How Conveyancing Works
After countless inspections, you finally find your dream home. It’s close to your children’s school, comes with a dreamy backyard, and is well within your budget.
Now comes the paperwork and it is time for you to find a good conveyancer.
The settlement process is a complex task including various financial and administrative duties, so, you will need the right conveyancer to help you navigate the potential pitfalls.
It is not legally required, but for a reasonable fee you can have someone act on your behalf, leaving you more time to focus on moving.
What is conveyancing?
Conveyancing is the process of transferring ownership of a legal title of land to the new owner, whether it be a from a person or entity.
Given the complexity of the legal work, it’s recommended that you hire a professional to conduct your conveyancing. Picture: Getty
As you can imagine passing a property to a new owner means a lot of work and a conveyancing transaction generally consists of three stages:
Typically, a conveyancer will do everything necessary and ensure you are prepared for critical dates during the process.
They are also in regular contact with the other party’s lawyers dealing with the nitty gritty issues.
Of course, you can fill out all the forms yourself and save a few hundred of dollars on fees.
But this is not recommended, as ensuring all the i’s are dotted and t’s crossed is no easy task.
Also, if something goes wrong, you run the risk of losing the property and forfeiting your 10 per cent deposit. While, if you enlist the expertise of a conveyancer, should they make a mistake, you’ll be covered by their professional indemnity insurance.
Hiring a conveyancer means you’ll be covered by their insurance should something go wrong. Picture: Getty
What is a conveyancer?
A conveyancer is a licensed professional who specialises in providing advice and information about the sale of a property.
Conveyancers don’t necessarily have to be solicitors but they often undertake this work.
buying or selling a property
updating a title (i.e. registering a death)
registering, changing or removing an easement
What does a conveyancer do?
As we pointed out above a conveyancer oversees the settlement process.
On the surface it appears easy, but in reality most home buyers and sellers do not realise the full amount of detail, documentation and work that goes into legally transferring a property to a new owner.
Read more: conveyancing behind the scenes
For someone who does not know how to navigate the process it could take weeks to find and lodge legal documents, let alone understand them.
And that is just a small part of conveyancing, so, let us look at what a specialist does for each party.
For the buyer, a conveyancer will:
Prepare, clarify and lodge legal documents – e.g. contract of sale and memorandum of transfer
Research the property and its certificate of title – check for easements, type of title and any other information that needs addressing
Put the deposit money in a trust account
Calculate the adjustment of rates and taxes
Settle the property – act on your behalf, advise when the property is settled, contact your bank or financial institution when final payments are being made
Represent your interest with a vendor or their agent
For the seller, a conveyancer will:
Complete legal documents
Represent you in dealings with the buyer – e.g. request to extend dates, ask title questions etc.
Conveyancing is the final step towards buying your new home. Picture: realestate.com.au/buy
How do I find a conveyancer?
Just as you would interview prospective real estate agents, you should sit down and talk to multiple conveyancers before selecting one to oversee your settlement process.
A good place to start is by asking your friends and family if they can recommend a good conveyancer. If nothing comes from this, do some online research and ask for recommendations from your real estate agent, accountant and lawyer.
Once you have a list of prospective conveyancers, give them a call and ask a few questions (see below) to find one that meets your needs. Some conveyancers specialise in different types of real estate, which should help narrow your search.
When you think you’ve found a suitable conveyancer, run a background check to ensure they are legally allowed to carry out the work and have had no complaints made against them.
Questions to ask potential conveyancers:
Are you a member of the Australian Institute of Conveyancers?
What types of property do you specialise in?
How much will it cost? What are your fees and charges? What will I have to pay at settlement? What other costs are there?
How will you communicate with me and how often?
How long will everything take on settlement day? (This is important if you are arranging movers and other parties)
Article originally posted on the 28th Dec 2018 on https://www.realestate.com.au/advice/how-conveyancing-works/
Tags: Buying and selling property, Conveyancer, Conveyancing, Solicitor