How it Works
Conveyancing is the process of transferring ownership of the legal title of a property (such as a house or land) from one entity (person or company) to another. Preparing, verifying and lodging a range of legal documents as well as preparing the property for settlement are important parts of conveyancing. Below we explain the critical steps to ensure the ownership of a property is successfully transferred.
The Seller’s legal representative prepares a Contract of Sale so the Real Estate Agent can market the property. The purchaser needs to get legal advice and review this contract, arrange relevant inspections and start making loan arrangements before anything is signed.
The contract is signed by both parties, and may be immediately binding, depending on the circumstances of the sale. The Purchaser may however, have a cooling off period available, or be able to withdraw from the contract under certain conditions, so it is important to speak to your legal representative so that you know the exact terms and conditions written into the contract.
There is a set length of time between the contract becoming binding and the contract being settled or completed. In this time the purchaser has a lot to do including conducting various checks on the property, organising stamp duty & insurance and getting any loan arrangements in order. The seller of the property should be making arrangements with their bank to have any mortgage discharged as well as making plans to move.
Before settlement, adjustments to the purchase price are agreed upon between the parties to cover council and water rates as well as other costs which may be allowed for in the contract.
On the day of settlement everything must be in place. The purchaser’s bank will provide the funds and the seller’s bank the property title and the document/s needed to release any mortgage. Everything is transferred and the Purchaser and then entitled to pick up the keys whereby the property is considered settled.