Conveyancing is the area of property law that deals with the transfer of real estate between sellers (vendors) and buyers (purchasers).
Although it seems quite straightforward, property law can be quite complex and conveyancing has to consider issues such as contract terms and conditions, mortgages, covenants, easements, caveats, the type of property title, the type of tenancy, local council regulations and zoning to name just a few.
What are the steps in the conveyancing process?
- The process begins with the vendor instructing its lawyers to prepare a Contract of Sale and Vendor’s Statement (section 32 statement). The Contract of Sale forms the basis of the agreed terms and conditions between the vendor and purchaser.
- The purchaser should seek legal advice, review the contract, inspect the property and start making loan arrangements before anything is signed.
- The Contract of Sale is signed by both parties, and may be immediately binding, depending on the circumstances of the sale. You may however, have a cooling off period available, or be able to withdraw from the contract under certain conditions, so it’s important that you know the exact terms and conditions written into the contract before signing.
- A set length of time is specified in the Contract of Sale between signing of the Contract of Sale and the settlement date where the purchaser becomes the legal owner of the property. During this time, the purchaser has a lot to do including conducting various checks on the property, calculating stamp duty, organising insurance and getting any loan arrangements in order. At the same time, the vendor should be making arrangements with their bank to have any mortgage discharged as well as making plans to move.
- Before settlement, adjustments to the purchase price are agreed upon between the parties to cover council and water rates as well as other costs which may be allowed for in the Contract of Sale.
- On the day of settlement everything must be in place. The purchaser or the incoming mortgagee must show up with the funds, and the seller or outgoing mortgagee must turn up with the property title and the document/s needed to release the mortgage. Everything is handed over including the keys and the property is considered settled and ownership is transferred to the purchaser.
- After settlement, the purchaser needs to be registered as the owner on the title, and various government bodies need to be informed of the change in ownership.
As buying property is one of the biggest financial decisions you will make it’s important that you get expert legal advice. If you want to protect your legal rights, you need an experienced property lawyer helping you.
With years of property law experience our legal team can guide you through the complex conveyancing process. We are dedicated to protecting your legal rights in uncomplicated, plain English.
Our conveyancing services are fixed-fee based, so there are no hidden extras for you to worry about. You pay once everything is complete.
Contact us to find out more or to arrange a consultation with our principal Victoria Tetis.