Looking For A Conveyancer?

What Does A Conveyancer Do?

Perhaps you’re new to the property market and have been asked by your agent for your conveyancer’s or solicitor’s details. Or maybe you just don’t know where to start with the purchase or sale of your home. Unless you’re a lawyer or have plenty of free time on your hands, you will need a conveyancing professional to handle the legalities of purchasing or selling a property.

Once you sign a contract to purchase a house, that’s only the beginning of the process. There are many important considerations that need to be made and checks that should be carried out before the sale is finalised – a process that is often referred to as “settlement”.

This is where you need the help of a reliable conveyancing professional. In broader terms, a conveyancer is responsible for making sure you meet the legal obligations involved in a property transaction. Along with protecting your rights throughout the process, the scope of work that a conveyancer will undertake varies, depending on the complexity of the property transaction.

Dealing with legal paperwork and document handling

One of the most important and essential responsibilities of a conveyancing professional is the accurate preparation of the documents required in your transaction. Your conveyancing team will draft the transfer documents to ensure the property is rightfully and legally transferred to or from your name. It’s also the conveyancer’s job to ensure that all documents comply with the legal regulations in your state or territory.

Searches and preparation of the statement of adjustments

A conveyancing professional will conduct the relevant searches required in your state and prepare all the relevant settlement documents. The conveyancer’s job is to protect you, by undertaking the relevant enquiries and ensuring the necessary adjustments are made at settlement.

If there is any debt on the property, such as outstanding council rates (which can be quite common), the conveyancer prepares the statement of adjustments to ensure you don’t inherit any of these debts (if you are the buyer).

Examples of searches that a conveyancer may recommend include:

• Title search: to ensure the property belongs to the seller and determine whether there are any other rights or interests registered against the land that may impact your use of the property.
• Rating authorities: to check the current liability for rates and taxes affecting the land, and to ensure these are paid at settlement.
• Local authority searches: to check whether there is any future development planned for the area that may affect the land (e.g., construction of a highway, road-widening or apartment complex, etc). Additionally, these searches can also check for any environmental impacts affecting the land, such as the risk of bushfire and flooding, as well as matters that may impact your use and enjoyment of the property, such as heritage restrictions, contamination or nature preservation orders.
• Building and structural report: to ensure the property is structurally sound.
• Termite and pest report: to check there are no pre-existing problems with insects and termites, which can create serious structural damage caused by termite infestation – and a potentially costly repair bill.
• Strata report (if apartment): to look at minutes or recent body corporate meetings to find out whether there are any issues with the building, as well as the balances of the management and capital works funds, and details of any insurances in place.

Depending on which state the property is in, the seller will attach the mandatory searches to the contract. Additional searches will need to be obtained by the buyer. Reports for building, pest and strata inspections are generally not included by the seller, but be aware that state-specific differences do apply. For example, in the ACT, the seller must attach these reports to the contract.

As a buyer, you can discuss your search needs with your conveyancing team and decide which ones best suit your needs. Some checks can be undertaken after your offer has been accepted, while others, such as a title search and inspection reports, are best done before entering any contract.

Contract of sale preparation (Seller)

If you’re selling a property, your conveyancing professional will prepare the contract (and, if you live in Victoria or South Australia, a seller’s disclosure statement), as well as make sure any specific requirements and conditions are written into the final contract. Ensuring the contract is written up correctly is the key to a smooth transaction. If there are errors with the disclosures in the contract, this can compromise your sale, create disputes, and may even result in termination of the contract – costing you money.

Questions from the buyer or buyer’s solicitors/conveyancers will also be handled by your conveyancer. This leaves you free to focus on moving out or looking for your next home or investment to expand your property portfolio.

Contract of sale review (Buyer)

If you’re buying, our conveyancing team will review the contract (and, where applicable, the seller’s disclosure statement) to look for any errors, unusual clauses or problems that may raise any red flags. They will also explain the terms of the contract, any important dates to diarise throughout the settlement period, and give you advice on any conditions that can be added to protect you.

Having a conveyancing professional read and explain the contract to you before you commit to the purchase protects you from potentially avoidable and expensive risks, such as buying a house with an illegal extension. In today’s property market, you may feel pressured as the buyer to make a fast decision, especially if you are looking to buy in a high-profile area. However, it is always better to ensure you fully understand your obligations before signing on the dotted line.

Our conveyancing team can assist you to understand the various clauses in a contract and help you make an informed decision about whether to proceed with the purchase. Cooling off rights vary from state to state, so, it is wise to be familiar with the laws that apply to your state before paying a deposit. It is also important to remember that there is no cooling off rights when you buy a property at auction. Make sure you have conducted your due diligence before you make a bid!

New South Wales

In New South Wales, there is a five-day cooling off period, beginning at exchange of contracts. The “exchange” occurs when both the buyer and the seller have signed the contract and the buyer has paid the initial deposit to the seller’s agent. A seller may request that a buyer waive the cooling off period by giving a Section 66W Certificate. This certificate can only be given by a solicitor or licensed conveyancer, so you’ll need to contact our conveyancing team, if you need one. If you have waived your cooling off rights, you may not be able to withdraw from the contract without forfeiting your entire deposit. If you sign a contract at an auction, you automatically waive your cooling off rights. The best way to approach this is to get a copy of the contract before the property goes to auction and consult a conveyancing professional. On the other hand, if you have a five-day cooling off period and decide to withdraw from the contract, you will forfeit 0.25% of the purchase price as a penalty. Consider whether you need a cooling off period to obtain your pre-purchase inspections. The cooling off period may also be used to finalise finance arrangements.

Queensland

Contracts in Queensland also have a five-day cooling off period, however there are additional opportunities for the buyer to opt out of the contract. Unlike NSW, there is more flexibility in QLD. This is because the seller does not have to include any additional documents to the contract. So, the five-day cooling period can be used by the buyer to undertake any relevant searches. Additionally, the buyer is also allowed ample time, (usually 21 days) to obtain a satisfactory pest and building report. Where the buyer is not satisfied with the report, they may withdraw from the contract without forfeiting any monies. Additionally, the QLD contract includes an optional finance clause giving buyers up to 21 days to obtain a formal loan approval. It is only once a buyer is satisfied with their pest and building report and obtains satisfactory loan approval, that the contract become unconditional, and the buyer is “locked in”.

Victoria

The cooling off period in Victoria is limited to three days and will start once the buyer signs the contract (even though the seller may not, in fact, sign it until much later!) So, bear in mind that once you sign as the buyer, your cooling off period starts immediately. In Victoria, when the buyer decides to exit the contract within the cooling period, they will forfeit either $100.00 or 0.2% of the purchase price (whichever is greater). Given the very short cooling off period in Victoria and the way in which it starts, you may wish to consider undertaking any necessary checks before signing the contract. Ask our conveyancing professionals for advice on the contract before you decide to proceed.

Tasmania

An optional three-day cooling off period is included in the Tasmanian contract. Unlike other states this is not a statutory right and, as such, may be waived by the buyer, and does not require a certificate from a solicitor or licensed conveyancer to do so. There is no penalty for exercising cooling off rights in Tasmania. Tasmanian contracts are like contracts in QLD, in that they include options to have the contract made subject to a building report and/or finance approval.

South Australia

The cooling off period is shorter still in SA, at only two business days. If you change your mind, and decide to pull out of the contract, you will pay a penalty of $100.00.

Western Australia

Unlike other states, there is no cooling off period in Western Australia. Once the contract is signed by the seller and buyer, all parties involved are legally bound to the contract and must adhere to its terms. Pulling out of a property sale or purchase after this stage could result in serious legal or financial penalties. When you sign a contract, you are legally committing to the transaction. You may have additional rights if your contract is subject to pre-purchase inspection conditions.

Additional advice

With an experienced team of solicitors and conveyancing professionals, Conveyancing.com.au can also guide you through other aspects of the conveyancing process, including stamp duty, electronic settlements, verification of identity and working with your lender. Most importantly, our firm has a fixed professional fee and does not charge extra for advice which is within our scope of work.

Finance and adjustments

Our conveyancing team plays a vital role in maintaining regular contact and coordinating settlement with your chosen lender or financial institution, to ensure they receive all the required information and supporting documents ready for settlement. If there are adjustments and payments to be made as part of the settlement, such as for council rates, water rates, land tax and (where applicable) strata fees, your conveyancer will calculate these amounts and include them in a statement of adjustments.

As the buyer, you are liable for any rates payable for the property after the date of settlement. So, if the seller has paid the rates in advance, you may need to reimburse the seller for any overpayment at settlement. Your conveyancer ensures that all payments are correct and final as of settlement date.

Communication!

Our conveyancing team will take care of the bulk of communication for you. This means calling, emailing, or sending letters to other parties involved in your transaction. This is just another part of our job – to take care of the stress and time-consuming conversations for you!

Arranging settlement

Our conveyancing team will coordinate settlement with all parties involved. This includes arranging, booking, and attending to settlement. We will also contact your lender to ensure they will be able to complete settlement at the appointed time without any delays.

Property is a significant investment and, when it comes to working with professionals to help you manage all the important aspects of your transaction, undertaking due diligence is always recommended. By connecting with a conveyancing team that is experienced and reliable, you are taking a positive step towards a successful settlement.