What is conveyancing and why you need it?
When buying a property, whether purchasing a rural, commercial, residential or investment property, a variety of legal steps need to be completed. This is the conveyancing process that ensures the correct transfer of property title between different parties. A conveyancer or solicitor typically completes these steps, however it is possible to do DIY conveyancing, though not recommended.
What is a conveyancer?
A conveyancer is a legal professional who specialises in property transactions. They are involved with the preparation of sales contracts, mortgage and other documentation related to the sale and transfer of property.
To legally operate in NSW conveyancing professionals must be licensed with NSW Fair Trading. Most will hold an unrestricted license permitting them to work with the full range of rural, commercial and residential properties. Additionally, licensed conveyancers are required to hold professional indemnity insurance. Should a licensed conveyancer make a mistake in their work the professional indemnity insurance protects the client from financial loss.
Our GP Legal conveyancer is fully licensed and insured and ready to assist with your property transaction. Enquire now if you are selling or purchasing property in NSW.
If you are planning on using another conveyancer, you can check if they are licensed in NSW.
Unlike a Notary Public or Justice of the Peace, a conveyancer does not necessarily need to meet their clients face-to-face. Much of the process can happen online and the digital transfer of required documentation is standard. It is recommended, however, that you contract a conveyancer in the state or territory that the property is in. This is jointly for the reasons of licensing as noted above, plus differences in interstate conveyancing laws as outlined below.
What is the difference: conveyancer vs solicitor?
Both conveyancers and solicitors have the ability to prepare documentation and offer legal advice regarding the purchase or sale of property. Whilst conveyancers and not lawyers, they are specialised legal professionals.
Solicitors will be able to offer advice across a wide range of legal matters beyond the scope of a property sale. This can be beneficial should there be highly complex or additional matters to be discussed.
On the other hand, as a conveyancer specialises in only property transactions, they are often more efficient. They do this work all the time and know the ins, outs and typical hurdles of the process. Additionally, conveyancing usually has a more moderate fee structure than solicitors. For more information read our article comparing conveyancers and property lawyers.
Whilst it is possible to do DIY conveyancing, it is not recommended. First of all, you will need to have a good first-hand knowledge of the conveyancing process. You’ll also need to complete all the required steps yourself, correctly. Additionally, it may be difficult or impossible to acquire proper insurance should something go wrong. The potential financial risks can be (sometimes much) greater than hiring a conveyancing specialist in the first place.
At GP Legal you get the best of both worlds. Our in-house licensed conveyancer takes care of the vast majority of property sales directly. Should you require any additional legal advice our team of solicitors are available to assist.
Hiring a conveyancer: Interstate conveyancing laws
The laws surrounding property transfers vary from state to state (and territory). It is important to understand the processes in order to avoid delays and/or penalties in your property transaction.
In some states, for example, sale contracts can be conditional upon the buyer receiving finance to complete. In NSW, however, the buyer must arrange finance prior to unconditional exchange of contracts. Similarly, the cooling off periods for different states or territories can vary considerably.
When dealing with interstate property transactions, without knowing the specific conditions of the transaction you may incur additional fees or suffer a delay in transfer. If you are attempting to purchase a property, you may even potentially lose your chosen property to another buyer.
It is highly recommended you hire a conveyancer licensed in the state that the property is based in. This way, they’ll be familiar with all laws and conditions required for the smooth transfer of title.
GP Legal
GP Legal are based in Dee Why on the Northern Beaches of Sydney. Our team includes qualified and experienced solicitors as well as a licensed conveyancer.
If you are in the process of buying or selling a property in NSW, we would be happy to assist you. Please contact us to discuss your requirements.