Conveyance with Confidence
Have you finally found your dream home? Or are you ready to invest in some property? Perhaps you wish to sell your business, home or investment property? Then welcome to the world of conveyancing.
What is a Conveyance?
A “conveyance” is a written instrument legally transferring the interest in land from one person to another. Examples of conveyances include deeds, real estate contracts, or contracts for deeds, assignments, leases, mortgages or deeds of trust. “Conveyancing” is the legal work involved in preparing these deeds in order to transfer interest in land from one party to another.
Who is Qualified to do Conveyancing Work?
Some people choose to undertake their own conveyance or use a licensed conveyancer. Generally speaking, doing your own conveyancing can be a risky business, as you can’t get the same insurance available to legal professionals.
This means that if you make a mistake you are responsible and there is little avenue for financial compensation. Even if you have done your own conveyancing before, it is nonetheless advisable to see a solicitor. This is because laws change quite frequently and there may be complex and potentially costly problems catching you out when you least expect it. Speak to us at Luchetti & Co to ensure your conveyance is in safe hands. We will provide practical and effective solutions and will be easily accessible to ensure you get the most out of your conveyance from start to finish.
Stages of the Conveyancing Process
Checking your contract for sale
You need to be happy with your contract for sale before you proceed with your conveyance. “The contract for sale” is the legal document that describes the property, including the purchase price, details of the seller, buyer, real estate agent and conditions to the transaction. The contract will also contain special conditions, warranties and implied terms, which your solicitor will explain to you and ensure you understand and are satisfied with them. Various papers and certificates also need to be attached to the contract including:
- A title search from the NSW Land Registry Service, which provides proof of ownership
- A local council planning certificate
- A plan showing sewer lines from Sydney Water or a local authority
- Copies of other documents showing any restrictions to the use of land
- Building and pest inspection reports
- A survey to ensure measurements of the property are the same as the title and if there are any encroachments.
- A strata inspection report if the property is part of a strata scheme, such as units or townhouses.
The contract needs to be agreed in detail before proceeding to the next step.
Exchanging contracts
This is the exciting part where the vendor and purchaser check, sign, date and swap signed contracts. The balance of the deposit money is paid, typically to the real estate agent's trust account.
Preparations before settlement
“Settlement” is the culmination of the conveyancing process where solicitors for the vendor (selling party) and purchaser (buying party) meet in a PEXA space with their respective bank representatives to exchange legal deeds, pay the balance of the purchase price and complete other payments such as stamp duties.
Before this takes place however, a number of steps need to be completed, including:
- Requisitions on title, which is asking the vendor about the property
- Arranging payment of taxes such as stamp duties and land tax
- Preparing and examining any mortgage agreements, if you need a home loan
- Checking whether any government authorities have an interest in the land or if there are any planned developments which could affect the property
- Final Inspection and finding out any information that may have not been previously disclosed such as fence disputes or illegal building work
- Calculating adjustments for council and water rates
Attending settlement
You are now ready for the big day! Everyone now gets together electronically to make the final exchange of title and payments to complete the conveyance. If everything has been done properly, the settlement itself will be a smooth and quick transaction.
After settlement
After completing your conveyance, you don't need to lodge your legal documents with NSW Land Registry Service to formally register the change of ownership of the property, this is all done as part of the settlement.
A purchaser's solicitor needs to inform the owner’s corporation if a unit has been purchased.
Costs to Consider
Apart from legal fees, there are quite a number of costs in a conveyance such as property insurance, taxes and stamp duties. You will be in a much more comfortable position to get the most out of your conveyancing experience if you have a realistic idea of how much it will all cost. Speak to us at Luchetti & Co and we will discuss these costs and fees involved in your conveyance.
The Conveyancing Network
Apart from your solicitor, there is a large body of people, organisations and government departments involved with the conveyancing process, including:
- Surveyors
- Pest and building inspectors
- Sydney Water
- The Land and Property Information (NSW)
- The Office of State Revenue
- Local Council
- The Roads and Traffic Authority
- Financial representative where there is a mortgage involved
- Insurance company