If you’re new to the property market or you just don’t know where to start with the purchase or sale of a property, a conveyancer makes sure that the legal requirements are met when you buy and sell a property. Conveyancing is the transfer of legal ownership between the buyer and seller. The legal document to do this is a Contract of Sale, which is legally binding.
Conveyancing Lawyers make sure that you become the legal owner of the land when buying or selling and that you meet all your disclosure obligations and have a legally binding Contract of Sale. le.
Here are seven ways that a conveyancer can help you with a property purchase or sale.
One of the main reasons you need a lawyer is to ensure that you understand and comply with your contractual obligations. If you don’t there can be harsh financial consequences such as penalty interest; loss of deposit; and defaults that incur additional costs and exposure. Only a lawyer can offer you extensive legal advice in the event of a default or if you cannot settle on your property on time. Conveyancers’ liability insurance only covers them for a limited scope of work and their knowledge and negotiation skills may not be extensive enough should an issue arise.
Legal Paperwork and Document Handling
One of the most important jobs of a property conveyancer is preparing all documents that are needed for your sale or purchase. When you are selling we make sure that you meet your disclosure requirements in the Vendor’s Statement so that the Contract is legally binding. We also prepare the Contract of Sale.
We prepare all the documents so that the property can be transferred from the Vendor to the Purchaser. If we are acting for the Purchaser we make sure that the contract is complied with. We work out settlement figures and ensure that you become the registered proprietor without any money (rates etc) owing as at the day of settlement.
We also calculate the Stamp Duty and ensure this is paid with the relevant authority. Sometimes there are Stamp Duty exemptions and we will help prepare this paperwork as well.
Searches and the Statement of Adjustments
Your legal representative will do searches to make sure you can become the legal owner on settlement day without any monies owing as at the day of settlement. It doesn’t mean all monies are paid – it just means that the buyer and vendor both pay their share for the time they owned the property. This is calculated in what is called the Statement of Adjustments.
A conveyancing lawyer conducts searches to check what is outstanding for rates and taxes etc. As taxes and rates “go with the property” it is important that rates are adjusted so that the purchaser does not inherit the Vendors share of monies owing.
You can do additional searches if needed, some examples of these are bushfire zones; heritage registers; EPA (Environment Protection Authority) Search and building permit searches etc. If you need more information on your property you can always request these searches be done. You can get these done before you purchase as well.
Contract of Sale (& Vendor Statement) Preparation
If you’re the vendor, a property lawyer will prepare your Contract of Sale and make sure that all your special requirements and conditions are included in the final contract. It’s essential to have a solid contract in order to ensure a smooth settlement. In Victoria we also prepare the Section 32 or Vendors Statement. This contains relevant and essential property information and if it is not correct or is missing information it can make the Section 32 defective and could give the purchaser the ability to cancel the contract.
Contract of Sale Advice
If you’re buying a property, your conveyancer can review the Contract of Sale to look for any potential errors or unusual clauses and provide you with some advice before you enter into the Contract. They’ll inform you of what is in the contract and any special conditions. We can give you advice on special conditions which can be added to protect you or customise the Contract to your offer. It’s essential to understand the contract before signing it, as most people don’t understand the fine print or what is contained in the Section 32 (vendors Statement). It is easy to overlook key information that may impact your investment and finances.
We also provide you with other key information that will help you to make an informed decision when buying a property. Contract Advice is usually a separate service.
Dealing with your Lender
Conveyancers play a vital role in arranging settlement with your bank or lender. They co-ordinate the process by ensuring that your bank receives all the required details and documents for settlement. If there are any adjustments and payments to be made as part of the settlement, your conveyancer will calculate these amounts for you. Your lender will not fully approve your finance until certain documents have been provided to them, so a good lawyer will start this process early and stay in contact with them along the way.
It’s part of a lawyer’s role to co-ordinate settlement with all the relevant parties. Your conveyancer will arrange settlement and contact your bank and other parties in order to ensure you’re able to settle on settlement day. It’s essential that you find a property lawyer that’s experienced, skilled and efficient to handle your matter successfully with the utmost care.
If you need an experienced Conveyancing Team to handle the sale or purchase of property, call PCL Lawyers today on 1300 907 335 or simply fill out the contact for on this page and we will get right back to you.