What is conveyancing?
Conveyancing is the process of conveying the ownership of a property from one to another. To change the ownership of property a Transfer is registered with NSW Land Registry Services who are responsible for updating the title of the property to reflect the new owner. In most cases, this takes place electronically via PEXA.
What is PEXA?
PEXA stands for Property Exchange Australia. This is an electronic lodgement network which facilitates electronic property transactions. The majority of property transactions now take place on PEXA unless an exception applies.
When do I receive the certificate of title?
From 11 October 2021 the Real Property Amendment (Certificates of Title) Act 2021 (NSW) made several changes to the land titles system. One of the changes made was to cancel Certificates of Title which are no longer issued to new property owners. Instead, you may wish for your Solicitor to conduct a title search following settlement to show your ownership of the property.
Do I get a cooling off period?
If you are purchasing an existing residential property, you are entitled to a five business day cooling off period unless a Section 66W Certificate is provided, you buy the property at auction or on the same day the property was passed in at auction, or if you exercise an option to purchase the property (other than an option void under Section 66ZG of the Conveyancing Act 1919 (NSW)). If you exercise your right to cool off by rescinding the Contract, 0.25% of the purchase price will be forfeited to the vendor.
What is a section 66W certificate?
A Section 66W Certificate is a certificate provided by a purchaser’s Solicitor or licensed conveyancer in accordance with Section 66W of the Conveyancing Act 1919 (NSW). The effect of this certificate is to waive the cooling off period under the Contract.
What happens if I buy property at auction?
If you are successful at auction, you will be asked to sign the Contract and arrange for the deposit to be paid. You will not be entitled to a cooling off period. When attending an auction, it is important to have a Solicitor review the Contract, undertake relevant inspections, and obtain finance approval prior to the auction.
How much is the deposit?
The deposit payable under the Contract is generally 10% of the purchase price. In some cases, the vendor may agree to accept a lesser amount on exchange, for example 5%. This is referred to as paying the deposit by instalments, as you will still be liable to pay the balance of the 10% deposit on settlement or if you default under the Contract.
CONTACT US
Recent Articles
What happens to employees when you buy a business?
Changes to no grounds evictions in residential tenancies: What this means for tenants, landlords and purchasers
