Introduction to the legal process of real estate purchasing in London

How the Legal Side of Buying Property Works—and Why It’s Essential

After financing and taxation, it's time to focus on what makes a property transaction official: the legal process. Whether you're a first-time buyer or helping clients close deals, this phase ensures that everything is secure, transparent, and properly documented.

Once the buyer finds a property they like and makes an offer, and if the seller accepts the offer, the next crucial step is for the buyer to appoint a solicitor to handle the legal processes of the purchase.

In the UK, it is a legal requirement for both the buyer and the seller (developer) to have their respective solicitors when appointing in a property purchase. This ensures that each party's interests are protected throughout the transaction.

When engaging a solicitor to handle the legal aspects of a property transaction in London, the buyer can rest assured that they will diligently carry out various essential checks and searches on both the buyer and seller. These thorough examinations are vital to ensure a smooth and legally sound transaction, safeguarding the interests of all parties involved.

By entrusting a solicitor with these crucial tasks, both the buyer and seller can navigate the complexities of the property transaction with confidence, knowing that their interests are diligently protected, and all necessary legal aspects are expertly handled.

The following are some of the key checks & searches they typically perform.

What the Buyer’s Solicitor Does

The solicitor working for the buyer carries out several critical checks, designed to prevent future disputes or financial risks. These include:

Buyer Verification Checklist

1. Anti-Money Laundering (AML): Verify the buyer’s identity and confirm their current address to ensure compliance with AML regulations.

2. Mortgage Affordability: Assess the buyer’s financial capacity if they're applying for a mortgage to confirm they can support repayment.

3. Mortgage Offer Review: Review the terms and conditions of the buyer’s mortgage offer for transparency and suitability.

4. Property Survey: Examine the property survey report for any structural issues, defects, or areas of concern.

5. Local Authority Searches: Investigate planning permissions, legal restrictions, or any issues flagged by local authorities that may affect the property.

6. Environmental Searches: Check for risks such as contamination, flood zones, or other environmental factors that could impact the property’s value or safety.

7. Chancel Repair Liability: Determine whether the buyer could be liable for contributing to church repairs, which may not be immediately obvious.

8. Land Registry Check: Confirm the ownership details and ensure that the property has a clear title with no disputes or encumbrances.

9. Leasehold Information (if applicable): Have a solicitor review the lease terms to ensure they are fair and align with the buyer’s expectations.

These steps ensure that buyers get what they expect—with no hidden surprises after completion.

Solicitor's role

The seller or developer also goes through legal checks. Their solicitor helps verify:

Checks on the Seller

1. Title Deed Review: Confirm the seller's legal ownership of the property and identify any restrictions or encumbrances affecting the title.

2. Management Information Pack (Leasehold properties): Obtain key documentation from the managing agent or freeholder that includes service charge details, ground rent information, and lease terms.

3. Property Information Forms: Collect completed forms from the seller disclosing relevant property details, known defects, alterations, and any existing disputes.

4. These documents help the buyer’s solicitor understand the full condition and context of the property being sold.

Handling Money & Contracts

Solicitors also manage the transfer of funds. Here’s how it works:

• On Exchange Day, both sides sign contracts and the buyer’s solicitor transfers a deposit—typically between 5–10% of the property price.

• Once the money is received, the agreement becomes legally binding.

• On Completion Day, the rest of the purchase amount is transferred. The buyer’s solicitor sends funds from the mortgage or buyer’s account to the seller’s solicitor.

• Once that clears, the keys are released, and ownership officially changes hands.

This legal framework protects buyers, sellers, lenders, and agents alike.

Why Legal Checks Matter

Legal procedures ensure that:

• Buyers won’t face unexpected costs or structural problems

• Sellers aren’t exposed to false claims

• Contracts are airtight and enforceable

• Payments and titles are safely transferred

• The property is accurately registered with the UK’s Land Registry

Without solicitors, the transaction can’t be finalized—and neither party would have protection against risk.

Final Thoughts

Whether you're representing a buyer, working with developers, or purchasing property yourself, understanding the legal framework is essential. These processes might feel slow or technical, but they’re there for a reason: to make sure everyone involved is protected and the deal is secure.

In our next chapter, we’ll explore the exciting world of London’s new-build developers—who they are, what they offer, and how their projects are shaping the future of UK real estate.