Monthly Archives: March 2017

what do conveyancers do

The answer to the question of what do conveyancers do

Conveyance involves all the activities that occur during property purchase and registration. These activities are complicated and cannot be handled by ordinary people. They are better left for professionals who special in estate transactions. These professionals are called conveyancers. Most new home buyers are still stuck with the question of what do conveyancers do.  Their curiosity is understandable given that they do not have any experience in the property market. Those who have bought or sold houses know that there are so many nuances in a conveyance that only experts can successfully put up with.

Experts of property transaction are known as conveyancers or solicitors. Solicitors are highly trained lawyers. They have gone through years of law school and have specialised in nothing else but property transaction. They know everything there is to know about this business.

Make property transaction easier

Solicitors specialising in property law work for buyers, sellers, insurance firms and any other party that has an interest in real estate transaction. Each of these people has his individual needs even in a transaction where they are all involved.  Most real estate transactions involve almost all of these parties. A good example is a buyer who wants to purchase a property through mortgage but also trying to insure it.  An insurance firm and a mortgage lender will need advice about the feasibility of the property transaction. The buyers and sellers in that transaction will require the solicitor during every step of the transaction.

Advise better options to clients

Buyers need solicitors to advise them about the nature of property ownership they intend to get into. One type of property ownership is usually very different from another. A buyer may qualify for one type of ownership and not another. The various types of property ownerships were designed by the government to enable people in all situations to own property. Poor people can now own properties just like their richer counterparts. Couples and friends also have their home ownership schemes.

Solicitors represent buyers and sellers in the conveyance.  Sellers need to draw drafts of agreements that will govern their property transactions. They cannot do this without the input of solicitors. The legal nuances of conveyance make contract drafting a professional business.  A buyer also uses the services of a lawyer to scrutinise a seller’s draft. They can either accept or reject the draft depending on how it suits them.

Act as mediators

Buyers and sellers may never really meet during conveyance. Solicitors usually mediate between buyers and sellers during the whole of conveyance. Online conveyance has made conveyance even more abstract. A buyer can purchase a property without ever meeting its original owner. Solicitors undertake all communications. Solicitors must come up with communication media that suit their clients. The most used means of communication include phone calls, postal mail and the Internet.

Property transaction can go berserk if no adequate research is undertaken before the property is sold. Research attempts to uncover the background of a property and to detect anything that might cause problems to buyers and sellers in the future. Common property researches that are conducted by solicitors include ownership research, mining research, and water and drainage research.

conveyance taxes

The conveyance taxes buyers and seller pay

The state views conveyance as a form of business.  Business involves the exchange of goods and services with an aim to make a profit. Both buyers and sellers benefit in one way or another at the close of a business transaction. The advantage that buyers and sellers get is subject to taxation just like the income tax. The way to determine conveyance taxes is slightly different from how income taxes for salaried people are calculated. It is important for beneficiaries of conveyance to know how they will be taxed so that they can anticipate the expenses they will accrue upon the completion of conveyance.

Taxation is not a form of punishment. Taxes are the major sources of revenues to the government.  State systems would collapse if there were not taxes. Taxes help keep a country together. The government knows the burden that taxes can bestow upon its citizens. Taxation is designed in such a way that people can pay without losing too much money. Every business or source of income is taxed just well enough to keep those involved financially afloat.  That is, each business is taxed in a way that is different from another with consideration given to levels of income of the taxpayer. Conveyance taxes are technically different from income taxes or taxes that are imposed on other businesses.

There are two major taxation systems in the conveyance. The first one is stamp duty tax system and the second is the capital gains tax. Stamp duty land taxes are imposed on buyers of properties. Capital gains tax is for sellers of properties who meet certain criteria. These two taxation systems are different in their methods of execution. A buyer may be eligible for stamp duty tax even if his seller is not.

Stamp duty land tax is paid to the HMRC upon completion of conveyance. The real estate buyers pay it within thirty days of completion of conveyance.  A buyer is assumed to have gained an asset when he purchases a property.  It is the increase in an asset that is taxed. A buyer’s solicitor usually processes this tax. The solicitor may pay the fee with his own money in which case he will have to be refunded by the purchaser.  A buyer can file a tax return and pay the tax himself if the solicitor fails to process the tax during his tenure.

The method of calculating stamp duty taxes is similar to that of income tax. This tax is grouped into bands. The number of bands in a taxation system depends on whether the property that has been sold is residential, commercial or an additional property to a buyer who already has another property.        First-time residential houses that are less than £125,000 are not taxed. Properties worth more than £125,000 are taxed at rates ranging from 2% to 12%. Taxation for commercial properties begins with properties of at least £150,001. Additional properties are taxed from property prices greater £40,000.