If you are planning to buy or sell a property, you will need to understand the process of conveyancing. Conveyancing refers to the legal procedure of transferring property ownership from one party to another. It encompasses various stages, such as conducting property searches, negotiating contracts, and settling fees and taxes. This post will give you an overview of the conveyancing process, the key players involved, and some tips to make the process smoother.
Step 1: Engaging a Conveyancer
The first step in the conveyancing process is to engage a conveyancer. A conveyancer is a licensed professional who specialises in property transactions. They will handle the legal aspects of the transaction and ensure that the transfer of ownership is done correctly. You can engage a conveyancer directly or through your real estate agent. It is important to choose a qualified conveyancer whom you can trust to represent your interests.
Step 2: Contract Negotiation
Once you have engaged a conveyancer, they will prepare the contract of sale. This is a legally binding document that outlines the terms and conditions of the property sale. The contract will include details such as the purchase price, settlement date and any special conditions. Your conveyancer will help you negotiate with the other party to agree on the terms of the contract.
Step 3: Property Searches
Your conveyancer will conduct a series of property searches to ensure that there are no issues that could affect the sale or purchase. These searches will include title searches, which check for any outstanding debts or caveats on the property, and council searches, which check for any planning or building restrictions. Your conveyancer will also check for any environmental or heritage issues that may affect the property.
Step 4: Payment of Fees and Taxes
Once all the searches have been completed and the contracts have been signed, it is time to pay the fees and taxes associated with the property transaction. This will include stamp duty, which is a tax levied by the government on the sale of property, and conveyancing fees, which are the fees charged by the conveyancer for their services. Your conveyancer will prepare the necessary paperwork and ensure that all fees and taxes are paid on time.
Step 5: Settlement
Settlement is the final stage of the conveyancing process. This is when the ownership of the property is officially transferred from the seller to the buyer. Your conveyancer will arrange a settlement on your behalf and ensure that all parties receive the necessary paperwork and funds. Once settlement is complete, you can move into your new property or receive the funds from the sale.