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Conveyancing is the legal process of transferring property ownership from one party to another. It involves several steps and procedures to ensure that the transfer is legally valid and that the buyer obtains all the rights to the property.
Conveyancing is often handled by licensed conveyancers or solicitors as this helps the process go as smoothly possible when its handled by people who know what’s involved. Typically, the buyer and the seller will each have a conveyancing solicitor to help transfer the ownership of the property. Conveyancing solicitors are particularly useful when things don’t go as planned, for example, if the buyer wishes to withdraw from the purchase or wishes to negotiate conditions.
Main steps in the conveyancing process
- Preparation of Contract: The seller’s conveyancer reviews the contract of sale, which includes the terms and conditions of the sale, property details, and any special conditions.
- Property Inquiries: The buyer’s conveyancer conducts various searches and inquiries to check for any issues related to the property, such as title, zoning, planning restrictions, and any encumbrances or easements (e.g. areas on the property that cannot be modified or are off-limits to construction due to underground utilities, etc). Additional checks may be requested after the initial checks if there’s anything that needs further investigation.
- Review and Negotiation: Both parties review the contract and negotiate any necessary changes. Once both parties are satisfied, they sign the contract.
- Exchange of Contracts: The signed contracts are exchanged between the buyer and seller, and a deposit is usually paid by the buyer at this stage. The contract becomes legally binding.
- Finance Arrangements: The buyer finalises their mortgage or other financing arrangements for the purchase.
- Preparation for Settlement: The conveyancers prepare for settlement by ensuring all necessary documents are ready and arranging for the transfer of funds.
- Transfer of Funds: The buyer’s conveyancer arranges for the transfer of the remaining purchase price to the seller.
- Transfer of Ownership: The seller’s conveyancer hands over the transfer documents, and the property’s title is officially transferred to the buyer.
- Settlement Statement: Both parties receive a statement detailing the financial aspects of the transaction, including adjustments for rates, taxes, and other outgoings. Keys are typically handed over that this stage.
- Registration: The buyer’s conveyancer lodges the transfer documents with the relevant land registry to officially register the buyer as the new owner.
- Notification of Authorities: Relevant authorities, such as local councils and utility providers, are notified of the change in ownership.
Getting started
If you are looking for a conveyancing solicitor, take a look at Brisbane-based LawLab.