What is Conveyancing

It is important that a lawyer or conveyancer well-versed in this area is involved in the conveyancing process to ensure that the transfer of title is a legally valid transaction.

Typically, the conveyancing process involves three main stages which are:

• Pre-contract;
• Pre-completion; and
• Post-completion.

Pre-contract:

During this stage, the parties will firstly engage solicitors or conveyancers and have their representatives exchange details. This stage also includes:

• The seller gathering information about the property, such as title deeds, to provide to the buyer;
• The buyer conducting various searches on the property to uncover any potential issues. This may include enquiries and searches into the water and drainage, building inspections, pest inspections and enquiries into other features of the property;
• The arrangement of finance may also be a necessary step for the buyer during this stage;
• The seller will draft a contract for the sale, and the buyer will review the contract, raising any queries or amendments that they would like to be applied to the contract. The contract will often be passed between the parties multiple times for amendments to ensure that the final contract is amenable to both parties, and protects both of their interests.
• Once the contract is finalised, the exchange of contract will take place. This is the process by which each party will provide the other with a signed version of the contract. It is at this stage that the contract becomes legally binding.

Pre-completion:

During this stage, the buyer and their representatives will prepare for completion of the sale. This stage will usually include:  

• The buyer paying the deposit;
• The buyer arranging the payment of stamp duties;
• The buyer preparing and examining the mortgage agreement;
• The buyer checking if there are outstanding arrears or land tax obligations;
• The buyer finding out if any government authority (e.g., local council, Sydney Water, Transport for NSW) has a vested interest in the land or if any planned development could affect the property; and
• The calculation of adjustments for council and water rates for the property settlement.

Post-completion:

On the agreed date of completion, the buyer’s representatives will arrange for the transfer of the remaining balance of the purchase price to the seller. Once confirmation of receipt of the payment is conveyed, the buyer’s representatives will oversee the change of title with NSW Land Registry Services, and the matter will settle.

At this stage in the process, the exchange of title has been finalised, and the buyer holds legal title over the property in question.

Costs

The costs involved in conveyancing often vary depending upon the professional who is engaged. Fees that can be expected include:

• Disbursements incurred while photocopying, printing, or posting correspondence;
• Search fees sustained while performing title searches, environmental enquiries, drainage and water enquiries, and other searches;
• Valuation fees;
• Stamp duty and mortgage duty;
• Certificate fees charged by authorities responsible for water, electricity, roads, etc;
• Building and pest inspections; and
• Council and water rates.

Professional fees charged by the conveyancer or solicitor representing the prospective buyer or seller will also be provided in a completion statement upon the conclusion of the matter.

Is it cheaper to do it myself?

As outlined above, conveyancing is a complicated process, which involves the conducting of various searches, enquiries, negotiations and alterations of contracts and legal documents. There is a high risk of error due to the complexity of this process, and therefore it is recommended that a professional is engaged to assist you throughout. Mistakes can prove to be costly and may also cause delays, meaning that a self-represented buyer or seller may be liable to incurring even more costs than one who is represented by an experienced solicitor or conveyancer.

At ATA Legal, our solicitors are highly experienced with the conveyancing process, with years of practice in this field. We provide open communication with our clients all throughout the matter to ensure that your wishes are clearly communicated and reflected in the sales contract. Whether you are seeking to buy or sell a property, please feel free to contact us on (02) 8580 2312 or send us an email at info@atalegal.com.au so that we can assist you in navigating this conveyancing process.