they expect.
The main stages are appointing a conveyancer, proving the source of funds, arranging the mortgage and survey, reviewing the title and searches, resolving enquiries, exchanging contracts, completing and registering ownership.
Not every issue discovered during conveyancing means the purchase must be abandoned. Some matters can be explained, corrected, insured against or reflected in the price.
The buyer must nevertheless understand the issue and make an informed decision before becoming legally committed.
Taking time to review the title, survey, mortgage and contract before exchange can reduce the risk of discovering after completion that the first home comes with unexpected restrictions, liabilities or structural problems.
Ergun Eren
Director / Licensed Conveyancer