What is Conveyancing?

Conveyancing refers to the process of transferring legal ownership in property. When you buy or sell property, signing the contract does not actually result in legal ownership being transferred. The contract only reflects the intention of both parties to transact to transfer the property. This article aims to shed some light on conveyancing.

Why is conveyancing necessary?

Conveyancing is necessary because of the nature of real estate. Unlike many other assets, real estate cannot be misappropriated by moving or hiding it. It is usually also very valuable. This makes real property a great security interest. This and its extremely valuable nature mean it is important to determine and clearly record who owns a particular piece of real estate.

For most of your assets or possessions, you can demonstrate that you own them simply by the fact that you have it in your possession, as well as some form of documentation showing how you acquired it, such as a receipt or invoice. Given the valuable nature of real estate though, it is necessary to have a formal system to demonstrate your legal ownership. Without a formal system, it might be much easier for a fraudster to claim ownership of your property or for confusion as to who owns a property to arise. In South Australia, this formal system is reflected in the Torrens Title System.

The Torrens Title System is a register designed to provide certainty of title to land. Registering your interest as an owner makes it clear that you are the owner of that particular property. However, because of the certainty the Torrens registration system provides, there are measures in place to make it difficult to wrongly register as the owner of a property.

A primary purpose of conveyancing is to navigate the legal measures in place so that the change in ownership of a property may be successfully registered. Conveyancing also aims to ensure all other formalities are met, such as ensuring rates and taxes on the property are paid by the correct party at the correct time.

After you have signed your contract of sale or purchase, you will need a conveyancer to ensure that the transaction is finalised (settled) by the agreed settlement date. At Straits Lawyers, we can help you in your conveyancing matters and provide advice on any concerns you may have. Simply email us at info@straitslawyers.com or call at 08 8410 9069 to arrange an appointment.

Please note that this article does not constitute legal advice and Straits Lawyers will not be legally responsible for any actions you take based on this article.