Conveyancing is the legal process of buying or selling property including legally transferring title for the property from the vendor to the purchaser. A licenced conveyancer or solicitor is a professional who understands the laws surrounding property purchases and sales. There are three stages to the conveyancing process, namely pre-contract, exchange and settlement.
At the pre-contractual stage, the vendors solicitor will prepare the Contract for Sale. The Contract includes important information and documentation in relation to the property including the certificate of title, any easements or restrictions that affect the property, any Council requirements that impose conditions or restrictions on development and any special conditions that impose obligations on the parties. Once the purchaser’s solicitor has conducted a review of the contract, and the purchaser has completed their pre-purchase enquiries, both parties will need to sign the contract for exchange.
Exchange occurs when both the vendor and purchaser have signed a counterpart of the Contract, and the solicitors acting for the parties confirm the two contracts are identical. Contracts are then dated and swapped which means contracts have exchanged. At this point, the contract is legally binding and each party must comply with the obligations of the contract. If any party is in breach of the contract, they may face consequences.
Settlement is the final step in the conveyancing process where the purchaser settles the remaining finances of the purchase and takes possession of the property. Before settlement, the solicitors prepare settlement figures including the balance of the purchase price, and an adjustment for council and water rates. The purchaser’s solicitor will liaise with the mortgage broker or bank to ensure the purchaser’s finance is ready for the settlement date, and advise the purchaser to conduct a pre-settlement inspection of the property to ensure that the vendor has vacated the property and removed all of their possessions, except for the improvements and inclusions provided in the Contract. The vendors solicitor will ensure that any existing mortgage is discharged and there are sufficient monies on settlement to payout the remaining mortgage. The purchaser’s solicitor will undertake a final title search to ensure there have been no dealings lodged against the title of the property that may affect settlement proceeding. Finally, the transfer will be registered which passes title of the property from the vendor to the purchaser.
Conveyancing is a complicated process which is made easy by engaging the professionals at Baker Love Lawyers, please contact us today.