What is conveyancing?
Put simply, conveyancing is the legal process of transferring the title of a property from one person to another.
Why should I use a conveyancer?
Buying or selling property is one of the largest financial transactions of your life. Due to the financial and legal aspects of transferring property, the consequences of making a mistake can be both costly, stressful and heartbreaking. By having a licensed conveyancer take care of your property transfer, their qualifications and experience can help protect your assets. A licensed Conveyancer has an in-depth understanding of the law concerning property transactions, is required by law to carry professional indemnity insurance and fidelity insurance, and unlike certain solicitors that offer conveyancing, can focus solely on property transfer instead of other legal matters.
What is the cooling off period and how does it affect me?
A cooling off period is the right of a purchaser of property to cancel the agreement within 5 business days. It offers some protection to purchasers that may have rushed into a contract to purchase property and can be used to finalise financial arrangements or perform title searches. Cancelling the agreement (or rescinding, as it is known) will cost the purchaser 0.25% of the total purchase price. The cooling off period does not always apply (at auction, for example) and can be waived providing a 66W certificate is signed by a conveyancer who has briefed his or her client with regard to the implications involved of waiving the cooling off period.
What is a disbursement?
A disbursement is one of the expenses incurred during the process of conveyancing which can include pest reports, building reports, title insurance and certificates from local government authorities or local councils etc.
What happens if the purchaser cannot settle on the due date?
The vendor or seller can issue a ‘Notice to Complete’ against the purchaser, which means the purchaser has 14 days (including weekends and public holidays) to settle the matter. If left unsettled, the vendor has the right to terminate the contract and is eligible to receive the purchaser’s deposit and can legally place the property back on the market to sell. The vendor is entitled to charge the purchaser interest for the number of days settlement is delayed, which commences from the due date for settlement. The contract usually stipulates the applicable interest rate.
What happens if the vendor cannot settle on the due date?
The purchaser can issue a ‘Notice to Complete’ against the vendor which means the vendor or seller has 14 days (including weekends and public holidays) to settle the matter. If left unsettled, the purchaser has the right to terminate the contract and is eligible to receive their deposit back. The purchaser may also apply to the Court to have the vendor complete the agreement and hand over possession.
What happens at settlement time?
Settlement is the finalisation of the sale or purchase process. There are usually four parties involved – the buyer and sellers’ conveyancers and the banks for the vendor and purchaser. On settlement, the purchaser’s bank will exchange cheques as per the instructions of the buyer’s conveyancer and in return, receive the Certificate of Title and ‘discharge of mortgage’ (if applicable) from the seller’s bank.
Once the settlement date arrives, and settlement is completed the keys can be handed over to the purchaser via the agent. The deposit is released (from trust) to the seller. At this stage, the buyer’s bank registers the change of title and mortgage, and notifies authorities (such as the water company) of the change.
Who notifies the authorities that I have purchased a property?
When your transfer papers are lodged for registration after settlement, the council and water authority are automatically notified of the new purchase. Other providers, however, will need to be notified.