What is conveyancing?
Conveyancing is the legal transfer of a property from one entity to another. If you plan on purchasing a home or if you inherit one, you’ll be dealing with the conveyancing process. A conveyancer may be doing the same work you would be doing if you transferred the property yourself.
However, you could make a costly mistake that would cause you to forfeit your 10%. Alternatively, hiring a conveyancer allows you to benefit from their indemnity insurance. This insurance provides coverage if the professional conveyancer makes a mistake in the paperwork.
A conveyancer also provides advice and information regarding the sale of a property. Conveyancing involves the preparation execution and lodging of documents for the home buying process. It also involves investigating the title of a property. The conveyancer ensures that you meet your legal obligations while protecting your best interests.
It’s important to be aware of any outstanding rates or proposals affecting the property. The conveyancer conducts these inquiries on your behalf. This line of work requires specialized knowledge that many people simply don’t possess. It’s essential to have someone in this role to make sure the transfer of real estate ownership occurs smoothly.
While it’s not legally required to have someone conduct this specific work, you’ll find that the process is much easier this way. It’s beneficial to have someone on your side that is highly familiar with laws regarding subdivision, sale, and transfer of real estate property. Through the conveyancing process, the buyer will be made aware of any potential pitfalls in the contracts.
Conveyancers have a lot of experience communicating with real estate agents and banks, making interaction far easier. They have knowledge of many different types of properties; from retirement villages to auctions to private sales. The conveyancing process involves the completion paperwork you may not be familiar with.
For example, if you’re buying a home, you can have your conveyancer prepare a Statement of Adjustments for Settlement. If you’re selling a home and want to use the deposit money you have received before the property settles, the conveyancer prepares a Section 27 Early Release Deposit Statement. If you don’t understand how to prepare the documents or could use help with the legal process, a conveyancer will benefit you.
Conveyancers have a lot of knowledge about the areas they work in. The conveyancer may have even worked on deals on your same street. This intimate knowledge gives you a major advantage.
They can accurately anticipate issues the home may have because they know the area and have solutions ready. Conveyancers have established relationships that will benefit you too. Consider that the conveyancer is connected to real estate agents, bankers, surveyors, and more. They can recommend the best professionals in your local area.
The three stages
During the pre-contract phase of conveyancing, the solicitor examines all documents completed by the seller. The solicitor will also analyze the contract, reviews your mortgage, and handles any legal paperwork on behalf of your lender.
During pre-completion, all parties involved agree on a completion date. The solicitor of the buyer and the seller will exchange contracts during this stage. The signed contracts benefit the buyer and the seller, protecting both parties in case either one backs out and breaches the contract.
If this does occur, both parties have legal rights to go to court to ensure completion. After all enquiries have been satisfied and all necessary documents are complete, both parties receive signed contracts. Then your solicitor will request deposit monies so that you can receive and sign the deed.
Your deposit is requested in case you don’t follow through with your end and are unable to pay the balance on the completion date. The deposit monies are kept if the balance is unpaid. At this point, your solicitor will pull up the Transfer Deed so that the property can be transferred into your name after completion.
On behalf of your lender, some last minute searches of the Land Registry will occur. Your solicitor will provide you with a final statement of all the expenses. If you’re buying a home with a mortgage, your conveyancer will request the monies before the completion date. The amount will need to clear before the completion date.
Your conveyancer will pay the Stamp Duty Land Tax. Once your conveyancer receives the Transfer, title deed, and other necessary documents, they will register your name with the property in the Land Registry. You’ll receive your registration back from the Land Registry.
At this point, if you have a mortgage your conveyancer will send a copy to your lender as evidence that registration has cleared. This registration remains at your lender until you fully pay off the loan.
What is a conveyancer?
Conveyancers know it can be stressful to buy or sell a home and they alleviate the discomfort and unfamiliarity. A conveyancer is a professional assigned to transfer ownership of a property. When it’s time to sell, purchase, transfer, or subdivide, a conveyancer steps in to complete this work.
The conveyancer makes sure that all paperwork involved in the property is free of errors and has no inconsistencies. It is their duty to act on your behalf during the property transfer. There is a great deal of organization involved with the sale of a property and the conveyancer keeps up documentation and dates.
A conveyancer consists of many roles rolled into one; legal advisor, personal assistant, and liaison. The conveyancer does charge a fee for their services and you should inquire about these costs. When you know you’re serious about buying a home, this is a good time to contact a conveyancer.
The person can immediately begin reviewing the contracts and providing advice. When selecting your conveyancer, ask pertinent questions like; are they a member of a conveyancer organization, what services and fees do you offer, and how do you maintain communication throughout the buying process. You might also want to ask your conveyancer how much the government charges and fees will be.
The conveyancer will look out for certain things on the buyer’s behalf such as; charges on the property, whether appliances are in working order, plumbing, and electrical wiring. As you can see, these are all important details to know about within a home. This is the benefit of having a conveyancer to essentially do the work for you and determine if your interests are being met.
Conveyancers conduct the following activities:
- Title searches
- Searches local authorities and government departments
- Stamps required documents
- Attendance during the settlement
- Liaison between financiers and mortgagors
- Calculates adjustments of taxes and rates
- Prepare and certify legal documents
There are some basic items you’ll need to provide to the conveyancer such as identification. They will also need the funds to make purchases on your behalf. Of course, any unspent monies will be given back to you.
The process of conveyancing is specific and be complicated. It’s far easier to hire a licensed conveyancer for real estate transactions than doing the work and learning the laws yourself. In addition to analyzing the contract, the conveyancer will also check if there are any problems on the physical property.
They will look at flood risk, developments in the area and factor this information into the buy or sell. The conveyancer legally secured your interest in the property whether you’re buying or selling.
When should I use a conveyancer?
A conveyancer is appropriate for any real estate situation that involves the transfer of ownership of a physical property.
Conveyancers are useful for instances involving:
- Buying or selling a property
- Subdividing land
- Updating a title
- Registering, changing, or moving an easement
If you’re planning on buying or selling land, it’s a good time to begin researching which conveyancer you’re going to use. Depending on where you live, you may be required to have a conveyancer before you can put your house on the market. This is the case in Tasmania, Victoria, and New South Wales. Likewise, you may be required to have a conveyancer to accept an offer on your real estate.
What does a conveyancer do?
When you are buying a property, there are certain tasks typically performed by the conveyancer. This professional will; make sure your bank application is solid, advise whether you should consent to a Section 27 Early Release of Deposit, review the Section 32, and organize the settlement with banks on the other side of the deal. In the case of buying a home, the conveyancer conducts activities such as research properties, prepare documents, check for easements, and place your deposit in a trust account.
This is a very short list of what your conveyancer will do for you, as their position entails all aspects of purchasing and selling a home. It is part of this professional’s job to make sure you’re aware of all matters involving the home. They take all of their real estate knowledge and put it to work for you in a given territory or state.
While this professional’s job may seem complex, it’s relatively simple. The conveyancer manages and oversees the sale of a property as ownership changes hands. Usually, this professional is used for home transactions but they also assist with land division and investment properties.
Here are a few activities you can expect your conveyancer to do:
- Liaison with banks and lawyers
- Prepare a Section 32
- Ensure you’re prepared for important dates
- Liaison with other conveyancers involved in the sale
- Ensure completion of Section 27 Early Release of Deposit form
- Ensure the bank is ready for settlement
How do I find the right conveyancer?
There are many different ways to get connected to a property specialist. One method is to find someone that your friends or family have already worked with. You can reach out to friends and family that sold or bought a home in the recent past.
Another way is to ask your Independent Financial Adviser or IFA. Likewise, a mortgage broker or lender may be able to make a good recommendation. In some cases, a real estate agent will recommend a conveyancer because they often work with these property specialists.
A quick online search for conveyancers will pull up a host of search results to choose from. It’s important to know that all conveyancers need to be a member of the Council for Licensed Conveyancers. Solicitors charge different fees for their services, it’s best to check with each individual property specialist because they may have a different fee schedule.
Solicitors may charge either a fixed fee, hourly rate, or a percentage of the price of the property. It should be simple to get a quote from your shortlist of solicitors to get the best price.
The conveyancer is charging you for a number of items including:
- Land Registry fees
- Bank transfer
- Stamp Duty (applicable to some properties)
- Additional work
Your solicitor may have a system set up that allows you to track the progress of the sale. You can also inquire whether the solicitor will have someone available to step in if your main contact is away or out sick. It might be most feasible to drop off necessary documents at your solicitor’s office if they are nearby, so you may want to choose a local professional. A local conveyancer may have information on leases and arrangements unique to your specific area.
What you look for in a conveyancer
You definitely want your conveyancer to be a good communicator. You will be relying on them for information throughout the property transfer process. You want someone who will clearly explain everything you need to do and why.
A great conveyancer will make sure you know what to expect and that there are no surprises. It’s also key for your conveyancer to be organized. They will be asked for paperwork and it will need to be provided at the right time to avoid problems.
A great conveyancer will be able to handle unexpected changes and still conduct the transaction smoothly. Consider whether you plan on visiting your solicitor in person or if you would rather communicate via email and phone. Make the choice that suits you best. The conveyancer you choose should be transparent about how much everything will cost.
When selecting a conveyancer, pick an individual that has the proper accreditations. For Conveyancers, this would be the Council for Licensed Conveyancers. Read reviews to gauge what the experience of past clients has been.
When you’re reading the reviews, you’re really finding out how solid the conveyancer’s reputation is. Find out how efficient the conveyancer has been in the past. It should take a period of 8-10 weeks on average to complete the purchase. In some cases, the completion concludes in only six weeks.
Also, find out what kind of technology the conveyancer is using. Some professionals have portals that inform you of every step of the transaction while others use text notifications. It’s helpful to know what kind of system they’re using because most people want a regular update during the process of transferring ownership. The sooner you talk to a conveyancer, the better. It’s not necessary to wait until you’ve signed a contract.
What questions do I ask my conveyancer
A good conveyancer will not have any problem providing their credentials to you. Not all conveyancers are created equally and you’ll need to ask the right questions to make sure your selection is more than capable of handling the transaction. There is nothing wrong with moving on to another conveyancer to find the right fit.
You’ll need to trust this person, so take care when making your selection. You should ask the conveyancer what their specialty is. The person may say their specialty is apartments, subdivisions, cross leases, or another type of real estate.
Once you’ve narrowed the shortlist down to one or two conveyancers, conduct a background check. Make sure they have no complaints and they’re legally able to proceed with the work. The process of choosing a conveyancer is much like the traditional interview process.
You want to check their qualifications and see why they’re fit for the job. Ask about relevant organizational bodies the conveyancer may be part of. Here are some questions to ask a conveyancer you’re considering working with.
You may directly ask the questions or get the details during your conversation. Feel free to ask any other pertinent questions not included on the list.
Questions for your conveyancer:
- How much can I expect to pay in charges and fees?
- What is the cost of additional service?
- What government charges and fees will I be required to pay?
- How long does it take to settle?
How often will we communicate?
- How do you keep me up to date with what’s going on during the process?
- How long have you been a property conveyancing?
- Do you have insurance protection?
- Have you dealt with transactions similar to mine?
It may be beneficial to ask how the conveyancer handles certain problems to gauge their level of customer service. For example, you can ask what you owe if the sale falls through and what their method of handling disputes is.
Why should I use a conveyancer?
Look for a reasonably priced conveyancer whose prices are not suspiciously low or astonishingly high.
Takes the work off of your hands:
Transferring ownership of a property can be a great deal of work. There are many hours put into the job, from liaising with building inspectors to mortgage brokers. Many people with a career or family simply don’t have the time to do the conveyancing themselves. A professional has the availability to deal with time-consuming details.
Saves you money:
Mistakes can be costly. Some homeowners or buyers have attempted to make a DIY job out of conveyancing only to skip over a clause in the contract that requires more money to be paid. Hiring a conveyancer helps you avoid paying unexpected fees you may have missed that could have been avoided.
Years of expertise at your fingertips:
In addition to doing all of the grunt work, hiring a conveyancer allows you to benefit from their knowledge and experience. More than likely, you will not be the conveyancer’s first client. Let their past successes and mistakes benefit you.
A more affordable choice than a solicitor
Most often, a conveyancer gets the job done well and more affordable than most solicitors. Solicitors perform a similar job function but usually in more complex real estate transactions.
Peace of mind:
Knowing you have a licensed professional on your side gives a sense of peace and lets you know that you’re not alone. They will ensure you know exactly what you’re getting yourself involved in and understand every clause of the contract. Not to mention, a knowledgeable expert can get the job done faster than a novice.
Contracts are legally binding and you need a qualified, trained professional to help you stay organized. Signing contracts without knowing what you’re doing is dangerous business. A conveyancer will keep you on the straight and narrow and make sure the transaction runs smoothly
Legal jargon can be unfamiliar and even confusing. Absolute comprehension of all government, legal, and financial documents are necessary. By hiring an expert, you can be sure that you’ll understand every step of the home buying/selling process an no mistakes will be made.
Selling and buying a home can be complicated. Thankfully, there are professionals available that have seen all manner of scenarios before. Plus, a conveyancer will be up to the moment regarding all laws pertaining to your transaction.
If you’re buying, the conveyancer will perform an extensive amount of searches that would otherwise consume your precious time. After you provide them with the parameters of what you’re looking for, they will spend a great deal of time finding the specific property you desire.
Get a contract or a mortgage that’s exactly what you’re looking for. Having a professional on your side means that your conveyancer can speak with the seller’s conveyancer. If you had not hired one, you would have to interface with the seller’s conveyancer yourself.Tweet
Tags: conveyancers, conveyancing