What Disputes Commonly Arise in Conveyancing?

Common conveyancing disputes involve contract terms, finance approval, building and pest inspection results, property condition, settlement delays, title issues, deposit disputes, and breaches of contract by buyers or sellers. Identifying these risks early and obtaining professional conveyancing advice helps resolve issues quickly, protects your legal rights, and reduces the likelihood of costly delays or failed property settlements.

At Red Door Conveyancing, we work with clients across Victoria to help identify potential issues early and guide transactions through to a successful settlement.

1. Contract Disputes

One of the most common causes of conveyancing disputes relates to the Contract of Sale. Problems can arise when:

• A party misunderstands the contract terms.
• Special conditions are unclear or disputed.
• One party believes the other has breached the contract.
• There is disagreement about what was included in the sale.

Carefully reviewing the contract before signing and obtaining professional advice can significantly reduce the risk of disputes.

2. Finance Approval Issues

Many property purchases are subject to finance approval. Disputes may occur when:

• A buyer’s finance is declined.
• Finance approval is delayed beyond the agreed timeframe.
• The finance condition is not satisfied correctly.

Missing important deadlines can place buyers in breach of contract, making it essential to monitor finance approval closely.

3. Building and Pest Inspection Concerns

Where contracts include building or pest inspection conditions, disputes sometimes arise over:

• The seriousness of identified defects.
• Whether repairs should be completed before settlement.
• Whether the buyer can terminate the contract.

Having inspections completed promptly allows sufficient time to negotiate outcomes if problems are discovered.

4. Property Condition at Settlement

The property should generally be in the same condition at settlement as it was when the contract was signed, fair wear and tear excepted.

Common disputes include:

• Damage occurring before settlement.
• Fixtures being removed unexpectedly.
• Rubbish or unwanted items being left behind.
• Agreed inclusions missing from the property.

Conducting a final inspection before settlement helps identify any issues while there is still time to address them.

5. Settlement Delays

Settlement can be delayed for a variety of reasons, including:

• Bank processing delays.
• Outstanding mortgage discharges.
• Errors in settlement documentation.
• Last-minute administrative issues.

Even short delays can result in penalty interest or additional costs, depending on the contract terms.

6. Boundary and Title Issues

Sometimes problems are discovered during the title search or document review, such as:

• Boundary discrepancies.
• Easements affecting the property.
• Covenants restricting development.
• Unregistered interests on title.

These issues can affect a property’s value, future use, or even delay settlement if not addressed promptly.

7. Deposit Disputes

Questions occasionally arise regarding the deposit, including:

• Whether the deposit has been paid correctly.
• Requests for early release of the deposit.
• Entitlement to the deposit if the contract is terminated.

These matters can become legally complex and often require careful interpretation of the contract.

8. Default by a Buyer or Seller

A dispute may arise if either party fails to meet their contractual obligations.

Examples include:

• A buyer failing to settle on time.
• A seller refusing or being unable to provide vacant possession.
• Failure to comply with agreed contract conditions.

Depending on the circumstances, remedies may include extensions of time, compensation, or termination of the contract.

How Can Conveyancing Disputes Be Avoided?

While not every dispute can be prevented, many issues can be minimised through good preparation and professional guidance.

Some practical steps include:

• Carefully reviewing the Contract of Sale before signing.
• Meeting all contractual deadlines.
• Arranging finance as early as possible.
• Completing inspections promptly.
• Maintaining clear communication between all parties.
• Engaging an experienced conveyancer from the beginning of the transaction.

At Red Door Conveyancing, we understand that property transactions can be complex, particularly when unexpected issues arise. Our role is to identify potential risks early, explain your rights and obligations in plain language, and help resolve issues before they become major disputes.

For professional and reliable conveyancers, contact us on 03 8456 6797 or submit a contact form for faster transaction.