Miji Michael April 09, 2021
Conveyancing is the legal work involved in preparing the sales contract, mortgage and other related documents for a property. It’s the legal process of transferring ownership of a property from the current owner (vendor or seller) to a new owner (purchaser or buyer).
It consists of three main stages:
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Pre-contract
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Pre-completion
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Post-completion
These three steps include any work needed when buying or selling a property, subdividing land, updating a title or registering or changing an easement. It can also include assisting with the transfer of ownership, including home loans and any other conveyancing activity.
Who can do conveyancing work?
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A licensed conveyancer specialises in a title transfer and has detailed knowledge in one area of the law, being property law
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A solicitor who specialises in property conveyancing but also broader knowledge of the law in general
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Do your own conveyancing - If you choose to do your own conveyancing, research what is required and the risks involved. Do-it-yourself kits are available but generally provide guidance material only.
You will still be personally liable if there is a problem with the sale even if you followed the instructions. It may also be difficult for you to purchase the same level of insurance available to a licensed conveyancer or solicitor.
CAUTION: If you take on doing your own conveyancing then you take on all the responsibility for the sale progressing in a legal manner. Make sure you fully understand the sale process and relevant legislation.
This difference in knowledge and experience is what creates a price difference between conveyancers and solicitors, but when or if something goes wrong, and unfortunately occasionally it does happen, it is better to have a legal firm and solicitor working on your side.
The conveyancing process
Conveyancing can involve these steps:
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examining the contract for sale
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arranging building and pest inspections
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examining a strata inspection report (if the property is in a strata scheme)
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arranging finance if necessary
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exchanging the contract of sale
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paying the deposit
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arranging payment of stamp duties
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preparing and examining the mortgage agreement
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checking if there are outstanding arrears or land tax obligations
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checking if swimming pool compliance documentation is needed
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finding out if any government authority (eg. local council, Sydney Water, NSW Roads and Maritime Services) has a vested interest in the land or if any planned development could affect the property
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finding out any information that may not have been previously disclosed such as a fence dispute or illegal building work
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calculating adjustments for council and water rates for the property settlement
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overseeing the change of title with Land and Property Information NSW
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completing any final checks prior to settlement
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attending settlement.
IMPORTANT:
Before the conveyancer or solicitor starts the work, ask for an itemised statement of the likely costs to give you a better idea of the total.
Costs
Fees vary between solicitors and conveyancers. As well as a legal service fee you will usually be charged for disbursements, which includes:
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a title search
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certificate fees charged by authorities with responsibility for water, electricity, roads, schools etc.
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photocopying
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registering the mortgage
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registering the transfer.
Conveyancing costs other than legal fees and disbursements, includes:
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building and pest inspections
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survey report
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establishment of mortgage
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home building insurance
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valuation fees
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mortgage insurance
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stamp duty and mortgage duty
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levies, if the property is in a strata or community scheme
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council and water rates.
Legal practitioners and conveyancers must disclose their costs to clients, including the client’s right to negotiate a costs agreement, receive bills and be advised of changes.