An equity transfer is a legal process that occurs when an existing owner of a property either adds or removes one or more people to or from the title (ownership) of a property.
When is this likely?
This is most likely to occur when a property owner marries or separates from a partner; for example, if one person buys a property on their own, they may wish to add their new spouse to the title deeds on marriage. If a property owner separates, they may wish to remove their ex-partner from the title deeds. This is commonly referred to as buying them out.
A property owner will sometimes gift their property to their children while they are still alive, which is often done for tax reasons.
Do you need a conveyancer?
Strictly speaking, you do not need a conveyancer if you are being bought out of a property; however, the person who is buying you out will need one. In the case of a parent gifting their child the property, they only need one conveyancer to act for both parties; however, as conflicts of interest can occur when transferring equity, it is advisable for all parties involved to seek independent legal advice from a specialist such as https://www.samconveyancing.co.uk/news/conveyancing/transfer-of-equity-process-3894.
The conveyancer can make sure their client gets a fair deal. They can also ensure that all the paperwork is submitted correctly and that nothing is missed that could cause problems later.
What does a conveyancer do?
A conveyancer has many tasks to carry out to ensure the process is carried out correctly. These include:
– Reviewing the title deeds from HM Land Registry and reporting any abnormalities or issues that need to be taken care of before the transfer goes ahead.
– Preparing the transfer deed document to ensure everything is correct and in accordance with the wishes of all parties.
– Obtaining signatures from all parties involved in the presence of a witness.
– Notifying mortgage lenders, who will often have their own conveyancer to ensure they are happy for the transfer to go ahead.
– Registering the deed of transfer with HM Land Registry and paying the appropriate fee.
Once this has all been completed and the conveyancer has the agreement of all parties involved, the transfer can go ahead.
This is a legal process and it is important that no mistakes are made; therefore, it is always a good idea to choose a conveyancer to complete the paperwork rather than trying to do it yourself. Conveyancers have lots of experience in legal processes and will ensure that everything runs smoothly for you.
