What’s Involved in Conveyancing?

Sep 8, 2021

Buying and selling property is not a straightforward process, from contracts, offers, mortgage arrangements, and title transfers, it involves plenty of paperwork and legal documents. If you’re unfamiliar with the ins and outs, a conveyancer can provide crucial assistance and support throughout the process.

One of the most common questions we get asked is “what’s involved in conveyancing?”. It’s a good question, as the role of the conveyancer can seem complex and unclear to those who are unfamiliar. 

Here’s what’s involved in conveyancing…

 

11 step conveyancing checklist

  • Preparing contract of sale 

Preparing the contract of sale is one of the most important steps involved in conveyancing. The legal document must contain specified documents, certificates and disclosures, so this is why trained experts should be the ones to prepare them. If the documents are incorrectly prepared or missing information, it can lead to costly delays. Disputes can also arise between vendors and buyers, so it’s important for a professional to mediate and ensure that the contract of sale meets the best interest of their client.

  • Making an offer & negotiations

The offer is when a potential buyer is interested in a property and they make an offer to purchase it. The vendor or seller may accept the offer, or they may enter into negotiations with the buyer. Negotiations can be about things like price and the conditions of sale. Having a conveyancer involved in the negotiation process can better protect the interests of both parties.

  • Paying the deposit

Paying a deposit doesn’t necessarily secure the property. The deposit doesn’t act as a binding contract, instead it is simply to show the vendor that the buyer is serious in their offer. At this stage, gazumping is quite common, which is where the buyer finds out the vendor has accepted a different offer and exchanged contracts, or when the vendor accepts two or more offers and increases the asking price to elicit a bidding war.

  • Risk

The conveyancer will assess any risk involved in the sale or purchase of a property. This could be the risks involved with the property itself, the contract of sale, any current insurance policies or strata titles for the property, and many other aspects.

  • Exchange of contracts

In this step, the final contracts are exchanged between parties. Each party will get a copy of the contract, which will outline things like the agreed upon price, settlement date, any inclusions, caveats, and other significant information for the property. The final contracts are agreed to and signed and then a cooling-off period begins. The cooling-off period varies in length depending on the state or territory the sale is occuring in. 

  • Transfer of title

After the cooling-off period, the transfer of property title happens. The buyer’s conveyancer will prepare a transfer document, get the buyer to sign it, and then finalise payment of any stamp duty needed for the documents’ registration. The conveyancer will then send the transfer to the vendor’s conveyancer for the vendor to sign. 

  • Requisitions

After the exchange of contracts, the buyer’s conveyancer will normally send a list of formal questions about the property to the vendor’s conveyancer. This is known as requisitions on title. These questions obtain from the vendor any information that might not have been disclosed or discovered during inspection of the property.  This could oncover things like disputes with neighbours relating to fences or agreements with neighbours regarding land maintenance.

  • Adjustments

Before reaching settlement, “adjustments” will be made. For example, if it’s revealed that the vendor has paid council rates for a year, the buyer must pay an additional amount to the vendor for the portion of the year that they will own the property. Common adjustments include council rates, water rates, land tax and rent for tenanted properties.

  • Settlement

The all important settlement (or completion) is reached on the day that the buyer pays the balance of the purchase money to the vendor. On the date of settlement, conveyancers for both parties meet and hand over title documents in exchange for the payment. They will ensure that everything is in order, correctly lodged, and clear of any restrictions that might not have been previously recorded.

  • Post-settlement

After settlement, the conveyancer’s job isn’t finished. The buyer’s conveyancer will register the transfer documents with the Land Titles Office. The Land Titles Office then advises relevant authorities that the property has a new owner. This includes advising local council, water authority and the Valuer General’s office.

 

As you can see, there are many steps involved in property conveyancing. Your conveyancer will handle all the important steps in the process to ensure it runs as smoothly as possible for you. 

If you’re looking for a conveyancing solicitor in Sydney with over 24 years experience in the industry, get in touch with us today. We can discuss your needs and give you a better understanding of what’s involved in conveyancing for your specific requirements.