When buying a new property, you will go through conveyancing; a legal process that involves a transfer of a property ownership from the seller to the buyer. The process begins when both parties have agreed to the property’s offer. Understanding the conveyancing process is imperative as it helps ensure fewer surprises along the way for both parties.
Who does the conveyancing?
You will need to hire a property attorney, a solicitor or an experienced licensed conveyancer to do conveyancing for you, but it’s still possible, although difficult, to do it yourself so long as you have no intention of taking a mortgage. It would be better if you hire an experienced solicitor to ensure that the process goes as smooth as possible.
You may also consider hiring experts from Conveyancing Melbourne CBD.
Understanding the conveyancing process in details
Every property transaction is unique and usually, presents a distinct set of challenges. But generally, the conveyance process follows three broad stages; before the contract, before completions and lastly after completion.
First, your solicitor or lawyer will be given conveyance instruction with a signed contract of purchase or terms of engagement, mortgage instructions if any and any other necessary document. Once they receive these documents, they will verify every document; investigate whether are any mortgages remaining, or outstanding taxes, and other properties charges that might be due.
You will be expected to go through the standard forms and raise any concerns if any. You may need to do the due diligence yourself since your solicitor may not be in a position to investigate every detail by himself. For instance, you can investigate the tenure of the home and the exact situation of your new home.
Once the due diligence is done, you and the seller will agree on the date and time to exchange contracts after signing them, and you will pay part of the deposit or full deposit. It’s the work of the solicitor to do the exchange to ensure that everything is in order, and if there are any concerns, they will be raised at this point.
Once you have exchanged contracts, you are legally bound to follow the process through. If you do not follow through the process at this stage, you will lose the deposit, and if you had paid less deposit than agreed on the contract, you would owe the seller.
The last stage is the completion, where all document will be reviewed again by your solicitor or your lawyer and pre-registration title search is performed. If everything is in order, post registration is done, and all the proceeds are paid to the seller and keys to the property exchanged.
In most cases, you will receive legal documents about 20 days after completion, but before then, your lawyer will tie up some loose ends, like paying stamp duty land tax and sending the legal documents to the land registry.
If you are buying or selling a property, understanding the conveyancing process is very important, but still, it’s good to note that the above process is for ordinary property transfers. For a deceased estate or divorce transfers, the process is a little bit broad that’s why it’s important to hire an experienced property lawyer to help throughout the process.