Conveyancing refers to the process of transferring property from one owner to another. It is a legal necessity for any property transactions involving a vendor and a purchaser.
The property conveyancing process involves several stages. These include the drafting of legal contracts, property searches and final settlement.
Accurate documentation is absolutely essential for the legal transfer of property. Providing inaccurate or incomplete information could impact the success of the property transfer. This is a result neither vendor nor purchaser wants.
Conveyancing is a vital process for all parties involved in a property transaction. Effective conveyancing helps to protect purchasers’ rights and also supports vendors to meet their legal obligations. Most importantly it’s the method by which the legal land title is transferred from the vendor (or the seller) to the purchaser (or the buyer).
It’s important to note that each state and territory has its own regulations when it comes to property conveyancing. So for those who are selling and/or buying property in NSW, they must adhere to the property law in this state.
NSW Land Registry Services (NSW LRS) plays a key role in this process. It officially records the ownership transfer on the relevant land register. This is typically the Torrens Title Register. This is the main register for land held in NSW under the Real Property Act 1900.
In order to understand the property conveyancing process in NSW, let’s break it down into stages.
ð Stage 1: Initial legal work
Once the purchaser has made an offer, the conveyancers will begin the legal process for the sale and purchase. This includes:
ð Stage 2: Exchange of contracts
Once the contracts have been exchanged there is usually a five-business-day cooling-off period. During this time, the buyer can back out of the sale, though it’s usually at a cost, generally 0.25% of the purchase price. In addition, during this time deposits and settlement terms are established and risks and title checks are conducted.
Sometimes you may be asked to waive a cooling-off period. In that case, the solicitor must provide a section 66W certificate.
The conclusion of this stage marks the legal completion of the sale process.
ð Stage 3: Pre-settlement procedures
Any last checks and tweaks happen during the pre-settlement stage. These can include any final inspections and adjustments to the purchase price as a result of those inspections or other information. Your solicitor will also make sure that you are complying with all the contract conditions you need prior to settlement.
ð Stage 4: Settlement
This is the final stage of the conveyancing process. It’s during this stage that the purchaser becomes the legal owner of the property. The settlement period involves:
And now the land title has officially passed!
Property conveyancers are experts in legally transferring property ownership and guiding purchasers and vendors through the process. And they undertake a lot of the tasks that make this process smooth for you.
Tasks completed by the vendor’s property conveyancer include:
Tasks completed by the purchaser’s property conveyancer include:
While there are no legal obligations to engage a property conveyancer, having one sure does help!
Property conveyancers can act on the behalf of either the purchaser or vendor and their role is to ensure all the parties adhere to legal regulations. Because of that, conveyancers minimise the inherent risk of the transaction. Not only will they help protect your rights, but they will also ensure you’re meeting your responsibilities.
There are many easy mistakes DIYers can make in the conveyancing process. These include:
The impact of missteps in conveyancing has the potential to cause significant delays, financial loss or even a failed transaction. And if you breach the contract as a purchaser you will lose your deposit and be sued for damages. These can be significant and include any difference in any resale within a 12-month period.
Having a trusted conveyancer on your team will help you to avoid these common pitfalls and ensure that you’re meeting all your obligations under the contract. Find out more about why you need a conveyancer on the blog.
As property law professionals, we tailor our expert conveyancing services to your individual needs. We can spot any inaccuracies, flag potential issues and navigate legal complexities with professional guidance. Plus we’ll make the process smoother, easier and more stress free from start to finish!
Property transactions can be intricate and demanding. For first-time purchasers and vendors –but also for experienced ones – the process can sometimes feel daunting.
For both sides of the transaction, understanding property conveyancing is key to the smooth (and legal!) transition of property.
But what exactly is property conveyancing, and what is the correct legal process here in New South Wales? Let’s take a closer look at each stage and why understanding the process is crucial for both purchasers and vendors.
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