What is the Conveyancing Process When Buying a House?
Purchasing property is an exciting investment into your future. It is a big decision and comes with a repertoire of legal processes to protect you as the purchaser, as well as the seller. You may have heard the term conveyancing used in the process of property transactions. But what is a conveyancer and how does it relate to buying a home? What is the conveyancing process? Keep reading as we break down the legal process of purchasing a house.
What is Conveyancing?
Before we go into the process, we need to understand what conveyancing actually is. Put simply, conveyancing is the area of law, or legal process, that prepares documents for the transaction of property. The procedure ensures that both parties interests are protected and represented fairly, as well as ensuring that the transaction follows the relevant legal guidelines.
The Conveyancing Process: Purchasing Property
The process for purchasing property can be quite lengthy. It is in place to ensure that everything that happens throughout the transaction is done correctly, so nothing is overlooked. There are a few things that can help the process along, including using a PEXA-accredited conveyancer. The process can differ according to individual circumstances, but follows the same general principles or steps.
The Contract is Drawn Up
After you have agreed on a price and have decided to purchase the property, a contract of sale will be drawn up, usually by a real estate agent. This will be fully explained to you by your legal representative. The contract will outline the terms and conditions of sale and can have changes made, or clauses added by your solicitor. Once every person has signed the contract (both you as the purchaser and the party selling the property), it is legally binding and marks the beginning of the conveyancing process.
Inspections are Carried Out
At this stage, there are a number of inspections that can be carried out upon the property to ensure its in the optimum condition for purchase. Generally the contract will include terms that rely on these tests coming back in a positive light. For example, a pest inspection and building report; these inspections ensure that the home is structurally sound and have no infestations of pests such as termites that can affect the integrity of the property. You may also choose to have a surveyor come to inspect the boundaries of the property, as well as arranging an inspection from the council, to ensure the property adheres to their restrictions.
Financing is Finalised
At this stage you may have completed preliminary steps towards a mortgage for the property you are purchasing. Here, you would provide them with the essential information on the property that you are purchasing. For example, the exact price that the contract was signed for, the address and any other documents that the financial institute may need you to provide.
Exchange of Documentation
At this stage in the process, important documentation is then delivered from solicitors, to the property seller and buyer. This may include the final exchange of contracts, the investigation of titles, transfer documents and more. Here is where your solicitor can assist you in ensuring you complete the most appropriate procedures and forms. If your solicitor is PEXA accredited, then the forms can be lodged online and the progress tracked instantly. Without this accreditation, you may have to wait for postage and handling times, alongside processing and clearing periods.
Once all of the above is done and the fine details are sorted out between your solicitor and the seller’s, your new property is officially yours! A final titles search will be conducted, to ensure that the title of the property is in your name. Once confirmed, all of the transfer documents are handed over, the final balance to pay is given, payment is made and you can pick up the keys and enjoy your new property purchase.
The process may seem overwhelming, but having the support of a legal team ensures that you have peace of mind and a safety net. Conveyancing is very document heavy, but it is a process well worth investing in as it can cause repercussions into the future if the process is not completed properly.