Conveyancers: Making The Australian Dream Run Smoothly

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Buying or selling a property will be an emotional and exciting time in your life. With so much at stake it can be risky if you don’t have the right information or advice. Laying claim to your slice of the ‘Australian Dream’ is becoming harder and will not always be easy or problem free. Your best defence to stopping the dream becoming a nightmare is to arm yourself with the right knowledge and good advice.

To be certain that your purchase or sale runs smoothly you will need to understand the conveyancing process, your rights in that process and those of others involved. This article seeks to set out an outline of what happens when you buy or sell your property. Of course, all property sales will be different and this information is only a starting point for building knowledge and it is crucial that you always defer to your conveyancing professional for specific advice.

The Conveyancing Process

Conveyancing Defined

Conveyancing is, simply, the process of formally transferring the ownership of real property from a seller to a buyer. This process, like any sale, requires the creation of an agreement. In this case, a contract for the sale of land, which forms the centre of the conveyancing process.

A contract for the sale of land is an agreement between a buyer and a seller that details:

the identity of both buyer and seller;
the details of the property being transferred (as well as any other items that will come with the property) and its condition;
the agreed price;
the day on which the full amount will be paid (settlement); and
other rights and particulars such as a ‘cooling-off’ period (see below ‘Cooling-Off Period’) or certain contingencies regarding the availability of finance.

The Contract Drafting Process

The process of drawing up and exchanging contracts will proceed in a manner similar to this:

Estate agent finds a buyer for the property, the buyer and seller will then begin to negotiate over terms of the contract (not all clauses will be negotiable). The draft contract prepared by the seller’s conveyancer will then be amended with the buyer’s details and any other particulars, as well as the sale amount agreed to;
Buyer’s conveyancer will scrutinise the contract and carry out various searches to confirm that the property described in the contract is the one actually being sold. These inquiries will also substantiate that the property is owned by the seller, that it is in good repair and not on land likely to flood or subside;
There may also be further negotiation about “cooling-off” rights. The buyer’s conveyancer may also attend to matters such as ensuring the availability of finance for the purchase; and

The Cooling-Off Period

Contracts for the sale of land may include a “cooling-off” clause. This clause gives the buyer a period (three days in Victoria) in which to decide not to proceed with the contract. If you are the seller, and have already purchased another property based on the sale, the rescinding of the contract will be greatly problematic. In Victoria a cooling-off period will not apply in the following circumstances:

if you received advice from a legal professional before signing the contract;
if the property will be used for commercial or industrial purposes (or, if the land is more than 20 hectares, for agricultural purposes); and
if the purchaser is an estate agent or a corporate body.

Protecting your Investment

A conveyancer will need to make all relevant checks and searches on the land that is being purchased to make sure that the property in the contract is the one being sold and is in the condition stated by the vendor.

Your Conveyancer will make the following checks and searches for you:

Land Information Certificate provided by the appropriate municipal authority;
Form 10 Building Certificate (residential only);
Water Rate Certificate;
Water Encumbrance Certificate;
Land Tax Certificate;
Department of Planning Certificate; and
Vic Roads Certificate.

Some things about the property will not be revealed to you by the seller of the property and it will be up to your Conveyancer to make sure that your investment is protected by making all the necessary checks on the property you are contracting to buy. To protect you, your Conveyancer will carry out the following checks on the property:

Whether the land is polluted or contaminated.

Do I really need a Conveyancer?

The buying or selling of a property is complex as well as risky. The good news is that having a Conveyancer act on your behalf virtually guarantees you that your sale or purchase will go ahead smoothly. You should not think of a Conveyancer as optional, but as a crucial part in making sure your investment does not fall prey to risk.

Whether investing for the future, or buying into the ‘Australian Dream’, hiring a Conveyancer to handle your investment will enable you to feel assured that you’re in good hands. If you’re buying or selling a property, contact Balben Property Transfers and rest assured.

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