Conveyancing refers to the legal process of transferring property ownership. This can involve a sale, lease or deed.
It’s important to understand conveyancing so you can make the most informed decision on buying or selling your home. A conveyancer is a great addition to your sales team.
Legal transfer of ownership
Conveyance refers to the legal transfer ownership by means of a document like a deed. The attorney drafting the conveyance ensures that all necessary paperwork is prepared and recorded with the correct state agency.
This is an important part of the process as property is highly valued. It is therefore crucial to ensure that all transfers are properly and accurately recorded. A failure to do so can potentially result in delays, legal challenges, and other issues that can affect your property’s future value.
When transferring ownership of real estate, for example, it’s essential to work with an experienced attorney who knows the rules in each state. This will ensure that the proper documents are prepared and filed in a timely manner, and that all applicable transfer taxes and gift tax exemptions are met.
Contracts
Melbourne conveyancing is the process whereby a seller transfers ownership of their property to a buyer. This can happen either by signing over the title of the property or by a legal written agreement.
This includes the preparation and negotiation legal written agreements such as title documents, contract documents or lease documents, and transfer documents (such mortgages and certificate lien). These conveyance documents contain important information about the purchase price, transfer date, and obligations on both parties.
The process starts when a prospective buyer makes an offer on a property, which is then accepted by the seller. The buyer’s conveyancer is instructed and they will obtain a contract pack from the sellers’ solicitor.
The contract details the sale, including the parties, the price, deposit, completion date and all other conditions. The conveyancer will then answer any pre-contract questions on behalf of the buyers and conduct searches.
Searches
Conveyancing searches are enquiries that your conveyancer will carry out to find out more about the property you plan to buy. They can reveal things such as whether planning permission for a new development has been granted that could negatively impact the property, details of common drains and access rights, and any outstanding council or water rates that might be due.
These searches are typically ordered after you have accepted an offer on the property. If you are buying with a mortgage, your lender may require that these searches be done before they release funds.
These searches are typically between PS100 and PS300 each, but can vary depending on the local authority or search company and what optional searches you choose. Often, it’s cheaper to get indemnity insurance, but this is not always necessary.
Settlement
Once a property has been purchased and sold, the legal and financial representatives of both parties meet on settlement day to complete the transfer of ownership. This can be done online through an electronic settlement system such as PEXA or offline (using traditional paper documents).
Before settlement, a final inspection of the property is usually completed. This is to ensure the property is in a suitable condition and any works that were meant to be carried out have been completed.
The property is then handed over to the new owner who takes possession and receives their keys. The new owner can then organise removalists, connection of power and water, and insurance cover if required.
