General Overview of Conveyancing Process

This blog provides a general overview on conveyancing.

Exchange of contracts

This involves the making of the contracts between the two parties. There are two identical formats, each party to the transaction signs one and the contracts are then exchanged. The other party in exchange for a deposit that is paid on time holds each contract. The contracts are dated on the day of the exchange. It is to ensure that each party is bound by the terms of the contract and conditions of the sale.

Deposit Bond

The conveyancers, Adelaide develops the deposit bonds. The purchaser does not have a full ten percent deposit. Either vendors can decide to accept deposit bonds. This guarantees the payment of the deposit to the vendor if the purchase defaults. The bond is used as a substitute to the cash deposits especially when the purchaser doesn’t have the necessary amount to pay as deposit. This is used when the buyer is selling the property and all the assets are tied in that property. They currently lack the cash to put down in the property purchase. One of the cost effective methods, it can be used if the vendor accepts the bond which will become common practice with time.

Cooling off period

All the buyers of the residential land usually have a statutory warning period of five working days after the exchange of contracts. This is the cooling off period which if forfeited, they have to pay the vendor 0.25 percent of the sale price.

Stamp Duty

The amount of stamp duty is calculated based on the sale price of the property. The higher the price the higher the duty that needs to be paid. It is paid after the contracts are entered and before the final settlement of the transaction.

These are some of the contractual papers that conveyancers prepare in relation to the buying and selling of property.

Using the Aid of Conveyancers to Buy Real Estate

Conveyancing is the legal procedure that is involved in the transfer of ownership of the property. This procedure is meant to ensure the complete transfer of the property rights from the owner to the buyer, or the new owner. To achieve fair transfer of the legal property rights, the seller and the buyer appoint their own conveyancing solicitor. All around the world, there are various firms that work for this purpose. Many of them provide cheap conveyancing options.

This is not a quick process. This may take one or more months. This process involves more than one party, so the negotiation between the parties to reach the common terms may take a longer time than expected. In this process the validity and the authenticity is much more important than the time.

The professional conveyancers achieve conveyancing. He is a practicing property solicitor who has the license of his job. A conveyancer may not be necessarily a lawyer; any legally authorized person is certified to solve the legal matters of conveyancing. Many firms that deal with all these matters have conveyancers that supervise the property matters.

The legal process of conveyancing starts with the signing of the contract. At the time of the contract, a deposit of about 10 percent of the purchase price is made. In the contract, a buyer presents a signed contract of offers to the seller. The seller checks his feasibility and, through his solicitor, presents the contract with some amendments, as the counter offer. A five days period is given to the buyer to go through the contract. After checking the feasibility, he may accept or reject the report. In case of rejection, or back out of the transaction, the buyer is charged 0.25 percent as penalty.

During the period of decision, and the settlement of the deal, complete inspection, assessment, and other enquiries are done. The buyer enquires about the location, and other legal aspects of the property before finalising the terms of the mortgage with the lender. This is the opportunity for the buyer to go through all the pros, and cons of the deal, and settle them with the lender.

The conveyancing process is completed with the signing of the transfer document. The solicitor of the buyer prepares this final document. The document is then sent to the solicitor of the seller who kept it with him until the final settlement.

Using the Help of Licensed Conveyancer for Buying and Selling of Property

A conveyancer is your personal legal representative and they should be able to answer your questions about the process leading up to settlement. When buying or selling property, it is necessary for a lot of paperwork to be completed and all agreed conditions fulfilled in the contract of the sale. Such work is generally completed by a conveyancer and these real estate professionals play an important role in the sale of a property.

Licensed conveyancers are specialists in property law are required to have specific qualifications. This ensures that they are aware of the legal responsibilities and obligations associated with the transfer or property.

Although it is not against the law to do your own conveyancing work, this is not recommended due to the technical nature of these tasks. Buying or selling a home is an important financial transaction it is recommended that you engage the services of a properly qualified professional to assist you through the process and ensure that no nasty surprises ruin the exciting process of buying and selling real estate.

Tasks that conveyancers complete for the purchaser or seller include:

– Completing and lodging documents with the Department of Land Services to ensure that the ownership transfer occurs smoothly

– Searching the certificate of title

– Searching government departments and local authorities for anything that may affect the property such as encumbrances or caveats

– Making necessary enquiries about zoning, titles and rates (council and water)

– Adjusting rates and taxes on your behalf

– Ensuring that all special conditions in the contract are fulfilled before settlement takes place

– Requesting funds to proceed to settlement by liaising with financial institution

– Preparing the settlement statement

– Attending settlement on your behalf

During the process or sale of purchase your conveyancer should protect your interests, be your advocate, keep you informed of the process at every step and ensure you can exercise your rights and meet your responsibilities. A conveyancer is your personal legal representative and they should be able to answer your questions about the process leading up to settlement.

Conveyancing Documents to Sell a Property

Conveyancing is the process of transferring the ownership of property from one person to another.

Licensed conveyancers in Adelaide are specialists in property law and are required to have specific qualifications. This ensures that they are aware of the legal responsibilities and obligations associated with the transfer of property.

The paperwork and processes involved in selling a property are extremely complex and Adcock strongly recommends that you engage the services of a properly qualified, licensed conveyancer to undertake your conveyancing work following execution of a contract of sale. Your conveyancer will:

• complete and lodge all relevant documents with the Department of Land Services
• search the certificate of title
• search government departments and local authorities for anything that may affect the property such as encumbrances or caveats
• make necessary enquiries about zoning, titles and rates (council and water)
• adjust rates and taxes
• liaise with the purchaser’s conveyancer regarding settlement
• ensure that all special conditions in the contract are fulfilled before settlement takes place
• liaise with financial institutions regarding funds required to proceed to settlement
• prepare the settlement statement
• attend settlement on your behalf

If you have any queries concerning the conveyancing process, contact your conveyancer or, talk to your real estate agent.

Although both the vendor and the purchaser must go through the conveyancing process, the legal obligations will be slightly different on each side. If you’re selling a property, it’s worth taking a closer look at the conveyancing process and what is required, so that you can meet all legal and financial obligations of the transaction.

Most sellers will choose to work with either a professional conveyancer or solicitor to help complete the conveyancing process. This ensures that you will have access to a professional’s level of expertise. A professional conveyancer will know the laws that pertain to your particular state or territory, for example. It’s also helpful to consult with your real estate agent throughout the selling process, leading up to conveyancing.  The vendor is responsible for taking care of several obligations as part of the conveyancing process.

Does Conveyancing Cost More?

Whether you’re buying or selling property, you can choose from an array of conveyancers or solicitors to help you with the conveyancing aspect of this process. Whether a solicitor or conveyancer is right for you will depend on several factors, including your financial situation and the complexity of your transaction. In general, terms, conveyancers are usually cheaper than solicitors are. This is because solicitors can provide more specialized knowledge due to their legal background, while conveyancers will only be able to provide advice directly related to conveyancing.

Because of the difference in the services provided, the fees charged by conveyancers in Adelaide and solicitors will vary. You must also factor in the costs of a real estate agent, if using one for your transaction. Ultimately, the choice of whether to use a solicitor or conveyancer will boil down to budget and personal preference.

If the property in question is a first home and the buyer is working within a tight budget, they will usually work with a conveyancer rather than a solicitor. However, if the property is seen as an upgrade and is priced at a higher level, then there will be more risk associated with the sale and a solicitor’s services may be needed.

Why Solicitors Cost More

Some cases may also be more complicated and could benefit from the use of a solicitor. If you are selling a property which is part of a larger estate, for example, the solicitor would be able to offer you advice on both conveyancing and estate legal issues. They can also assist with tax implications in some cases, and refer you to accountants. For this wider breadth of knowledge, a solicitor’s fee will generally be higher.

A solicitor may also be used because they hold the original certificate of title. This makes it easier to simply work with the solicitor rather than go through the process of transferring the title to a conveyancer. Solicitors typically hold onto these important documents and have secure, steel safes with which to house them. Conveyancers usually don’t hold these important documents for their clients, and may not have secure storage on the premises. For this reason, clients may prefer to work with the solicitor holding the original title rather than run the risk of losing this certificate in a less secure conveyancing atmosphere.