Finding that perfect home is challenging. Yet once the goal is accomplished, it is exhilarating. However, finding the dream home is just the first step in making it legally your own. Now, you have all of the paperwork and legalities ahead of you. Maybe you are the seller of a property. You spent many long days preparing the home so it would look its best, you interrupted many family times to have the home shown, and someone has finally made you an offer to purchase. Now, you need assistance in the final phase of the task. Whether you are buying or selling a property, obtaining the assistance of a conveyancer is a smart move. A conveyancer is an expertise at conveyancing and makes sure the process is legal and binding.
Just what is conveyancing?
Conveyancing is the legal process by which one parcel of property is transferred from one person to another. In simpler terms for the buyer, it means you gain the title or deed to of the property you purchased. If you are the seller, then you legally transferred the title or deed to the buyer. But, as simple as that definition sounds, much more is involved. Actually, conveyancing is a legal process involving many steps.
Conveyancing of property is a legal process
Conveying a piece of property is a legal process best handled by a professional with the appropriate qualifications. One important qualification needed is the license and ability to handle legal matters. Many of the transactions involve a lawyer. It is for this reason that many people opt to hire a lawyer who specializes in conveyancing. However, if you decide to hire a conveyancer who is not a lawyer, make sure the person is listed with the Australian Institute of Conveyancers. It is important to obtain a professional because if the process is not completed properly, someone could be taken advantage of, lose money, or the documents could be nullified.
Conveyancing involves 3 stages
The 3 stages of conveyancing include:
Before contract: This involves action prior to entering into a contract to purchase. Until there is a contract of sale and deposit given, there is no deal. Many prospective buyers may express an interest and even give what’s called “interest” money, but that is not the same as a deposit. The agent should provide the person who has given interest money with a receipt stating that they have no contract at this time. In addition, if another potential buyer gives interest money later, the others must be notified.
Before completion: After someone makes a deposit, the contract process begins. The property is secured for purchase. However, several more actions must take place to finalize the deal. A conveyancer assists both buyer and seller with the appropriate paperwork to expedite these next steps. Several documents will be inspected, prepared, and handled. Your attorney will give you the scope and sequence of these steps. Some of these will include examining the contract and arranging for inspections to be scheduled. The main goal of this phase is to ensure the property is free and clear for transfer to the new owner.
After completion: The property is officially transferred on the day of settlement. How long it takes to get from the contract signing until the settlement date depends on several factors. The length of time to complete the inspections is one factor. Also, if there are any tax arrears due, that could delay settlement. At the time of settlement, the buyer will give the remaining amount of money due. If the buyer needs to secure financing to purchase the property, that must be finalized before the day of settlement. Finally, the Land and Property Information NSW officially transfers the title. The buyer now takes possession of the property.
What role does the conveyancer play?
During all stages of the conveyancing process, several documents must be prepared and handled. Some of which require a lawyer to file. If you hire a conveyancer who is not a lawyer, then you may have to pay added fees because a lawyer will need to be secured to handle certain parts of this process. The conveyancer will help the buyer with the following:
- Prepare necessary documents such as contract and memorandum of the transfer.
- Handle deposit money by setting up a trust account.
- Research background of the property to ensure the title is free and clear.
- Deal directly with the seller on your behalf (arranging to sign, negotiating offers, and so on).
- Figure the taxes and rates.
- Check the property for easements.
If you are the seller of a property, here is what you can expect from the conveyancer:
- Prepare and handle all legal documents.
- Handle negotiations with the buyer.
- Represent your interests in the selling process.
Cooling off period is given to the buyer
The buyer is given an opportunity, known as the cooling off period, to change his/her mind about making the purchase. During this time period, he or she can, in fact, walk away from the deal with no repercussions.
One of the most important considerations when buying or selling a property is to ensure your interests are protected. Securing the help of a conveyancer with a legal license eliminates the risk of being taken advantage of or failing to handle the legal issues properly. If you have any questions or would like to discuss conveyancing in more detail, please connect with us today.