Examples of property transfers
From time to time solicitors get involved when properties need to be transferred but no open market sale is involved.
Examples of property transfers:
Parent transfers title of family home to an adult child by way of gift.
Joint owners of an investment property purchased with a mortgage transfer the property to one of them or transfer the share of the outgoing investor to a new investor. The transfer may be made subject to the existing mortgage or involve a re-mortgage ie taking out a new mortgage in the names of the new owners and using this to repay the existing mortgage. This is sometimes called a transfer of equity - the equitable interests change but so to does the legal title.
Matrimonial breakdown the parties may agree or the court may order that the matrimonial home is transferred to one or other of the parties on terms eg that the non resident party may not require the sale of the property to realise his or her share in to until such time as the youngest child of the family finishes full time education. Such terms may involve imposing a charge on the property or drawing up a declaration of trust setting out the terms.
Relationship breakdown - if a cohabiting couple have bought a property together and the relationship breaks down then rather than force a sale one party may agree to sell their share to a third party, typically the new partner of the remaining joint owner. As well as the new joint owner assuming the mortgage obligations of the former, depending on the amount of equity, they may make a capital payment to the outgoing party too.
Transfer of property on death - where the deceased left real property to a beneficiary the executors will need to execute a legal document called an Assent to vest the legal title to the property in the beneficiary, and this will need to be registered at land registry.
Death of joint legal owner - depending on the way in which the property is held - whether as joint tenants or in shares as tenants in common - it may be necessary to take steps to regularise the legal title on the death of a joint owner. Legal title to the property may pass by survivorship to the survivor on the death of a joint owner , but it may be necessary to remove a restriction or to appoint another joint owner to enable the property to be transferred, sold, let or mortgaged.
Transfer of equity by way of a declaration of trust - in some circumstances it may be more cost effective to leave the legal title unchanged but effect a transfer in the ownership of the equity by means of a declaration of trust. Our solicitors can advise you.
Benefits of instructing Julie West Solicitors
Quite simply, we specialise in conveyancing (which means the transfer of title to land) and know what we are doing!
We work from modern offices on a business park on the outskirts of Leatherhead with free adjacent parking, so you can easily come and see us to talk through what it is you wish to achieve.
How it works
Process
You tell our solicitors what needs to happen and we draw up the documents.
Depending on the nature of the property transfer we may need to liaise with other parties or their solicitors, or with your lender.
Acting for more than one party
We are sometimes asked whether we can act for more than one party. This will be a question to be decided on the facts of each case, but in general it is simplest if each party is separately represented, because of the potential for a conflict of interest. A conflict of interest arises where a solicitor cannot discharge his duty to act in the best interests of one party because it conflicts with what is in the best interests of another party. we must always put our clients’ best interests first.
If you do wish us to act for more than one party, for example in a family situation where property is being transferred by way of gift between family members, then we will ask you to provide “informed written consent”. We will explain why we think there is potential for conflict of interest and we will ask you to acknowledge that a better outcome may be achieved if we were acting solely for you.
Sometimes people wish to engage one solicitor because it will be simpler, quicker, and cheaper. If we agree that it is reasonable for us to act in these circumstances, and all parties provide informed written consent, then we may do so. However, if a conflict does arise, or if irreconcilable differences arise during the course of our work, then we would need to withdraw from acting altogether. Each party would then be advised to obtain independent legal advice elsewhere, because the duty of confidentiality owed to each client would preclude us from continuing to act.
Timescale
Our solicitors will advise you on the likely timescale for completing your transaction. Even where the parties have agreed terms the involvement of a third party such as a lender, or in the case of marriage breakdown the need to obtain a court order, may cause a property transfer to become protracted.
If there is a need to complete a transaction quickly, for example if one of the parties is emigrating, or is in failing health, then please tell us and we will help in whatever way we can to expedite matters.
Cost
At the outset our solicitors will provide you with a detailed estimate of all the costs you are likely to incur. We review our estimates regularly as our work progresses, and if our estimate is likely to be exceeded we will tell you, so that you can decide what to do.
In the case of a transfer of equity the parties will need to agree on how any costs are to be paid. This may have been the subject of prior agreement between the parties, in which case this will be explicit in any declaration of trust. Sometimes a party seeking the change, or that will most benefit, or that is making the gift, may agree to pick up all the legal costs, or else the parties may each agree to pay their own legal costs. Every transaction is different.
One thing is clear: failing to agree who will pay the legal costs can be a real stumbling block to progress, and so the question is best addressed at an early stage.
Fee list
Law Society Conveyancing Quality Scheme (CQS)
Our specialist solicitors are accredited under CQS. The Law Society launched the CQS scheme to help consumers make an informed decision about who to instruct to assist them with residential property work.
The primary aim of the scheme is to help the public avoid advisers that are unregulated, uninsured and untrained. The scheme is also used as a badge of trust, relied upon by lenders as well as other accredited firms.
Achieving the CQS accreditation shows that we follow best practice procedures to meet the highest standards of technical expertise and service helping clients with property work.