What is Conveyancing?
Conveyancing describes the ownership transfer process of real property (that is, land). If you are selling a property, the law requires you to prepare and disclose matters and documents before you can proceed with a sale. If you are buying a property, your representative needs to prepare the transfer and thoroughly inspect what you are buying; the last thing you want is a surprise. Conveyancing is replete with unforeseen dangers – not the least of which is compliance with the many laws that affect a transfer of real property.
What is a Vendor’s Statement or s32?
The Section 32 is a document provided by the seller of real estate (Vendor) to an intending Purchaser. Its name comes from Section 32 of the Sale of Land Act, which requires a Vendor to provide certain information to a Purchaser BEFORE a contract of sale is signed.
Should the vendor fail to provide the information required by the Act before the contract is signed, the Purchaser will be able to cancel the contract. Of course, there are exceptions to this rule, and purchasers should not assume that any “technicality” will allow them to end the contract.
Before a contract is signed is the best time to get legal advice from a qualified lawyer, as the opportunities to end the contract can be severely limited if legal advice is sought after the sale has been finalised.
Lawyer or a Conveyancer?
Buying or selling property is one of the biggest financial transactions of your life. Due to the financial and legal aspects of transferring property, the consequences of making a mistake can be both costly and heartbreaking.
By having a lawyer take care of your property transfer, their qualifications and experience can help protect your assets.
A lawyer can also provide a full range of legal-related services including: wills, powers of attorney, probate and conveyancing. In contrast, a conveyancer can only do the conveyance. With Action Conveyancing standing beside you as your partner in property, you have peace of mind whether buying or selling.
What is the cooling off period and how does it affect me?
A cooling off period is the right of a Purchaser of property to cancel the agreement within 3 working days. It offers some protection to purchasers that may have rushed into a contract to purchase property. Should a purchaser exercise their right to “cool off”, they will be entitled to their deposit less $100.00 or 0.2% of the total purchase price (whichever is greater).
The cooling off period does not always apply, for example if a property was purchased at auction.
What is a Verification of Identity?
New laws have been introduced nationally to prevent various forms of property theft and cyber-crime associated with real estate and home loans. It is now a requirement for any person (including corporations) involved in a property purchase or sale to undergo Verification of Identity (VOI) and to provide a Client Authorisation to their legal representative for the purposes of registration of documents and the assessment of stamp duty.
If you are in Melbourne, you can book an appointment with us to verify your identity in person or alternatively, we can provide you with a VOI form and you can have your identity verified at Australia Post (for an additional fee).
What is a disbursement?
A disbursement is one of the expenses incurred during the process of searching and obtaining a certificate from local government authorities or local councils. These are used to either complete the Vendor’s statement or to verify the information in a Contract of Sale.
What happens at settlement?
Settlement is the finalisation of the sale or purchase process. There are usually four parties involved – the Vendor’s and Purchaser’s representative, the mortgagor on Title and the incoming mortgagee (if applicable).
As of 1 October 2018, all settlements are to take place electronically. Each party uploads the required documentation (such as the Transfer and the Discharge of Mortgage), then balances the financials and signs off before the settlement time. Should one party fail to complete their part, settlement will automatically get pushed back an hour.
Who notifies the authorities that I have purchased a property?
After settlement has occurred, we notify the council, water and State Revenue Office of the change of ownership of the Property on your behalf. Other providers, such as electricity and gas, will need to be notified by the Vendor and/or Purchaser.