Lawyer-review draft only — not legal advice Governing jurisdictions: England and Wales; mainland PRC only for the funds-compliance section Review status: Both assigned scopes finally approved without changes Confirmed reviewer assignments: Edward Clarke — England and Wales conveyancing and UK tax scope; Shangjin Hou — mainland PRC foreign-exchange/remittance scope Attribution status: Edward Clarke and Shangjin Hou may be credited within their respective scopes Last legally reviewed: 2026-08-05
Buying a home is not only a price negotiation. The legal review must establish what is being bought, who will own it, what affects the title, whether the building and intended use are acceptable, how the money can lawfully reach the transaction, and which tax and disclosure regimes apply.
This guide covers the land system of England and Wales. Scotland and Northern Ireland are outside scope. Tax also turns on location: SDLT applies in England, while Welsh transactions are subject to a separate land transaction tax regime.
1. Decide the buyer before committing
Record whether the buyer will be an individual, joint buyers, a UK company, a trust or a non-UK entity. The choice can change financing, beneficial ownership, tax, succession, privacy, annual compliance and exit. It should not be made solely because an agent describes one structure as “tax efficient”.
If a non-UK legal entity will acquire the property, check the Register of Overseas Entities before exchange. An in-scope entity may need verified beneficial-owner information, an Overseas Entity ID and annual updates, and land registration can be restricted if requirements are not met.
Questions for professional advice: Is the proposed vehicle legally suitable, who is the beneficial owner, and what UK and PRC tax, corporate and succession consequences follow?
2. Read the register, plan and underlying documents together
For registered land, obtain the title register and title plan. The register can identify the registered owner, freehold or leasehold tenure, mortgages, restrictions, rights, restrictive covenants and easements. Entries may refer to separate deeds that must also be obtained. A title plan usually shows general rather than exact boundaries.
For leasehold property, review the lease itself. The remaining term, ground rent, service charges, repair obligations, insurance, use and letting restrictions, alteration consents, forfeiture provisions and management arrangements can materially affect cost and use. Management packs, accounts, planned major works and building-safety information may be essential.
3. Title is only one due-diligence stream
A clean-looking register does not establish the physical condition of a house or flat. The conveyancer should select appropriate searches and enquiries; a suitably qualified surveyor should advise on the building and the appropriate survey. Planning permissions, building-regulations records, roads, drainage, environmental matters, flood risk and location-specific issues may require separate evidence.
Questions for professional advice: Which searches, enquiries, survey and specialist reports are proportionate for this property, lender and intended use?
4. Fix the tax facts before calculating
The tax reviewer needs the property location, price, residential or mixed use, identity and residence of every buyer, interests in other dwellings worldwide, intended occupation, connected persons and any company or trust. For an English residential purchase, the special SDLT non-resident test is transaction-specific and must not be replaced with the general Statutory Residence Test. A Welsh purchase requires separate LTT advice.
Potential ongoing and exit issues—including rental income, company-related charges, capital gains and inheritance tax—also require advice. No rate or relief should be copied into the final article without a dated check.
5. Prove the money and the people behind it
Solicitors and other regulated professionals must conduct customer due diligence. Expect requests for identity, address, beneficial ownership, the immediate source of the purchase funds and, where risk requires, the origin of the buyer’s overall wealth. A bank statement showing the final balance may not explain gifts, company distributions, loans, property-sale proceeds or transfers through relatives.
Prepare an unbroken documentary chain: contracts, tax records, corporate resolutions, audited or bank records, gift and loan documents, translations and transfer receipts. The professional must decide whether the evidence is sufficient and whether enhanced checks or reporting duties arise.
6. Confirm the mainland PRC remittance route before exchange
UK acceptance of funds does not establish PRC foreign-exchange compliance. The buyer should obtain transaction-specific advice and written confirmation from the remitting institution on the lawful purpose and route. The draft does not assume that an individual annual foreign-exchange allowance is a general channel for buying an overseas home. The purpose must be stated truthfully, and arrangements using false descriptions, splitting or borrowed identities must not be proposed.
Questions for professional advice: What documented PRC route lawfully funds this purchase, and what evidence will the UK conveyancer and receiving bank accept?
7. Control exchange, completion and registration
Do not exchange until the legal, survey, finance, tax, AML and PRC-funds issues are cleared and the client understands the contract. Exchange, completion and registration are separate stages; the exact deposit, conditions, dates, priority searches and post-completion filings are transaction-specific. The acquisition must then be registered where required.
Questions for professional advice: Confirm the binding point, deposit risk, completion mechanics, lender conditions and registration timetable for this contract.
The final advice file should contain the ownership decision, title report, searches, survey, lease and management review where relevant, tax calculation, AML evidence chain, PRC remittance confirmation, signed contract, completion statement and registration evidence. No part of this checklist guarantees value, condition, visa status or investment performance.
Selected official sources
- HM Land Registry property information
- How to read a title register and title plan
- Companies House: Register an overseas entity
- HMRC: Stamp Duty Land Tax
- Money Laundering Regulations 2017
- PRC SAFE foreign-exchange knowledge base
General information only, not legal advice. Law and administrative practice can change. Obtain advice for the relevant facts and jurisdiction.
