What does a conveyancer do in regards to property transfers? Here’s a short rundown of the 8 steps for all property conveyancing. A conveyancer is a professional who oversees the legal transfer of property ownership from one party to another.

They handle all the administrative and regulatory requirements involved in buying, selling, or remortgaging a property.

A good conveyancer conducts thorough searches, prepares and reviews legal contracts, calculates adjustments for rates and utilities, and ensures all compliance checks are completed.

Their role is to facilitate a smooth and lawful transition of property titles while protecting the interests of their clients. Here’s a general guide to how the process works:

1. Preparation and Sale Contract

Pre-Contractual Stage: Before the property is listed, a seller (vendor) usually consults with a conveyancer or solicitor to prepare a Contract of Sale and a Vendor’s Statement (also known as a Section 32). The Section 32 Statement must be provided to the buyer before they sign the Contract of Sale.

The Section 32 document provide potential buyers with vital information about the property and outlines the terms and conditions of the sale. This is what a conveyancer does when selling a house. This includes the purchase price, settlement date, title details, zoning, outgoings, and any other easements or covenants affecting the property as well as any special conditions that may apply.

It is important to ensure that the Contract of Sale is accurate and complete, as it will form the basis of the transaction.

2. Marketing and Offer

Property Listing and Viewing: The property is put on the market, and interested buyers view the property.

Making an Offer: Interested buyers make an offer through bidding or negotiations. Once an offer is accepted, both parties sign the Contract of Sale, and the buyer pays a deposit (usually 10% of the purchase price). Here’s what a conveyancer does when buying a house.

3. Exchange of Contracts

Once the Contract of Sale and Section 32 Statement have been prepared, they are exchanged between the buyer and seller. This exchange can take place either in person or electronically, and once the documents are signed, they become legally binding.

4. Due Diligence (Cooling-off Period)

Cooling-off Period: In Victoria, buyers have a cooling-off period of three clear business days from the signing of the contract unless it’s at an auction or three clear business days before or after a publicly listed auction. The buyer can rescind the contract during this period but may be liable to pay 0.2% of the purchase price as a penalty.

5. Financing

Loan Approval: If not already obtained, the buyer finalizes their mortgage or loan arrangements to ensure the remaining funds are available by settlement.

6. Pre-settlement Checks and Processes

Title Search and Checks: The buyer’s conveyancer conducts various searches regarding the property to ensure there are no legal encumbrances or issues that could impair the buyer’s ownership rights.

Inspection: It’s advisable for the buyer to conduct a final inspection of the property to ensure it is in the same condition as when it was sold.

7. Settlement

Settlement Date: The completion of the conveyancing process is known as the settlement. On this day, the balance of the purchase price is paid to the seller, and the buyer’s lender (if applicable) registers a mortgage against the title. The conveyancers facilitate the exchange of legal documents and ensure that all financial adjustments (council, water, and other rates) are settled.

Transfer of Ownership: The title and ownership of the property are formally transferred to the buyer. The transfer is recorded with the relevant governmental body, typically Land Use Victoria.

8. Post-settlement

Keys and Access: The buyer is granted possession of the property, typically receiving keys and other access devices.

Registration of the Title: The new owner’s details and any mortgage details are registered with the Land Titles Office, formally completing the transfer process.

Role of Professional Conveyancers

Throughout this process, the roles of various professionals are crucial:

Conveyancers and Solicitors: They handle the legal aspects, documentation, negotiations, and advisory throughout the buying and selling process.

Real Estate Agents: Facilitate the marketing, viewings, and negotiations of the sale.

Financial Institutions: Provide financing and handle financial transactions for the purchase.

Additional Fees Associated With Buying A Property

Stamp Duty: Buyers must also pay stamp duty, which is a tax levied on property purchases. The amount is based on the purchase price and must be paid at or before settlement.

Building and Pest Inspections: Though typically done during the due diligence phase, buyers often conduct these inspections before finalizing the sale to ensure there are no hidden issues with the property.

This broad overview provides a typical sequence for conveyancing in Victoria, although specific details can vary based on the property, the presence of any legal issues, and whether the parties are using a solicitor or managing the conveyance themselves.

Common Pitfalls to Avoid

While the conveyancing process is designed to be straightforward, there are some common pitfalls that buyers and sellers should be aware of. Some of these include:

Failing to review the Contract of Sale and Section 32 Statement carefully: It is important to review these documents carefully and ask questions if there is anything that is unclear or concerning.

Not conducting adequate property searches: Failing to conduct adequate property searches can result in unexpected costs or issues down the line.

Not allowing enough time for the conveyancing process: Conveyancing can take time, and it is important to allow enough time for the process to be completed properly.

Failing to engage a qualified conveyancer: Engaging a qualified conveyancer is essential to ensure that the transaction is legally binding and properly documented.