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If you thought locating your perfect property within budget was tricky, wait until you see the paperwork!
Transferring property from one person to another is a headache for anyone who doesn’t know property law and terminology like the back of their hand. I do, and even still, I come across the occasional contract that has conditions that make absolutely no sense.
You don’t have to get your head around the processes and laws alone. In fact, lodging your property transfer papers is something that needs to be done by a professional. The new E-conveyancing system reduces errors in paperwork to help make completing your property settlement a breeze. As well as reducing eros and keeping settlements on track for their due date, E-conveyancing also helps abolish fraud cases, where people attempt to sell properties they don’t actually own. That’s some pretty big reasons for governments to make the switch and move settlement online.
A conveyancer is a qualified professional in property law and property dealings. They and experience and knowledge in:
Because you most likely won’t have the time or skills to decipher and follow the processes to secure your property transfer, you’ll need to pay a professional conveyancer to handle the load. Of course the big question is how much is this going to cost?
I can’t give you a one-size-fits-all answer because, in truth, there are so many variables when it comes to your property and what needs to happen to get settlement over the line, however there are some essentials to factor in and some great questions to ask to know if you are really getting value for money.
Here are some factors that will determine the price of your conveyancing service. Be sure to ask where you stand and what’s included:
Yes, prices are important, but when it comes to choosing who to go with you should also look at other aspects of a conveyancer, such as their qualifications, years of experience, location they service, their reputation as well as the level of service they offer.
Conveyancers are specialists in property law. In order to know their way around the complexities of property dealings they must have completed a minimum two years tertiary study and then completed at least two years supervised practical experience. When they have achieved this they are eligible for a conveyancing licence in their state or territory. Every state has different requirements so be sure the conveyancer you are speaking with has a license for the state you are buying or selling property. Ask to see their membership to the Australian Institute of Conveyancers.
It’s really important to conduct your conveyancer screenings well before you make an offer and most certainly before you sign a contract. Once the contract is signed you lock yourself into any errors or problems the contract may contain, and it’s final.
The best time to look for a conveyancer is well before you have your shortlist. That way you have plenty of time to screen conveyancers and look over quotes before the pressure to seal the deal builds.
Ask your conveyancer (or even number of potential conveyancers) for a written quote that itemizes the costs so you know what to expect. Be sure to ask what the upfront fees include and what you might still need to pay for on top of the charges they have shown you.
Just remember when you are comparing quotes, a lower price means less of something, so ask what it is that makes them so much cheaper. Chances are it’s an item you need and it will be an added cost on top of your bill, or, worse, it’s a service you are going to wish you had access to, like being able to pick up the phone and ask a question whenever you need to or track the status of your settlement to ease your nerves.
All inclusive services are a little more on paper but give you the greatest coverage and will cost less than services that add to your bill as you go.
Before you sign a sale contract to buy a particular property or sell, have an expert conveyancer sit down with you to outline the process involved specific to the property in question. If you have a particularly complex property to deal with or it requires special skills to understand, expect to look a little harder and pay a little more for the right conveyancer to handle the job.
As well as giving you a heads up on any issues you need to look out for, it will also help ensure a smooth transaction overall, by navigating any bumps on the road well in advance.
It’s also a good way to know if this is the right conveyancer for your needs. You want them to have experience in the type of property and situation you are handling.
Some things you need to make clear about your situation early on are:
If there are any restrictions or zoning issues, you want to know about this before you buy, not after. Your conveyancer can carry out important background checks to uncover any relevant planning restrictions or zoning regulations that might affect the property’s value, or put limits on how it is modified, used or sold. There are also a number of local, state and national laws that might have big implications if you don’t get the correct checks and make the right inquiries relevant to your property type. So for example it’s not possible to build on some rural land blocks, which might leave those looking for a beautiful lifestyle change with an expensive sheep paddock.
Background checks also show any easements or government entitlements to the land or the existence of unapproved buildings or structures. Make sure these are covered on your quote. For example title searches or looking into relevant council codes generally run under $400 dollars.
There are rights that you are entitled to when buying and selling property. These are usually set out as standard in sale contracts, however, making adjustments to include or omit contract items is legal and happens often. What that means is you can have a contract that is not in your favour presented and signed without you realising that something is missing, or knowing something is missing but not understanding how important it is.
There are also a number of things you are entitled to include before you buy, which is really helpful for clearing up any grey areas about fittings and property fixes. And while we’re on the subject of fixes, you will want to carry out a third party property inspection before you buy.
If you are really keen on making an offer for a property and want to get in quickly, you can make your offer in advance and note that it is dependent on the outcome of the pest and building inspection. Ask your conveyancer on how to word this so you are fully covered and able to withdraw your offer if you don’t like the outcome of the inspections. Your conveyancer can also help you negotiate any corrections the vendor will manage before settlement or any price reductions that may come in at the inspector’s advice and make sure any discussions are translated into writing as part of the sale contract.
Your conveyancer will be the person you contact if things are not looking as you expected when you do your settlement inspection. Talk to your conveyancer about settlement inspection, if they are covered in the cost and what their process is if you contact them to say something is wrong the week before settlement.
Your conveyancer will be tracking your online settlement and making sure everyone is doing their part to complete settlement on time.
Ask them about their check-in process (how often and for how long) and follow up process, especially time consuming ones, for example if the other conveyancer hasn’t submitted signatures or if there are errors at the bank’s end.
Delayed settlement can cancel out the sale or costs thousands in additional fees and fines, so it’s a very stressful and quite an anxious time for sellers and buyers alike. What I’ve done to help my clients and provide access and reassurance is to create my own app (well, okay I didn’t do that myself I am not able to code, but I had it created for me). It’s a settlement tracking app that has a secure connection to allow you to check the status of your settlement application 24/7. It’s just for peace of mind and means you can get information even when our office is shut for the night.
Your conveyancer can help explain and calculate all your payment obligations. Be sure you understand the government fees and charges that also come at the point of final title transfer.
If you are buying, the home deposit will go to your conveyancer’s office and will be kept in a trust account there. Before settlement your conveyancer will determine the adjusted rates and taxes to be paid as well as liaise with your financial lender on the final payment on the day and specified time of settlement.
The settlement period will be determined between the buyer and seller and will be part of the sale contract that is signed by both parties. The usual period is typically 60- or 90 days, however, you can negotiate for this to be altered in advance.
It’s typical for new homeowners to be so caught up in making the final property payments they forget about their other financial requirements. Make sure you have funds available to cover your conveyancing as well as the government fees and charges. If you are eligible for concessions then this needs to be organised well in advance (before settlement is finalised) so it can go through smoothly.
When deciding on your conveyancer look at your budget as well as the type of property transaction you are handling.
Knowing what the fees are going to be in advance puts your mind at ease for what your conveyancing services are and helps you prepare for the final bill.
Make the time to call or visit your conveyancer to have all the facts straight before you get started.
NSW Conveyancing Licence No. 06003420
VIC Conveyancing Licence No. 002111L
