What you need to know about Conveyancing?

Conveyancing is the legal process of transferring the ownership of a property from one person to another. If you want to buy or sell a home, land, or investment property you will have to sign a contract. The legal work involved in preparing the sales contract, mortgage, and other related documents, is called conveyancing.

Both a conveyancer and a solicitor can help you with a straightforward property purchase or sale. But only a solicitor can help you with more complex legal issues that sometimes arise during the process, and to provide advice.

What are the key dates to be aware of in the conveyancing process?

There are several key dates, including:

• The contract date – the date when all parties have signed the contract and agreed to its terms. Other key dates may be expressed with reference to this date e.g. “45 days after the contract date”.
• The end of the “cooling off period” – this is the period during which buyer can terminate the contract without needing to rely on a term of the contract, and with limited potential for the seller to charge a penalty.
• The finance approval date – the date by which a buyer must advise the seller that finance approval has been obtained. In some states, finance approvals are often arranged before the contract is signed and therefore this date may not be applicable.
• The building and pest inspection date – the date by which a buyer must indicate to the seller their satisfaction or otherwise with the inspections they have obtained. You should get a licensed building inspector to perform the inspection as quickly as possible to meet this date. As with the finance condition, in some states this is finalised before the contract is signed and therefore this date may not be applicable.
• The settlement date – the date on which settlement of the transaction is scheduled to occur.

What are settlement price adjustments?

The settlement process almost always spans an accounting period, during which authorities and organisations charge fees to the owners of the property – such as local government rates, state government levies or taxes (i.e. land tax), and body corporate or strata fees for units.

Part of the conveyancing process involves making relevant adjustments in the purchase price to account for each party's share of these fees. Other adjustments that are sometimes made include rental adjustments and fees for the release of existing mortgages.

What happens if either party cannot settle on the due date?

If the seller (person selling the property) cannot settle on the due date, the purchaser can issue a ‘Notice to Complete’ which means the sellor has 14 days (including weekends and public holidays) to settle the matter. If left unsettled, the buyer has the right to terminate the contract and is eligible to receive their deposit back. The buyer may also apply to the Court to have the seller complete the agreement and hand over possession.

If the buyer cannot settle on time, the seller is entitled to charge the buyer interest for the number of days settlement is delayed. The contract usually stipulates the applicable interest rate. In this case, when the ‘Notice to Complete’ is issued, the seller may terminate the contract and keep the deposit and can legally place the property back on the market to sell.

If you are looking to buy or sell your property and would like to find out more about your rights and options, Straits Lawyers are here to help. Simply send us an email at info@straitslawyers.com or give us a call on 8410 9069 to arrange an appointment for an online interview.

Alternatively, if you would like to conveyance a property, Straits Lawyers are now offering online services at https://straits-lawyers.square.site/product/conveyancing-/2?cs=true.

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.