The Conveyancing Process: What Happens When You Purchase a Property
The conveyancing process (or just “conveyancing”) is the series of checks and steps involved in the legal transfer of a property from one owner to another.
Buying property is often one of the largest and most important transactions people will make in their life. As such it is vital that all steps are performed accurately and correctly. This ensures that property ownership (also known as “property title”) is properly recorded and there are no issues down the track.
The conveyancing process can be handled by a solicitor, however, it is more typically performed nowadays by a conveyancer. A conveyancer is a legal expert who specialises solely in the conveyancing process. Whilst a solicitor will have knowledge in a much wider area of the law, conveyancers have an intimate knowledge of conveyancing and property transfer.
What does a conveyancer do?
As part of the conveyancing process, a conveyancer can perform a range of duties. The specific steps involved depend upon the type of property being transferred, however, there are some steps always taken.
Typical steps taken by your conveyancer can include;
- Examining the contract of sale. A vital and primary step if you are purchasing a property.
- Exchanging the contract of sale. From either the buying or selling side of the property transaction.
- Arranging building and pest inspections. This ensures you are actually purchasing what you think you are purchasing.
- Arranging and examining a strata inspection report. If you are buying a property in a strata scheme, this makes sure there are no nasty hidden surprises.
- Determining any vested interest in the land. Government authorities such as local councils, Transport for NSW or others may have planned development that could impact the property.
- Checking whether swimming pool registration and compliance is required. It is meant to be the seller’s responsibility to deal with compliance. If this is missed, however, the buyer takes on the responsibilities (and potential liabilities) of compliance.
- Discovering any information which may not have been previously disclosed. This can be anything from illegal construction work to boundary disputes.
- Paying the deposit. Your conveyancer can arrange the payment of the deposit to the sellers or real estate agent.
- Payment of stamp duties. Stamp duties are payable to Revenue NSW for property transfers.
- Check for outstanding land tax obligations or other arrears. These should normally be paid by the seller.
- Calculating adjustment for council and water rates. These are usually calculated on a pro-rata basis based upon date of rate payment to date of settlement.
- Overseeing the change of title. This is done through the NSW Land Registry Services.
- Checking everything has been finalised before settlement. A missed step can delay settlement which could potentially incur penalties.
- Attend settlement.
Optional steps taken by conveyancers
- Arranging finance if required. Your conveyancer can help arrange finance, though this is more often done through a lending specialist or mortgage broker.
- Examining mortgage documents. This can happen but is extremely rare.
A conveyancing may find outstanding obligations of the seller or a building report may discover undisclosed repair work is required. Whilst these should be dealt with by the seller, time may not always allow. The important thing is that the purchaser is aware of any issues before settlement and either cancel the contract or negotiate a suitable financial exchange.
How much does a conveyancer cost?
The first cost involved with conveyancing is the legal service fee for the conveyancer or solicitor. Typically, a conveyancer costs less for their legal services than a solicitor. Enquire about our conveyancing service fee.
Whether you are using a conv, the costs can vary considerably. You will normally be charged for disbursements as part of these services, which are variable and depend upon the specific requirements. Potential disbursements may include;
- Title searches. Fees paid to search the property’s title.
- Photocopying. Fairly self-explanatory.
- Registration of the mortgage. Charged when the property is used as the security on finance.
- Registering the title transfer. Fees paid to register the transfer of title from seller to buyer.
- Certificate fees. Payable to obtain documents or certificates, such as council rates, service provider enquiries or strata reports.
In addition to the legal fees and disbursements, there may be other costs involved in your property transaction. These will vary from transaction to transaction, as well as depend upon the range of services the conveyancer is providing. Additional costs may include;
- Pest and building inspections.
- Survey reports.
- Mortgage costs.
- Mortgage insurance.
- Valuation fees.
- Insurances.
- Stamp duty and mortgage duty.
- Strata levies.
- Council and water rates.
As well as these typical conveyancing fees, charges and disbursements don’t forget your moving costs.
Are you buying or selling a property?
GP Legal are Northern Beaches solicitors and property lawyers with an in-house conveyancer. For property transactions, arrange to speak with our in-house conveyancer at GP Legal. If you have any other property law queries, including legal advice on leases, please speak with our property lawyer.
With years of experience in property law and both residential and commercial conveyancing in NSW, GP Legal can assist with your next property deal.