Whether you are buying a new property or ready to sell, you will likely need to employ a conveyancer or a solicitor to help you satisfy all the legal requirements needed in order to transfer ownership from one person to another.
If you are curious about the ins and outs of the conveyancing process or, more importantly, how much utilising a conveyancer costs, this article will dive into the most commonly asked questions when it comes to conveyancing.
What is conveyancing?
Conveyancing is a legal process that ensures all required documents involved in the transfer of property ownership from one owner to another are prepared correctly and that you are represented during the process. Conveyancing is typically carried out by a conveyancer or solicitor specialising in property law. These professionals ensure that all legal requirements are met and that the transfer of ownership is completed smoothly and securely.
The conveyance of a property is undertaken by both parties, including those who are selling and those who are buying. The general conveyancing process typically follows three steps:
- Pre-contract
- Pre-completion
- Post-completion
If, at any stage during this process, any appropriate paperwork is incorrectly completed or lodged by the required dates, your contract may be voided.
What does a conveyancer do?
A conveyancer is a licensed professional who oversees and manages the transaction of the sale of a property while ensuring it complies with the legal regulations of your state or territory.
The responsibilities of a conveyancer differ across each step in the conveyancing process, which are outlined below.
Pre-contract
Pre-contract, as the name suggests, is the initial phase of the conveyancing process and it involves several steps, including:
- Drafting the contract for sale: Preparing the legal documentation that sets out the terms and conditions of the sale.
- Conducting property searches: Checking the property’s title, local authority planning permission, and other relevant factors pertaining to the property.
- Reviewing the property information: The buyer's solicitor will examine the property's title, leasehold or freehold, and other relevant details, and raise any queries that need clarification.
Pre-completion
This phase begins when the seller accepts the buyer's offer. From that point forward completion includes:
- Exchange of contracts: Both parties will sign a contract and exchange the agreed upon deposit. At this point, the sale becomes legally binding.
- Completion statement: This outlines the balance of funds needed from the buyer to complete the sale, including any outstanding payments or adjustments.
Post-completion
Post-completion is the final phase of conveyancing and includes:
- Registration of the transfer: The buyer's solicitor will register the transfer of ownership with the relevant land registry.
- Payment of stamp duty: The buyer is responsible for paying any applicable stamp duty tax, which is calculated based on the purchase price of the property.
- Finalising other details: This includes any final payments to be made, or other necessary arrangements such as the transfer of utility accounts.
How much does conveyancing cost?
Conveyancing costs can vary greatly depending on the particulars of your sale, and whether or not the conveyancer works in a solicitor’s office, small business, or is self-employed.
As an estimate, you can expect to pay between $500 to $2,500 in conveyancing fees. It’s important to note, depending on your relevant state or territory, you may be required to allocate separate funds for additional disbursement costs.
For reference, some of the disbursement costs involved in conveyancing according to the Australian Institute of Conveyancers NSW Division (AICNSW) include:
- Title search: $20 - $100
- Local council building certificate: $250
- Local council, rates certificate: $65
- Land tax, clearance certificate: $20-$25
- Drainage diagram: $25
- Environmental Protection Authority: $20 - $25
- Roads and Traffic Authority: $20 - $25
- Local council pool compliance/ non-compliance certificate: $150 - $450
Note: These costs are approximate and NSW based only. If you require conveyancing in another state or territory, these figures may differ.
Before hiring a conveyancer, make sure to ask them for a detailed quote that outlines all the expected inclusions and fees that may be charged to you.
Why do you need a conveyancer when buying a property?
Buying a property is an exciting milestone, but it can also be a daunting experience. A conveyancer can provide peace of mind by handling all the legal documentation, allowing you to focus on other aspects associated with new home ownership.
Conveyancers are able to spot any discrepancies that may require attention, ensuring a seamless transaction. While you can opt for a conveyancing kit to save money, it is essential to remember that the process can be intricate and time-consuming. Failing to comply with specific state or territory laws or missing deadlines for document submission can have dire consequences, including the loss of your deposit. Importantly, unlike conveyancers who have professional indemnity insurance, you won't be covered by insurance if something goes wrong.
If you are in the market to purchase a new property and looking for a competitive home loan, head to loans.com.au to get started or chat to one of our lending specialists today.
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