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Conveyancing is the legal process of transferring property from one owner to another. The process typically involves several stages, and these stages can vary somewhat depending on your specific situation. However, the general stages involved in conveyancing are discussed below.
The initial stages of conveyancing differ depending on whether you are a buyer or seller.
If you are selling a property, the initial stage is Contract Preparation.
1. Contract Preparation
The seller engages a conveyancer to prepare the Section 32 and Vendor’s Statement. This documentation includes details about the property that must be disclosed to potential purchasers.
If you are buying a property, the initial stage is a Contract Review.
1. Contract Review
The potential purchaser engages a conveyancer to review the Section 32 and Vendor’s Statement. It is often recommended to have the Section 32 and Vendor’s Statement reviewed prior to signing a Contract of Sale to ensure the potential purchaser is satisfied with the terms relating to the sale.
The purchaser can use advice provided at this stage to suggest alterations to the Contract, though the seller may not necessarily accept the proposed changes.
The following stages are relevant for both the buyer and seller
2. Sale Contract Signing
The buyer and seller sign the Contract of Sale. A copy is sent to each side’s conveyancer. Typically, the purchaser will pay a deposit at this stage.
3. Cooling-off Period
A cooling-off period may apply during which the buyer can withdraw from the contract. A cost is typically incurred by the buyer for withdrawing from the contract within 3 business days of signing a contract (with the exception being auction contracts which don’t have a cooling off period). This cost is 0.2% of the purchase price.
4. Pre-Settlement
- The purchaser’s conveyancer conducts property searches, including title searches and other relevant enquiries.
- The purchaser and seller will complete ID verification and other documentation in preparation for the transfer, such as authorisations and State Revenue Office Stamp Duty documentation.
- If the purchaser is borrowing funds, finance approval must be obtained prior to settlement.
5. Settlement Preparation
The majority of settlements now take place on the PEXA platform. A PEXA workspace will be set-up by the seller’s conveyancer and all relevant parties will complete electronic documentation jointly on PEXA. Such documents as the Transfer of Land, Notice of Acquisition and Disposition, Mortgage Discharge and Caveat lodgement or removal are created here. Caveats are lodged as soon as the property goes unconditional where a client wishes to protect their interest in the property against any external risk.
6. Settlement
Settlement is the process in which the remaining funds are transferred to the vendor and the legal title passes from the vendor to the purchaser. This process typically takes place on the PEXA platform.
7. Post-Settlement
The conveyancer notifies utility providers and body corporates of transfer of ownership.
It’s essential to engage a qualified conveyancer to guide you through the conveyancing process.
For more questions and concerns about conveyancing, our professional and licensed conveyancers at Red Door Conveyancing can assist you. You may contact us on 03 8456 6797.
