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Conveyancers play a crucial role in the settlement process, ensuring the property transfer is completed smoothly and in accordance with legal requirements. Here’s what a conveyancer typically does at settlement:
1. Final Checks
Leading up to the day of settlement, the conveyancer will ensure all necessary documentation has been completed and all outstanding issues are resolved. The conveyancer will work with associated parties such as banks to ensure finance is in place and funds are available.
2. Preparation of Settlement Statement
The conveyancer will prepare a statement detailing the financial aspects of the transaction. This will include the total purchase price (less the deposit), stamp duty, adjustments for rates and taxes and other relevant fees.
3. Exchange of Documents
The conveyancer overseas the exchange of legal documents, including transfer of land documentation and any other relevant paperwork required to complete the transfer of ownership.
4. Attending Settlement
Settlement will be scheduled for a particular time on the agreed date. While settlements can take place in-person, the majority of settlements are now completed electronically on the PEXA platform. This platform allows both the buyer and seller’s representatives and the banks involved to have visibility of the property transfer and confirm when settlement has taken place.
5. Transfer of Funds
The conveyancer will ensure that the purchaser’s funds are transferred to the seller’s nominated bank account on completion of settlement, in exchange for the property title. For electronic settlements, this transfer is done on the PEXA platform, with funds being transferred sometimes within minutes depending on the financial institution.
Stamp duty for the property will also be paid at settlement, with the funds directed to the State Revenue Office either by cheque for physical settlements or through the PEXA system for electronic settlements.
6. Notification of Completion
Once settlement is complete, the conveyancer will notify the relevant parties, including the buyer, seller, and their respective agents, that the transaction has been finalised.
7. Post-Settlement Procedures
Following settlement, the conveyancer will notify the relevant utilities of the change of ownership.
In property transactions, the conveyancer acts as a facilitator for the buyer or seller, ensuring that all legal and financial aspects of the property transfer process are handled correctly and efficiently at settlement.
How Long Does Conveyancing Take?
The time required for conveyancing can vary significantly depending on several factors, including the type of property (such as a house or a new build) and the completion of financial arrangements. Typically, the conveyancing process for houses ranges from 4 to 16 weeks. However, for new builds, this process can take considerably longer. The overall conveyancing duration is influenced by a combination of legal, financial, and practical considerations.
Is Conveyancing the Same as Settlement?
No, conveyancing and settlement are not the same. Conveyancing refers to the entire legal process involved in transferring property ownership. Settlement, on the other hand, is the final stage of this process, where the actual transfer of the property occurs and the balance of the purchase price is paid. In essence, conveyancing covers the complete legal procedure, while settlement specifically marks the moment the property changes hands from the vendor to the purchaser.
If you have conveyancing or settlement questions, please contact us on 03 8456 6797 for more helpful tips and advice.
