Buying or selling a property is one of the most significant transactions a person will make in their lifetime. It is essential to have an experienced and knowledgeable solicitor to help navigate the legal process of a residential conveyance. One of the primary obligations of a solicitor in a residential conveyance is to protect the lender’s interests.
In a typical residential conveyance, a buyer will need to obtain a mortgage from a lender to finance the purchase. The lender will require a solicitor to act on their behalf to ensure that their investment in the property is secure. This means that the solicitor has an obligation to carry out a thorough investigation into the property’s legal title and ensure that there are no issues that could affect the lender’s security.
The solicitor will carry out a series of checks on the property’s title, including investigating any legal charges, restrictive covenants, and planning restrictions. They will also check that the property’s boundaries are accurate and that there are no rights of way or other easements that could impact the lender’s security. The solicitor will also ensure that the seller has the right to sell the property and that there are no disputes or legal issues that could prevent the sale from proceeding.
Once the solicitor has carried out these checks, they will report to the lender, outlining any issues that have been identified and what steps have been taken to resolve them. The lender will then use this information to decide whether to proceed with the mortgage and, if so, what conditions they will impose. If there are any significant issues with the property’s legal title, the lender may require the seller to resolve them before the sale can proceed.
It is essential to remember that the solicitor’s primary duty is to the lender and not to the buyer. While the buyer may pay for the solicitor’s services, the solicitor’s obligation is to protect the lender’s interests. This means that if any issues are identified that could impact the lender’s security, the solicitor will need to inform the lender, even if it means delaying or potentially preventing the sale.
In conclusion, a solicitor’s obligation to a lender in a residential conveyance is crucial in protecting the lender’s investment in the property. The solicitor’s duty to the lender requires a thorough investigation of the property’s legal title and identification of any issues that could impact the lender’s security. While the solicitor’s services may be paid for by the buyer, it is essential to remember that their primary obligation is to the lender, and any issues identified must be reported to the lender, even if it means delaying or preventing the sale.
Please call us to discuss this or any other property issues. Our conveyancing department would be happy to speak to you during working hours on 0161 850 9911 or at propertyteam@khanmather.co.uk