Australia Conveyancing Transactions
Thanks to the many issues involved, conveyancing is a very difficult process in Australia and misunderstood by many people. At this current time every state has different conveyancing processes making it harder and more time consuming for the buyer if buying in a different state. The Australian Government has now ruled that from March 2010 that all states will follow the same conveyancing rules making buying in different states a easier and less time consuming matter. This article aims to explain, in fairly simple terms, the outline of the process.
Conveyancing begins when you sign contracts and refers to the transfer of ownership of a property.
Firstly the contract is signed by the buyer with an offer and then given to the current owner for acceptance. The seller will then either accept the offer or return the amended contract as a ‘counter offer’. It is now the buyer pays a deposit – usually 10% of the sale price.
The buyer is then given a ‘Five Day Cooling Off Period’. Within this time frame, if the buyer decides not to go ahead with the purchase they may terminate the contract. A small administration fee of 0.25% is charged to the purchaser if this occurs.
The next step is to organise the ‘Transfer Papers’. This is normally done by the buyers solicitor. The seller’s signature is needed and, when signed, the transfer documents are then sent back to the purchasers solicitor until the final settlement is made. These documents will finally be lodged at the Titles Office where the transfer to the new owner will be made.
In between the cooling off period and the settlement all property inspections, land enquiries, requisitions on title and assessments will be dealt with. Purchasers should use this time to ensure nothing is amiss with the property.
If a mortgage is necessary by the purchaser then use this opportunity to make enquiries before finalizing the terms of the mortgage. The buyer must also ensure the property has adequate insurance. If a lender is involved then they will need proof of this insurance.
The ‘Settlement Statement’ is then presented to the buyer detailing exactly what is included in the purchase.
‘Settlement’ is the final part of the process. On the day of the settlement a final search will be done on the property to ensure it is free of any restrictions etc. Once this has been approved, and the transfer of funds has taken place, the title and title deeds will be exchanged and the purchaser gives the settlement cheque to the seller.
Expertly skilled and experienced in the branch of real estate, conveyancers can easily handle and process smoothly the most awkward of conveyancing cases. The conveyancing process usually takes between 4 and 12 weeks, sometimes even longer
Most Real Estate offices now either have their own conveyancing solicitor or can recommend one for you. Choosing the right conveyancing solicitor will ensure you the smoothest conveyancing process possible.
Specialists in Real Estate and all other aspects of purchasing real estate in Australia.