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Wondering what you need to know about Property Conveyancing? If you’re looking to purchase a property in Melbourne, you’ll need a conveyancer or a Melbourne property lawyer to help you with the transaction.
The property law experts and conveyancers at Melmark Law in Melbourne can offer you comprehensive advice to make sure your transaction goes without a hitch.
What is property conveyancing in simple terms?
It is the transfer of the legal title of a property from one person to another.
The process of conveyancing involves many tasks to ensure a correct, legal transfer of the property, but can be divided into 2 main parts.
- Contract exchange
- Settlements
This means that it is important you consult with experienced Melbourne property lawyers or conveyancers when you are ready to go through with your purchase.
The expert legal team at Melmark Law can help you through the steps for successful property conveyancing, which are outlined below.
Contract of sale
This is a vital document for your property purchase. Disputes may occur between you and the seller, so an experienced Melbourne property lawyer must prepare this document before the purchase occurs.
Making an offer
You will need to make an offer if you are serious about purchasing a property. The seller may accept or attempt to negotiate with you on the price and conditions of the sale.
Paying the deposit
When the seller accepts your offer, you both agree to exchange contracts. This is when you pay the deposit. This sum is held by the Melbourne property lawyers that represent you.
Buying at auction
You must make the highest bid to buy at auction. It is ideal to have your Melbourne property lawyers inspect the contract of sale before the auction.
Insurance
Since the responsibility for damage to the property is transferred from the seller to you at settlement, you will need to buy insurance. Some sellers ask for proof of existing comprehensive building insurance as a loan condition.
Exchange of contracts
This initiates the business end of property conveyancing. The seller and buyer are provided a copy of the agreement. The deposit is paid when the contracts are signed. The rest of the money will be paid at settlement.
Cooling off period
There is no cooling-off period when buying at auction. But if your purchase is via a private treaty, a cooling off period applies. This gives you time to organise pest and building inspections and find finance. You can also revoke the contract before this period ends.
Property title transfer
The transfer agreement is organised by your Melbourne property lawyer. You must sign and pay stamp duty to register the document. Your lawyers will then obtain the seller’s signature on the form, which validates the transfer. You must pay stamp duty to your lawyer before or at the time of settlement.
Completion time
A clause called “time of the essence” exists in property conveyancing contracts. If either party fails to fulfil the actions on the mentioned dates, the other party may terminate the contract and sue for damages.
Requisitions and warranties
Requisitions are questions about the property that are not yet answered by the seller. The seller’s lawyer/conveyancer must reply to these questions. Your lawyer may also carry out searches for any defects in the title.
Outgoing mortgagee
If the seller has a mortgage, the mortgagee must be involved in settlement to name a payout figure and provide a mortgage discharge and the certificate of title/title deed.
Adjustments
The conveyancing process continues with adjustments made based on any council rates applied by the seller. Other adjustments may concern water rates, strata body corporate contributions, land tax and rent.
Settlement
Property conveyancing is complete at settlement, which is when the buyer pays the rest of the money for the title, with adjustments. Your lawyers will do a final search of the title to make sure nothing has come up between the contract exchange and settlement dates.
After settlement
The buyer’s mortgagee will submit the transfer document to the Land Titles Office. This transfers the title from the seller to the buyer. All relevant authorities concerning the property are notified of the new land ownership by the office.
