What is Conveyancing?
Conveyancing is the area of property law that deals with the transfer of real property between sellers and buyers.
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?
Generally the process begins with the drawing up of a Contract for Sale. The Contract will include things such as:
- Identifying the land: the street address and legal property title details
- Timing of the transaction: the length of time between signing and completion of the contract
- Inclusions/Exclusions: what’s included or specifically excluded from the sale
- Special conditions specific to this particular property and transaction
It’s crucial to know what you are purchasing – not just the terms of the transaction but the future legal uses of the property.
The contract 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.
There is a set length of time between the contract becoming binding and the contract being settled or completed. In this time the purchaser of the property has a lot to do including conducting various checks on the property, paying stamp duty, organising insurance and getting any loan arrangements in order, and the seller of the property 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.
On the day of settlement everything has to be in place. We will talk you through the settlement process through the electronic settlement platform PEXA ensuring that sufficient funds are ready for settlement and as a vendor ensuring you know exactly where the sale proceeds are being distributed.
As buying or selling property is one of the biggest financial decisions you will make it’s important that you get expert advice. Legal expertise and diligence is well worth the cost.
Still Have Questions?
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