11 Aug 2017

How Does Conveyancing Work?

Buying a property is not just about taking out a home loan to finance the house. There’s also a legal process involved called conveyancing. If you have no idea what conveyancing is, or how it works, here’s your quick guide.

What is conveyancing?

Conveyancing is a legal process that involves transferring land ownership from one person to another. So whether you’re a buyer or a seller, it’s necessary to have a conveyancer or a solicitor to guide you through the legal aspects of buying and selling a property.

Not every state and territory in Australia has the same process but these are the general stages that conveyancing goes through.  

What is a conveyancer?

Conveyancers are licensed specialists whose job is to act on your behalf during your property purchase or sale of property.

While you can DIY conveyancing, it’s highly recommended that you hire a licensed conveyancer or a qualified solicitor as the process can be complex. A conveyancer will typically perform the following tasks:

  • Organise the necessary documents to complete the transaction
  • Search the certificate of title
  • Arrange the payment of stamp duties
  • Review the Contract of Sale or purchase
  • Examine the mortgage agreement
  • Adjust rates and taxes
  • Liaise with the seller’s or buyer’s conveyancer
  • Liaise with the lender regarding the settlement
  • Organise the settlement statement
  • Attend settlement on your behalf

How to find a good conveyancer

You want to hire a competent conveyancer to ensure that there are no mistakes with the legal documents. To make sure that you’re getting the best, you can ask these questions to your prospective conveyancers:

  • Are you a member of the Australian Institute of Conveyancers?
  • What type of property do you specialise in?
  • What are the fees and charges and what services do they cover?
  • How much will any additional services cost?
  • How will we communicate?

The cost of conveyancing will vary greatly from business to business. However, you can assess the cost by the coverage of their services. Some conveyancers may or may not include certain services like attending settlement day on your behalf. So it’s best to ask the conveyancer about the coverage of their services.