What is Conveyancing and How Does It Work in Australia?

Buying a house is a dream of almost everyone throughout their lives. People who buy their own house at a young age are lucky. It takes a lot of work and struggle to buy a home, especially if you are living in a country like Australia. The average age of a home buyer in Australia is 34, in 2000 it was 24. Buying a house is a dream and a massive achievement for people.

“If I were asked to name the chief benefit of the house, I would say: the house shelters daydreaming, the house protects the dreamer, and the house allows one to dream in peace.”

– Gaston Bachelard –

Buying a house is not just a financial challenge; several other factors influence this process. One of them is the legal process of buying or selling a home. People believe they can carry out all their legal responsibilities independently. But let me tell you, this is not true.

Wonder? How?

Let me explain the conveyancing process, when you may need a conveyancer, and how conveyancing works. I know you might find this process a bit complicated, but after reading this blog thoroughly and making the right choices, you will experience a seamless process. Let’s dive into the details together.

What is Conveyancing and What Does a Conveyancer Do?

Conveyancing refers to changing or transferring the ownership of a legal land title from its current owner to a new one. This transfer of ownership can happen, whether from a person or an entity. Significant conveyancing steps include:

• Pre-contract
• Pre-completion
• Post-completion

What Does a Conveyancer Do?

Conveyancing includes all the legal factors involved in transferring ownership of land or a house from the vendor’s name to yours. It may not look like a big job, and you might think about handling it on your own, but it’s not true. A transfer of ownership is not a piece of cake. You should always consult a conveyancer before taking any steps.

A conveyancer can help liaise with all the parties involved, obtain a title search, review the vendor’s statement, and do many other tasks that need the attention of a professional. You must call in an expert conveyancer or a solicitor if you have solid legal credentials or complete knowledge of your ownership transfer.

Conveyancing is both time-consuming and complex. Several factors must be considered in this procedure, such as analysing the sales contract to determine any hidden terms and conditions, checking for pending payments or taxes on the property, and looking through the governmental records to determine any upcoming planned developments, unlawful buildings, or land disputes.

Wait !! I am not through yet.

It is a lot to handle on your own. But conveyancing continues further. Conveyancing also includes calculating the water and council taxes from the date of settlement. You must also oversee the change process with your state’s official body responsible for this. You must understand that all these tasks can only be done with the help of a professional.

You might be thinking about using online conveyancing kits, but I recommend you not be fooled by these kits. This is a job that requires the attention of an experienced professional, such as a solicitor or a conveyancer. Aussie Legal Partners has your back here with a team of expert commercial law solicitors. Our lawyers’ expertise will help you experience a seamless process.

When to Hire a Conveyancing Solicitor?

Have you made up your mind about buying or selling a property and are wondering whether you should hire a conveyancing solicitor? There is not a specific answer to this question. Most states in Australia recommend that you hire a conveyancer before starting the selling process, or if you are buying a property, you should consult a conveyancing solicitor before making an offer.

Suppose you need a detailed answer about when you should hire a conveyancer or engage a conveyancing solicitor in your case. In that case, it all comes down to your personal preferences and circumstances. A conveyancer can reveal information about a property or transaction you would not have discovered. This information will preserve your financial interests and may be enough to cause you to walk away from a transaction.

Moreover, a conveyancer will guide you to fulfill your legal obligations, ensuring you don’t get into trouble because of missteps. For instance, a potential property buyer has the right to know about any easement related to your property. If you cannot provide the buyer with the information, the law will hold you accountable.

Need any assistance? Contact us now.

Difference Between A Conveyancer And A Solicitor

Below table shows the major differences between a conveyancer and a solicitor.

Conveyancer	Solicitor
A licensed conveyancer is a certified professional who can act on your behalf in property ownership transactions of property.	A solicitor is a legal representative that can help you with property- related matters along with other legal matters, unlike a conveyancer.
Conveyancers are only allowed to handle the property transactions in a specific state where they received the certification.	A solicitor can handle your property transactions all over Australia and is not bound to a specific state.
If you are living in NSW and buying a new property in NSW you can seek help from a conveyancer.	If you are living in NSW and buying a property in QLD, you can contact a solicitor to help you out in the process.

How Does Conveyancing Work in Australia?

Conveyancing is an extensive, fourteen-step procedure. The explanation of these steps is mentioned below.

1. Contract of Sale

The initial and vital step is the contract of sale. It is a legal document containing the terms and conditions related to transferring property. These documents are designed to prevent any dispute between the buyer and the vendor during the deal. Preparing these documents as a professional is essential because the contract’s requirements must be fulfilled.

2. Make an Offer

Once you are interested in a property, the next step is to make an offer. After the potential buyer makes an offer, it is up to the vendor to accept it or make a counteroffer. If the vendor makes a counteroffer, both parties enter into negotiation over the property.

3. Paying a Deposit

Once the vendor and the buyer have concluded the negotiation phase, the buyer often decides to pay a check to represent their interest in buying the property or as a sign of their faith in the deal. The amount of this deposit is not fixed; it varies from person to person or depends on the cost of the property.

4. Buying at Auction

At auctions, properties are sold to the buyers with the highest bid. Once an individual makes the highest bid, he is bound to buy the property right away. The vendor needs a solicitor or conveyancer to review the selling contract before the auction to ensure everything is being carried out in order.

5. Risk

The seller is liable for any property damage that occurs before the sale is completed. Buyers are encouraged to insure the property upon contract exchange and before settlement. Buyers in Queensland and the ACT accept risk as soon as the contract is signed.

6. Paying a Deposit

When the vendor and buyer agree on the final contract exchange, they receive the contract detailing the legal restrictions, price, settlement date, and inclusion. The deposit amount is 10% of the total purchase price, and the buyer is liable to pay this amount before the exchange. The remaining amount is paid after the settlement.

7. Cooling-off Period

If the purchase occurs through a private treaty, the buyers enjoy a cooling-off period after the exchange. Sales that happen during auctions are not eligible for the cooling-off period, which does not apply to sales at auction. If a cooling-off period applies, the purchaser has the option to revoke the contract before the end of the cooling-off period.

8. Transfer of Property Title

It is important to pay stamp duty before settlement to register the transfer of property. The transfer documents must be prepared by the buyer’s legal representative, who must sign them, ensure the seller signs them, and pay stamp duty.

9. Time For Completion

“Time of the essence” refers to strict deadlines that must be met, or you can face contract termination and fines. In Queensland, time is always of the essence, although other areas may require a notice of enforcement of this provision. Timeframes for completing property transactions can be negotiated, with “off-the-plan” acquisitions taking extra time because of construction and title issuance.

10. Requisitions

The buyer’s legal team is sending a requisition to inform you about the new property details. They also perform further searches to guarantee no hidden faults or concerns. If any problems are found in the property, the buyer can cancel the contract, negotiate a lower sale price, or claim damages.

11. Outgoing Mortgagee

Suppose the vendor has a mortgage on the property. In that case, the mortgagee must be called to provide a pay-out number and present at settlement to hand over a discharge of mortgage and, in many cases, the certificate of title.

12. Adjustments

When the process reaches the settlement stage, “adjustments” will be made. For example, the council rates were paid for the entire year. The purchaser must pay the vendor an extra sum for the year they will own the property. Standard adjustments include council fees, water rates, strata body corporate payments, land tax, and rent if the property is rented.

13. Settlement

settlement occurs when the buyer pays the remaining balance to the seller. A final title search on settlement day ensures no new encumbrances. It’s crucial to check the PPSA register for clear titles on included chattels.

14. After Settlement

The buyer or their lender registers the property transfer, clearing any mortgages and notifying authorities of the new ownership. If settlement is delayed, the buyer may incur high interest and risk contract termination with a loss of deposit if they fail to complete on time.

Closing Insights

Here is a wrap-up for this blog. If you have read it thoroughly, this blog will be your ultimate guide to buying or selling a property. To avoid getting stuck midway, it is best to gather as much information as possible before starting a new process. Another critical step is to seek help from experts.

Aussie Legal Partners has a reputation in the justice sector for its expert lawyers, professionalism, and client-centric approach. Our commercial law solicitors are the best choice for you. We can help you sell and buy property while keeping your interests in mind. You can have your first free initial consultation with us today.

FAQs

What is conveyancing when buying a house?

Whenever you buy or sell a property, specific legal requirements are involved. The process of preparing legal documents, such as the selling or buying contract, is called conveyancing.

How much does a conveyancer cost?

The average conveyancer charges somewhere between $720 to $2,200. The cost of a conveyancer varies from state to state in Australia. It also depends on the conveyancer’s experience.

Do I need a conveyancer to buy a house?

In Australia, a buyer or seller is not legally obligated to use a conveyancer, although it is often advised. Although several online guides are available for the conveyancing process, it is recommended that a professional be used.