Property conveyancing is a very common term used in property or land law. It basically means to transfer the legacy title of a property from person to another. It is of vital importance and without it (if it’s not done properly) a person can potentially become property less or landless.
You need to know that just living in a house or occupying any property does not make you the legal owner of that property. The title deeds need to belong to you which means that the registry that keeps the record of who owns a property needs to have your name on it.
Who carries out this process?
There are plenty of options available in New South Wales for property conveyancing. There are specialized firms and companies who have licensed conveyancers on their teams who carry out the task.
There are also solicitors and law firms who specialize in this area.
It is of grave importance to go to a person experienced in this manner especially a lawyer and a reputed law firm in order to not get conned.
What happens during the process of conveyancing?
There are several steps that need to be completed in order for the legal title of a land to be transferred to another.
It would be better to look at these steps in some detail.
Contract of Sales
The conveyancing process in New South Wales differs from the one in Queensland. The real estate agent can not draft the contract for sale in New South Wales, it has to be the solicitor.
The conveyancing process in New South Wales is stripped from the building inspection and finance clause. This is something the buyer should be aware of.
Exchanging the contract of sales
When the terms of sales have been settled and both the parties are happy with the contracts, they will sign it.
The exchange of the signed contracts between both the parties will signify a deal and the contracts become binding on both the parties.
Cooling off period
There is a 5 day period that is known as the cooling off period after the contract of sales have been exchanged. As the name suggests it is for the parties to rethink, take more legal advice and reconsider basically. After the cooling off period the contract is unconditional.
After the exchange of contracts and the relevant arrangements with the respective banks have been made, the completion date arrives.
That usually is after 42 days of the exchange of the contracts.
What is the process for residential property conveyancing?
The process for commercial and residential property differs in New South Wales.
The documents that are usually required for residential property are stuff like title search, council certificate, sewerage diagrams, the property plan etc.
A sale contract is prepared that includes these things and this is before the property can be put up for sale.
What happens if buyer’s application for loan is refused?
After exchange of the contract for sale and after the cooling off period is over, if the buyer’s application for loan is not accepted by the bank (most buyers apply for finance to buy a property) then the seller can keep the amount which is usually 10% of purchase price that was given at the time of signing of contracts.
This is a legal right.
If the contract is terminated during the cooling off period?
If that is the case then the seller gets to keep 0.25% of the purchase price as a termination fee.
This information is of significant importance for the sellers and buyers to know how important the cooling off period is for of the parties.
If the original certificate of title deed, which signifies the owner of the property, is with the seller then it needs to be transferred in the name of buyer.
When do you have to vacate the property?
Unless the property is being occupied by a tenant which in that case will be vacated by the tenant at the end of his agreement. The owner will change and he will be under the tenancy of the new owner though.
If that is not the situation then you are required to vacate the property at least a day before the settlement takes place.
Is it costly?
The process can be somewhat costly. The costs usually include the disbursement fee that are for the attainment of legal certificates from the government. The cost of solicitors for completing the process and other minor costs.
Tips for the seller
You need to be very careful when going through this process. Make sure you hire the right people; your documents are in place. As a seller you need to be very vigilant.
Make sure you are selling your property at the right price and an estate agent does not undercut the deal. This is a very common occurrence and sometimes estate agents tend to do that in order to earn their commission.
Know your rights of the percentages you can keep if the deal falls through.
Tips for the buyer
On the same hand, as a buyer you need to be equally if not more vigilant. Ensure the certificates are all legitimate, your solicitors competent and you are getting the right price for the property.
In order to determine if you are getting the right price, you need to check other properties of the same size and condition in that area. Make sure you do not let the estate agent lure you and check the important parts like the foundation of the property etc.
You also need to objectively look at the title deed record and if there are any loopholes with the transfer chain of the property.
Property conveyancing is one of the most important aspect of land law as discussed previously. It is one of the most important and qualifies as one of the biggest transactions of some people’s life.
It needs to be done by professionals to avoid any scams or any unnecessary or unpleasant occurrences.