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Buying a home involves a complicated legal process known as conveyancing to transfer ownership of the property from the seller to the buyer. Most people hire a solicitor. Legal issues relating to the property and the local area need to be carefully checked. The process also involves deciding what is included in the sale before preparing the contracts.

Do I need a solicitor?

Most people who are buying or selling property hire a legal adviser to handle the legal work. This is usually a solicitor, but you can use someone who is registered with the Council for Licensed Conveyancers instead. It's possible to do the legal work yourself, but this can be complicated and risky. There are self-help books available but if you don't have legal experience, it's usually better to hire a legal adviser to act as a go-between.

Many lenders or estate agents can provide a list of solicitors for you to choose from. You can get details of other solicitors from the Law Society or the Council for Licensed Conveyancers. Solicitors' fees vary, so it's worth getting a few estimates and checking that fees include VAT and expenses (disbursements).

You should also check whether your mortgage lender is happy to use the same solicitor/conveyancer to prepare the legal contract for your mortgage (the mortgage deed). This can help to keep your legal costs as low as possible.

Checking the documentation

The first thing your solicitor will do is to get a copy of the Land Registry entry (or the title deeds if the property isn't registered) from the seller's solicitor. These are the legal documents giving evidence of ownership. They are written in legal jargon and need to be carefully examined to make sure there are no unreasonable conditions about how you use the property.

If you are buying a leasehold property (which includes most flats), your solicitor also needs to check the lease carefully. This will include checking:

• who has to arrange (and pay for) insuring the building
• how much ground rent you will have to pay after the sale
• how service charges (for repairs and maintenance) are calculated
• whether service charges and ground rent can be increased, and if so, how
• whether you will have to contribute to any expensive repairs that have already been carried out (such as replacing windows or repairing a lift)
• whether the freeholder is responsible for maintaining the structure and shared areas of the building.

If there is a major problem with the lease, it should be sorted out before contracts are exchanged. This might mean that the seller has to sort out a dispute with other leaseholders and/or the freeholder about who is responsible for repairs. This might delay the sale, but is usually much easier than dealing with the problems after you move in. Your solicitor can explain anything you don't understand.

Land registry checks

Your solicitor (or conveyancer) will check the seller has the right to sell the property with the Land Registry to avoid any problems later on. When the sale goes ahead, s/he will register your ownership of the property and your mortgage agreement (the mortgage deed) with the Land Registry. You have to pay fees for this, which vary depending on the price of the property and whether the property is already registered.

Information from the seller

Your solicitor will also ask the seller to provide certain information. This normally includes standard questions about whether there have been any problems with neighbours, such as noise or disagreements about parking.

If the property includes land (such as a garden), your solicitor will also check that there is no disagreement about where the property boundaries are, and who is responsible for maintaining them. If this isn't clear, your solicitor should ask the seller to sort it out before you exchange contracts.

You also need to agree with the seller what fixtures and fittings (such as light fittings, carpets or furniture) should be included in the sale. These items could be:

• taken away by the seller
• included in the sale price
• offered for sale separately.

The seller should provide a detailed list of what is included in the price. This will become part of the contract. You should check the list and assume that anything not included will be taken away. If the seller later takes away things that were included in the price, you can ask for them to be returned or claim compensation.

Local authority searches

Details about the history of the property and the surrounding area need to be checked with the local council. This includes checking:

• that any alterations to the property had proper planning permission
• that there are no developments in the surrounding area that could affect the value of the property (such as a road widening scheme)
• whether areas such as the street, pavement and drains are public and maintained by the council
• whether there are any other expenses linked to the property, such as a right to buy discount that must be repaid.

Stamp Duty Land Tax

Stamp Duty Land Tax (SDLT) is a Government tax that you have to pay if you spend more than a certain amount on a property purchase.

The rates are a percentage of the total property price. On 25 March 25 2010, new rules were introduced to help first-time buyers, who will not have to pay any stamp duty for properties up to £250,000, until 25 March 2012.

Homes sold for £175,000 or less were exempt from 3 September 2008 until 31 December 2009. To be exempt from paying stamp duty you will normally need to have completed the purchase by that date, not just exchanged contracts.

You should only pay stamp duty on the price of the property itself. You don't have to pay it on fixtures and fittings such as curtains or appliances. If you arrange to pay for these items separately, you may be able to pay less stamp duty (or none at all if it brings the price of the property down  below the bottom limit).

If you are buying under the right to buy, stamp duty is based on the price you pay (the discounted price - not the market value).

Preparing the contract

Once all the necessary details have been checked, the contract between the buyer and the seller will be negotiated. This stage can often involve considerable delays, as the seller may not agree to everything you want. For example, you may want to pay less than the price you originally offered, or get the seller to carry out repairs. All the conditions of the sale need to be agreed before contracts are exchanged. Solicitors normally do most of the negotiating on your behalf, but they will need to be in regular contact with you to discuss any changes.

Preventing 'gazumping'

During the negotiations, the seller could accept a better offer from another buyer before you have exchanged contracts - this is called gazumping. To avoid this happening, you may be able to persuade the seller to sign an agreement that the sale can't be called off as long as contracts are exchanged within a certain amount of time. There will probably be extra legal fees and/or a deposit involved. Ask your solicitor if you want to arrange this sort of agreement.

How much does it cost?

Solicitors and conveyancers charge fees for their work, which are sometimes worked out as a percentage of the value of the property. The amount you have to pay will also vary depending on how much work is involved. You will also have to pay for any expenses (or 'disbursements') that are part of the sale, which may include:

• local authority search fees
• Land Registry fees
• stamp duty.
  

Most of these have to be paid when the sale is agreed, but your solicitor may ask for payment in advance. Local authority search fees are not refundable, even if the sale falls through for any reason. Any outstanding disbursements and fees are normally paid on the day you collect the keys to your new home (completion date).

You will also have to pay legal fees and expenses for the legal work involved in setting up your mortgage. If your lender has agreed to use the solicitor who is doing your conveyancing to do this, the costs involved will normally be included in your solicitor's fees. If your lender uses a different solicitor, you will get a separate bill.

Making a complaint

If you get poor service from your solicitor or conveyancer, you can make a formal complaint. If s/he doesn't deal with your complaint properly (or at all) get advice from a different solicitor. If you have lost out financially because of your solicitor or conveyancer, you can take it further. You may be able to get compensation, but will need help from a new solicitor.

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