The UK holds the title of being the slowest country for selling residential property, according to research by Home Sale Pack, but new technology offers many advantages to speeding up the conveyancing process
An analysis of how long it takes to move from offer to completion in 10 of the world’s busiest housing markets revealed that the UK was the slowest, with an average conveyancing timeline of 183 days (six months). In contrast, the average time in the US is 69 days, 90 days in Canada, and 105 days in France.
The conveyancing industry is working hard to speed up the process. New technology offers many advantages to conveyancers, including the ability to complete manual tasks in a fraction of the usual time, greater accuracy, the elimination of repeated requests for the same information, improved transparency, and a compliant audit trail. Technology can automate routine tasks, providing a higher level of accuracy.
For example, over recent years, we have seen the automation of several conveyancing processes. It is now easy to complete a digital AML check, and the stamp duty (SDLT) process has been fully automated. These online services offer a faster alternative to traditional methods, reducing errors and providing a complete audit trail. This allows conveyancers more time to focus on the complex and specialist areas of the conveyancing process.
However, despite new technology, avoidable delays are a constant, causing frustration for all the parties concerned. I have outlined the top five issues that we regularly face:
Unnecessary enquiries and documentation delays
Developers often feel that conveyancers raise unnecessary enquiries and request additional documentation, causing delays. However, it is crucial for conveyancers to thoroughly review new build plans and documents to ensure that the client’s understanding of the purchase matches the reality. This includes verifying that developer incentives are clearly outlined and included in the contract.
Site issues delaying transactions
Conveyancers frequently encounter problems with roads, access, utilities, planning regulations, sewers, and parking spaces. If these issues are not addressed early, they can cause significant delays. Developers may pressure conveyancers to proceed before these matters are resolved, leading to client frustration.
Pre-packing a complete site before clients submit reservations is highly advisable. This proactive approach ensures that 75% of the conveyancing is completed beforehand, leaving only plot-specific or client-requested enquiries to be raised later.
Communication challenges in new builds
Communication remains a major challenge in new build transactions. Multiple stakeholders must be kept informed, and the pressure to exchange contracts within 28 days—due to developers needing exchanges to secure financing for the next build phase—adds to the urgency. New build transactions often involve four times more work than standard residential purchases but must be completed in a significantly shorter timeframe.
To improve transparency and streamline communication, it is advisable that conveyancers use a model file that outlines each stage of the conveyancing process, and the time required for each task. This ensures that all stakeholders, including developers, clients, financial advisors, mortgage lenders, estate agents (if relevant), and conveyancers, have a clear understanding of the transaction’s progress, reducing confusion and avoiding unnecessary delays.
Lack of teamwork
Transactions often stall when clients receive conflicting information from the developer’s sales team and their conveyancer. This miscommunication can confuse clients and slow progress.
It is important that conveyancers build relationships and demonstrate that all parties are working together. By collaborating closely with the developer’s sales team, conveyancers can encourage them to assist in following up on documents and chasing clients, ensuring everyone is aligned and moving toward the same goal.
Source of funds delays
Verifying the source of funds can slow or even halt a transaction. Conveyancers are heavily regulated and must follow strict protocols to confirm the source of funds and proof of wealth. Failure to do so can have severe legal consequences for law firms.
Developers should ask clients how they plan to finance the purchase and inform them that funds cannot come from accounts where cash deposits have been made. If clients are using a gifted deposit, the giftor should is aware that they will need to provide identification and undergo source of funds and wealth checks. This upfront guidance reduces delays and keeps transactions moving efficiently.
It is also important to inform clients that funds from high-risk third countries, as specified by HM Treasury in Schedule 3ZA of the MLRs, may not be accepted. These countries include Barbados, Bulgaria, Burkina Faso, Cameroon, Croatia, DPRK, Democratic Republic of the Congo, Gibraltar, Haiti, Iran, Jamaica, Mali, Mozambique, Myanmar, Nigeria, the Philippines, Senegal, South Africa, South Sudan, Syria, Tanzania, Turkey, Uganda, the United Arab Emirates, Vietnam, and Yemen.
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