Real Estate Law Title

In the midst of the credit crunch the old adage is truer than ever - cash is king.

Without a healthy cash flow, your business could stall and ultimately splutter to a standstill.

Every sale feels like a milestone in today’s tough market place, but after the buzz has worn off, it is more important than ever to make sure you qualify the purchaser. Ensuring that mortgage finance and an appropriate deposit is available is proving critical with mortgage lenders having tightened their loan to value lending criteria considerably over the last six to twelve months. 
 
It is also vital that the purchaser and the vendor have the correct legal representation. A good conveyancer should ensure searches and title checks are completed quickly, and this can make the difference between achieving a sale and it falling through.
 
Given the falling number of transactions it is imperative to look after every element of the legal process, starting with the choice of conveyancer. In this market place there are no excuses for poor service. RICS figures show that some 1.2 million transactions were registered at the Land Registry throughout 2007, which dropped to 600,000 in 2008. The vast majority of conveyancers, like estate agents, have been affected by the down turn, so should be working even harder to provide a great service and assure repeat business.
 
Communication throughout the sale process is of paramount importance. Large conveyancing practices are leading the way with online case tracking systems, which allow estate agents and their clients to case track the progress of transactions. This shift to e-conveyancing will gain pace over the course of the next few years, and can speed up the process significantly.
 
However this is not a substitute for the reassurance associated with a quick telephone call. Telephone contact with the client is needed at key stages throughout the transaction to keep the process moving. Conveyancers and estate agents need to ensure that clients have a point of human contact, preferably the same person, every time they telephone and that calls are always returned promptly.
 
Timing is critical to transaction success in today’s market place. Any transaction moving into a 90 day period between the date the sale was agreed and exchange of contracts is likely not to complete. The consistent devaluation of property on a month by month basis, together with the tightening of mortgage finance means that property deals that are not concluded quickly are in jeopardy of not concluding at all. Conveyancers were recording attrition rates of up to 45% throughout 2008/9, in comparison to 25% in 2007. Conveyancers should aim to exchange within eight weeks of instruction at the latest.
 
Don’t forget that the commission to be earned from peripheral products such as legal referrals are important. Estate agents can earn anything from £100 to £400 per transaction from conveyancing referrals, and such payments can seriously improve your cash flow.
 
Completing sales quickly will mean your commission and fees are where they should be - in your pocket. Fast-paced conveyancing can be a real boost in a market where sales are scarce, and simple steps like keeping an eye on the speed of the process and keeping the lines of communication open at all times will help you achieve them.