What is conveyancing?
Conveyance -
Conveyancing Defined
The transfer of ownership of property from the seller's name
to the buyer's name.
Conveyancer
A person, used as an alternative to a solicitor, to carry out the legal
work involved in buying and/or selling a property. Note: It should
be checked that they are licensed to carry out this function.
The Conveyancing Process - what needs to be done during the process
A contract for the sale of land is an agreement between a buyer and
a seller that details:
- the identity of both buyer and seller
- the details of the property being transferred (as well as any other
items that will come with the property) and its condition
- the agreed priced
- the day on which the full amount will be paid
(settlement)
- other rights and particulars such as a ‘cooling-off’ period
or certain contingencies
regarding the availability of finance.
These are all things which need to be done to ensure that the property
doesn't get sold off to the wrong person.
How it all happens:
Seller lists their property with an estate agent, and their conveyancer
creates a draft contract. After having completed property searches
the seller’s conveyancer will list the details of the property,
and the identity of the seller;
Estate agent finds a buyer for the property, the buyer and seller will
then begin to negotiate over terms of the contract (not all clauses
will be negotiable). The draft contract prepared by the seller’s
conveyancer will then be amended with the buyer’s details, any
other particulars, as well as the sale amount agreed to;
Buyer’s conveyancer will scrutinise the contract and carry out
various searches to confirm that the property described in the contract
is the one actually being sold. These inquiries will also substantiate
that the property is owned by the seller, that it is in good repair and
not on land likely to flood or subside;
There may also be further negotiation about “cooling off” rights.
The buyer’s conveyancer may also attend to matters such as ensuring
the availability of finance for the purchase; and
Deposit is paid by the buyer and then contracts are exchanged. After
the exchange of contracts the seller’s conveyancer will execute
the transfer of the property title and will be held by them until settlement.
The Cooling-off Period
Contracts for the sale of land may include a “cooling off” clause.
This clause gives the buyer a period (three days in Victoria) in which
to decide not to proceed with the contract. If you are the seller, and
have already purchased another property based on the sale, the rescinding
of the contract will be greatly problematic. In Victoria a cooling-off
period will not apply in the following circumstances:
if you received advice for a legal professional before signing the contract;
the property will be used for commercial or industrial purposes (or,
if the land is more than 20 hectares, for agricultural purposes); and
the purchaser is an estate agent or a corporate body.
Protecting your Investment
A conveyancer will need to make all relevant checks and searches on
the land that is being purchased to make sure that the property in the
contract is the one being sold and is in the condition stated by the
vendor.
Your Conveyancer will make the following checks and searches for you:
- Land
Information Certificate provided by the appropriate municipal authority;
- Form 10 Building Certificate (residential only);
- Water Rate Certificate;
- Water Encumbrance Certificate;
- Land Tax Certificate;
- Department of Planning Certificate; and
- Vic Roads Certificate.
Some things about the property will not be revealed to you by the seller
of the property and it will be up to your Conveyancer to make sure that
your investment is protected by making all the necessary checks on the
property you are contracting to buy.
To protect you, your Conveyancer
will carry out the following checks on the property:
- Building Approval Certificates and Building inspections;
- Any development
proposals in the surrounding area; and
- Whether the land is polluted
or contaminated;
Do I really need a Conveyancer?
The buying or selling of a property is complex as well as risky. The
good news is that having a conveyancer act on your behalf virtually guarantees
you that your sale or purchase will go ahead smoothly. You should not
think of a Conveyancer as optional, but as crucial in making sure your
investment does not fall prey to risk.
Whether investing for the future, or buying into the ‘Australian
dream’, hiring a Conveyancer to handle your investment will enable
you to feel assured that you are in good hands
Some loan and mortgage companies insist on the use of a conveyancer
to ensure that the title deed passes correctly.
There are many aspects of the contract which can be complicated and
need specialist advice or to be checked over thoroughly.
Your property could be affected by any number of things :
Government authority proposals
Local council and state government compliance
Condition of the property as regards building and pests
Surveys
Leases
Strata reports
Easements and covenants
Stamp duty
Mortgages
GST
Land tax, council and water rates
These should be checked out thoroughly.
Additional costs which need to be check out and paid if necessary
The buying and selling of real estate in Australia is a source of considerable
revenue for both state and local (municipal) governments.
Any purchaser of property in any state of Australia must be aware that
there are many "extras" and duties attached to any sale - and
the purchaser is responsible for paying them.
The main State and local government fees to be aware of are:
stamp duty - click here for the sliding scale of stamp duties payable
in each state of Australia.
registration of mortgage
land transfer registration fee
municipal (or council) rates, which cover the costs of such services
as garbage collection, local park maintenance.
Registration of Title Deed
water rates, which cover the cost of providing clean water and sewerage
services.
All these charges vary, sometimes considerably, from city to city, council
area to council area. Your solicitor or the agent selling to you can
tell you the exact amounts for which you are liable
free legal info on conveyancing
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