First….What is conveyancing?
Complete ownership of a property, whether it’s a house or an undeveloped lot, is only realised when the legal title of that property is transferred from the previous owner to the buyer. This process of transferring title is referred to as conveyancing. Its primary objective is to ensure that the buyer not only secures the title to the land but also all the associated rights. Additionally, it is designed to make certain that the buyer is informed about any restrictions before finalizing the purchase.
So, what happens during the conveyancing process?
Making an Offer:
Once you’ve identified the property that you wish to purchase, it’s time to submit an offer to the owner or their agent. You’ll be presented with a contract that must be carefully reviewed to fully comprehend its terms and conditions. Like most contracts, real estate agreements contain terminology that is too risky to interpret without adequate legal knowledge. This is why it’s crucial to engage a Licensed Conveyancer to review prior to singing a a contract. The signed contract, along with your offer, will be forwarded to the seller.
Cooling Off Period: After the seller receives the signed contract, a cooling off period of three clear business days applies to private sales of residential and small rural properties. The cooling-off period gives you time to consider the offer. (It begins from the date you sign the contract, not the dated the seller signs it). If the vendor has accepted the offer when the purchaser cools off during the 2 business days, the purchaser has to pay the vendor .2% of the purchase price.
The Search: Once conveyancing is initiated, we will conduct a comprehensive examination of the property being purchased. This involves checking for encumbrances and restrictions on the property, ensuring compliance with any special conditions specified in the contract, coordinating the payment of fees and government duties, preparing all legal documents, arranging for the final settlement, and more. This thorough process typically takes 4 to 6 weeks, constituting a significant portion of the conveyancing timeline.
Paying the Deposit: If you decide to proceed with the purchase and the seller accepts your offer, you can then submit the deposit within the timeframe specified in the contract. Timely payment of the deposit is crucial to avoid potential legal actions by the seller.
Fulfilling Obligations: As the buyer, several responsibilities must be fulfilled during the conveyancing process. These include securing all necessary insurance before the property is transferred into your possession, obtaining appropriate financing for the property within the specified timeframe, and settling your transfer duty.
Settlement: After the meticulous inspection and search of the property, the time comes to finalise all aspects of the transaction and transfer the title to the land to you, free of encumbrances.
The process of purchasing a new home can be lengthy and intricate. Contact us today as our team can provide you with invaluable assistance in walking you through the process and streamlining numerous steps to prevent overwhelm.