Do I Need a Conveyancer for my Property?
As someone buying or selling a home (or transferring property), you may think you can deal with many of the legal complexities on your own. If you’ve studied some basics about property law, or you’ve sold a home before, you may think you can handle things. This isn’t advisable if you haven’t educated yourself recently. For a first-timer, you absolutely shouldn’t attempt to deal with property legalities without some help.
A professional conveyancer guides you through the contract of sale and the many outlying issues that arise from property transfers. Even then, some people attempt to do conveyancing on their own just because they think they know the basics.
With this in mind, you may still ask yourself: Do I need a lawyer or conveyancer? The answer is assuredly “yes”. One of the main reasons for hiring a conveyancing lawyer is you may not have a legal practitioner’s or conveyancer’s professional indemnity insurance. With so many moving parts (and parties involved) in the process, it’s imperative that you have this insurance just in case something goes wrong.
Most of all, you won’t have certification on the latest industry requirements. With so much paperwork, a conveyancer works much like a regular attorney.
Which Type of Conveyancer Should You Hire?
The first thing to consider when realising that you do need a conveyancer is which type to hire. When you start looking around for one, you’ll discover that there are conveyancers, and conveyancing lawyers.
Differences between the two are considerable. While it depends on what you need done, it’s almost always recommended you use a conveyancing lawyer for most situations. Despite non-lawyer conveyancers having basic knowledge of property transfers, they still need certification through organisations like the Australian Institute of Conveyancers.
Hiring one with legal experience is going to give you more security since anyone working outside their legal bounds would mean voided insurance. You don’t want to engage with a conveyancer who is attempting legal work without sound knowledge of property law. This could leave you vulnerable to many mistakes, including potential legal and financial troubles due to incompetence.
A conveyancing lawyer understands exactly what’s involved in the Contract of Sale and Vendor’s Statement.
You’ll see the true value of a conveyancing lawyer once noticing how complex the contract of sale and vendor statements can be.
Why You Shouldn’t Prepare a Vendor’s Statement On Your Own
Otherwise known as a Section 32 Statement, your vendor’s statement provides details about your house before selling it to someone. It adheres to the Sale of Land Act outlining exactly what you need to list to a buyer before they buy your home.
As a protective document for buyers, it prevents you from hiding something the buyer doesn’t know about. Creating one of these on your own could easily lead to legal troubles if you end up exaggerating something, or making it incomplete.
Now you can see how important a lawyer is. One with a legal background prepares your vendor’s statement with clarity and thoroughness.
The question is, how much detail do you need to place into the statement to make it legally sound?
Working With Your Conveyancer to Make the Vendor’s Statement Complete
With your Section 32 statement, anything incomplete could mean the buyer pulling out of the sale. Your lawyer knows what the buyer needs to see for complete assurance they’re not being cheated. Even though your conveyancer prepares this statement, the buyer’s conveyancer will review it to make sure it’s legally correct.
The list usually starts with information about your mortgage and whether you still have any debts. It also details all covenants and easements you have pending. Zoning is another subject you need to include if there’s any future disputes on how much land you’re selling.
Don’t forget about listing all the outgoing rates you may charge to the buyer. They additionally need to know if your property exists in an area prone to bushfires. With some parts of Australia being overly dry, your conveyancer is going to scope this out and elaborate on the truth.
Including an Owners Corporation Certificate
Without a conveyancer, you likely wouldn’t remember to include an owners corporation certificate in with your vendor’s statement. Your conveyancer takes care of this for you, including all accompanying documentation that needs to be included.
Most people selling their homes put together a vendor’s statement as soon as they decide that they are going to sell – your real estate agent will make sure you get this sorted quickly so that they can start advertising to potential buyers. It gives some time for your conveyancer to put it together and file it. The buyer can search the owners corporation register for free in the meantime before a settlement takes place.
Putting Together Your Contract of Sale
Thoroughness is just as important when preparing your contract of sale. There is no doubt that if you create the contract on your own, you’d forget key details only a lawyer would know through experience and education.
In the contract, they’ll include every detail to avoid any future legal disputes or discrepancies. They’ll include details about the property, buyer name, name of the real estate agent, names of all conveyancers involved, the home’s price, deposit paid, settlement balance, and any contract clauses.
Titlexchange is a national law firm with a team of experienced lawyers who conduct property transfers for all types of transactions across Australia. Book a call with one of the team to find out more about our packages, pricing and processes.