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How Conveyancing Process Works - Tips And Tricks

Written by Posted On Tuesday, 25 August 2015 23:10
How Conveyancing Process Works - Tips And Tricks

Conveyancing is the basic process of transfer of ownership, usually dealing with land and real estate. It encompasses all the legal and administrative paperwork along with the on-the-ground expertise necessary for transfer of ownership.

For the seller, conveyancing would mean the transfer of ownership but it also works the other way round- the mortgagor (the purchaser) pays the mortgagee (the bank or the vendor)

There are subtle variations in the laws governing the legal aspects of conveyancing but the basic process remains the same.

1.      The first step is the Contract of Sale in which a professional tries to amicably and legally resolve the issues between vendors and buyers prior to any exchange of currency. This ensures that the contract is legally binding hereafter. Prior to making a Contract of Sale, the conveyancer of the buyer can help to compare quotes and save money for the buyer.

2.      An offer is then made by the purchaser after which the sale either proceeds smoothly or goes into negotiations over the price and applied conditions.

3.      As a sign of interest, the purchaser is usually expected to pay a deposit once the offer is accepted by the seller. This does not in any way mean that the contract is binding or that the property cannot be taken off the market. The amount of deposit is usually non10% of the total amount and is non-refundable.

There are several plays and tricks of the trade involved here, called ‘gazumping’. The vendor accepts deposit money from two potential clients and then increases the price of the property by leaving the two buyers to outbid each others’ offer. Another trick employed by vendors is that they often accept deposits from multiple buyers and sell it just one of them, thus pocketing the rest of the interested parties’ money.

4.      The responsibility of maintenance of the condition of the property in question rests with the vendor till the sale is completed. However, it is wise for the buyer to ensure that the land/building is properly insured. Obtaining a Certificate of Currency is a prudent step in the direction, prior to the settlement.

5.      Once the contracts are exchanged, it means that all the responsibility of the property now rests with the buyer. There are various legalities involved and a professional can easily guide a buyer through the process.

6.      There is often a cooling off period allotted to the buyer wherein s/he can rescind the contract if need be. There is no cooling off period allowed after sales at an auction.

7.      The transfer of property title involves communication between the buyer’s solicitor/ conveyance and that of the vendor. The documents are stamped and signed by the purchaser and sent to the seller for the same.

Delaying the payment of Stamp Duty is not legal and it must be organized prior to the settlement so that the banks can process the authenticity of the deal and therefore, carry out its part in finalizing the deal.

 

8.      Time for Completion is volatile and can be agreed upon by the vendor and seller.

9.      Following the finalization of the deal, the buyer’s conveyancer sends a formal list of inquisitions and questions to the vendor’s conveyancer, that include queries about previously undisclosed information or data which was unearthed during inspections after the deal is finalized. For instance, checking for any other constructions that may have been sanctioned around the land which may not be comfortable for the buyer, such as a prison or a chemical factory, or sewer lines which may have been clogged over time and need to be looked into.

10.   Final adjustments can be made leading up to the Settlement. The deal is called Settled or Closed on the day the buyer completes the net payment and seals the deal. On the day of the settlement, the buyer’s conveyancer ensures that no changes were made after the offer was made and before the payment was made.

11.   After the settlement, the buyer’s conveyancer must initiate settlement of all outstanding mortgages, transfer the title to the buyer, and carry out any other legal proceedings deemed essential.

 

 

 

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