What is Conveyancing?
Let us have a look at what is conveyancing before moving to the essential details of why you need a conveyancer. Conveyancers deal with buying or selling real estate and cover the legal process of transferring the ownership of a property from one person to another.
Conveyancing services involve the preparation of contract, execution and lodgement of various legal documents for a smooth legal buying or selling.
In shorter terms, a conveyancer will manage the settlement process of selling or buying real estate on your behalf.
When do I need a Conveyancer?
Conveyancers will give you advice on ownership and formulate legal documentation for the sale or purchase of real estate. Buying or selling properties involves lots of paperwork and it is highly recommended to hire a licensed conveyancer to understand the legal jargon involved in the process.
A conveyancer will do all the work for you in the process from the beginning to the end. You will need a conveyancer whether you are selling or buying a property.
What’s involved in the conveyancing process?
There are two sides to conveyancing – conveyancing for selling and conveyancing for buying real estate. While the general conveyancing process remains the same, the procedures might be different depending on whether you are a vendor or a purchaser. The job of a conveyancer is to make sure that the transfer of the ownership of real estate is legal despite of which side the conveyancer is representing.
The main steps involved in conveyancing for sale are:
- Instructions received from the client
- Investigation of the information provided
- Preparing the Contract of Sale & the Section 32 statement
- Prepare for the sale settlement
Instructions received from the client
A conveyancer will first collect the information from the client that includes all the required legal documents required for the sale.
Investigation of the information provided:
A conveyancer will investigate whether the information provided is correct and all the required documents are ready to go ahead with the process.
Preparing the Contract of Sale & the Section 32 statement:
A conveyancer will prepare the Contract of Sale and Section 32, also known as the vendor statement. The Contract of Sale & Section 32 is the most important document in transferring the ownership of property, which if not prepared properly, can lead to disputes between vendors and purchasers and can result in the documents being described as defective.
The Section 32 Statement will contain information on the property like council rates and land tax, only to name a few, as is set out in Section 32 of the Sale of Land Act 1962 and must be provided to the buyer before the property is sold.
Prepare for the sale settlement:
Once the executed Contract of Sale is received the Conveyancer will prepare for the sale settlement. This is done by ensuring all contractual conditions are met and liaising with parties involved in the transaction where required. One of many parties would be the discharging bank if applicable. The bank will provide a loan payout figure and then the conveyancer will prepare adjustments like council rates, water rates, land tax and body corporate fees if any accordingly. The conveyancer will combine all figures and ensure that all documentations are in order, prior to completing the Settlement.
The main steps involved in conveyancing for buying are:
- Interviewing the client
- Review prospective contract
- Prepare for the purchase settlement
- Give good news to clients about the settlement
Interviewing the client:
The first step of the conveyancer in the purchasing side will be to interview the client to understand their requirement and their position to buy a property.
Review prospective contract:
A conveyancer will receive the Contract of Sale from the vendor
and other initial documents for compliance purposes. A conveyancer will review the sale contract and other legal documents to ensure that everything is alright.
Prepare for the purchase settlement:
In receipt of the executed Contract of Sale, the file will be prepared according to the contractual conditions. The purchaser’s conveyancer must prepare all the required documents to proceed to settlement. These documents and the way it’s prepared may differ depending on whether the settlement will be happening electronically via PEXA or via paper. A conveyancer will prepare adjustments like council rates, water rates, land tax and body corporate fees if any and liaise with bank for the loan amount to find out if there is any shortfall in the amount to be paid by the purchaser.
Give good news to clients about the settlement.
The last step is to finally give the good news to the clients. Alongside this, all documentation relevant to the client’s information for the future is sent in a final letter format.
If you would like to learn more about the conveyancing process in Victoria, our minimalist guide goes in-depth about the topic.
What are Conveyancing services & fees?
Conveyancing services are offered by:
- A licensed conveyancer
- And a licenced solicitor or lawyer
The fee of a conveyancer can range from $500 up to $3,000 depending on the level of service you require. Fees charged by a solicitor are generally more than a conveyancer.
The fees will cover a collection of services including the creation of a sales contract, examination of the contract, searches for property or land titles, and investigation of any plans of the government for the property or land.
Why do I need a Conveyancer?
It is wise to have an experienced and legally trained conveyancer for buyers to review the contract received from the other party. Getting the Contract of Sale reviewed by a conveyancer is highly recommended whether you are a first home buyer or you are purchasing investment properties.
It is equally important to hire a legally trained conveyancer by vendors to make the legal transfer of ownership of properties and avoid conflicts with purchasers in the future. A conveyancer can identify any important elements that may be present or missing from the Contract of Sale.
How to find a good conveyancer?
If you are looking for a good local conveyancer in Point Cook, then look no further. We at Conveyancing Hub are licenced conveyancers and are the best in Western Victoria. You will be in good hands when you entrust us in your property buying or selling process. We will guide you through every point in the process at the best price and ensure that you stay prepared and guarded. We will make sure that the settlement is smooth and hassle-free.
Alternatively, you may also visit our website https://www.credithub.com.au/
For any inquiries on conveyancing, get in touch with our friendly team through our Contact Us page.
Written by: Nitishikha Gogoi Bhuyan
Edited by Shaniya Xuereb