The conveyancing process can be a long and drawn-out experience, especially when all parties involved haven’t engaged a professional and knowledgeable legal team. Here are just some of the reasons why obtaining independent advice can be valuable during the conveyancing process.
Why might I need independent legal advice?
Did you know that there are numerous situations that may call for you to seek independent advice? In fact, for certain transactions, including equity release and equity transfer, obtaining this type of advice is a mandatory requirement to ensure the process can continue to completion.
Obtaining legal advice from an independent solicitor is a non-negotiable requirement during transitions that involve risk for a party who won’t receive any direct benefits from the purchase. For example, your lender will make this request if you are planning on purchasing property via a private limited company or if you want to obtain a mortgage agreement without also registering your name on the title deeds of the property.
Ultimately, this type of legal advice is designed to ensure that all parties fully understand the risks associated with the transaction they are involved in.
What exactly is independent advice?
Independent advice can typically only be sought from a solicitor who has not previously been involved with this particular property transaction. Your solicitor is not there to make any decisions on your behalf, however, they will provide you with information regarding the potential risks that are associated with the transaction.
Advice is generally sought as the transaction process is coming to a close and while historically, the appointment was conducted in-person, independent advice is now typically provided via video call.
During the appointment, the independent solicitor will cover everything from the purpose of all documentation and financial risks that could arise in the future to the possibility that terms may be altered and whether there is room to negotiate with other parties to secure a more advantageous deal.
Who can provide independent advice?
Although the requirements can vary, independent advice is typically provided by a practising solicitor, an Institute of Legal Executives Fellow, or a fully licensed conveyancer. It is important to engage the services of an experienced professional, such as those to be found within the Sam Conveyancing team.
As this important formality often occurs at the end of the application process, it is one of the most common causes of frustrating delays. However, despite this, it is important to ensure that you don’t cut any corners here because the quality of the advice you receive can have a lasting impact on your personal financial circumstances.
Are there different types of independent advice?
Yes. The advice you receive will be specifically tailored to your situation to ensure that you understand all the risks and implications that may arise from proceeding with the transaction. Some of the different types of advice available include:
– Director’s guarantees
– Joint borrower, sole proprietor agreements
– Equity transfer and equity release
– Bridging loans
– Occupier consent to a mortgage
What does the process involve?
As soon as your independent solicitor receives all relevant documentation, they will schedule an appointment for a video call or in-person meeting. There will be a requirement to sign documentation before your transaction can continue.