Conveyancing is the process where property ownership transfers from the seller to the buyer. It has many different steps that a conveyancer can organize and monitor. Each step has specific requirements and as each is completed, the parties move closer to becoming the former owner and new owner of the property being transferred. Let’s review what those steps include.
Steps Involved in the Conveyancing Process
Step 1 – Contract Signing
Once the seller and buyer agree to the terms of the sale, they both sign a contract that outlines these details. The contract will also contain:
- A cooling off period of 5 business days
- A timeframe to receive building and pest inspection reports
- A timeframe to permit a due diligence investigation
- A further timeframe for finance approval (if required)
Step 2 – Insurance
The buyer assumes property risk on the first business day following the signing of the contract. It is because of this that the buyer needs to have insurance arrangements in place before contract signing.
Step 3 – Deposit Payment
There is a deadline to pay the deposit on the property being purchased. Missing that date can put the buyer in breach of the contract. The contract will outline deposit requirements.
Step 4 – Legal Review
The contract should be handed over to a lawyer for review.
Step 5 – Cooling Off Period
This is the waiting period of five business days. This is the window provided to allow for the contract to be terminated, without either party required to provide a reason. Keep in mind that there may be a termination fee attached.
Step 6 – Finance Approval
If the contract hinges on financial approval, plans must be made with a bank or financial institution in advance to clear this step.
Step 7 – Reports
Contracts that are subject to building and pest inspections and a due diligence investigation stop here until all of this paperwork is completed. The transaction can be canceled at this point if the buyer does not like what these reports indicate.
Step 8 – Searches
There are several standard searches conducted on the property at this point by a lawyer. They may include:
- Title Search
- Registered Land Plan
- Court Register
- Heritage Status
- Land Tax Certificate
Step 9 – Unconditional Status
As soon as the contract becomes unconditional, the financial institution is contacted to arrange for a final settlement. All mortgage documents should be properly filled out and in the hands of the lender before this step can be completed.
Step 10 – Stamp Duty
A stamp duty is an additional fee that is common in property transactions.
Step 11 – Pre-Settlement Inspection
Another property inspection is required before settlement can proceed. The purpose of this inspection is to verify that the property has not changed since the day the offer was made to purchase it.
Step 12 – Settlement
This is where all funds are transferred to complete the sale/purchase of the property.
Step 13 – Post Settlement
Following the completion of the settlement step, lawyers contact all related authorities to inform them of the property transfer.
Step 14 – Compliance
The new owner is now obligated to ensure that certificates are in place confirming the property has a safety switch, smoke alarm, and pool safety certificate (if applicable).
Step 15 – Moving Day
The new owner of the property is now permitted to move into their new home. It may sound like it has been a long time to get here, but once all the steps are completed, the new owner can relax knowing that the conveyancing process ensures that everything required for the property transfer has been done correctly and is legally binding.
For Conveyancing Services, See GKS Law
For conveyancing in Redcliffe, North Brisbane, or North Lakes, contact GKS Law today. They have lawyers on staff who specialise in property law. They can offer you conveyancing services so you don’t have to try to do the paperwork yourself. Get it done right by a professional lawyer, call GKS Law today for conveyancing services.
Conclusion
Conveyancing sounds quite simple on the surface – property title transferring from one person (seller) to another (buyer) – but there are a lot of activities taking place behind the scenes to make that switch in ownership move smoothly and without issue. The best way to make sure this is your desired result is to seek the assistance of a lawyer who provides conveyancing services. That way, you know that every step of the process will be completed properly and all you need to worry about is when the moving company arrives at your door.