Conveyancing
When buying or selling your home, commercial premises or investment property having the right legal advice can save you thousands of dollars. At Conditsis Lawyers our team of Licenced Conveyancers offer a full conveyancing service to ensure your interests are protected and your property transaction runs as smoothly as possible.
For fast, efficient and accurate conveyancing services make an appointment with one of our Licenced Conveyancing team today. Contact Conditsis Lawyers on (02) 4324-5688 or email enquiry@conditsis.com.
Our 8 Step Conveyancing Process for Buyers
Step 1
Once you have found the ideal property and your offer is accepted, the Vendor’s Licenced Conveyancer/Solicitor will forward us the contract.
Step 2
You should notify your mortgage lender that you have a property you wish to purchase. They will then arrange a valuation to assist in your loan approval. We will usually organise
pest and building reports.
Step 3
After we have received the contract we will review the contents and prepare a letter of advice which we will send to you with the contract for your signature.
Step 4
Once you send us your signed contract we will arrange for EXCHANGE (that is, when the vendor and purchaser enter into a binding contract). We will contact you to let you know contracts have been exchanged and we will order all the necessary property searches and inquiries. You should sign your loan documents as soon as possible to avoid delays with settlement.
Step 5
Once we have received the outcomes of the property inquiries, we will let you know the settlement figures and the balance payable to the Vendor. Apart from the strata levies, you will also need to make adjustments for council, water and strata levies for the current billing period.
Step 6
We will book a date for SETTLEMENT, although you are not required to attend. You should arrange insurance and contact the agent to organise a final inspection of the property.
Step 7
We will attend settlement and will contact you once it is complete. You can then attend the agent’s office and collect the keys to your new property!
Step 8
Your bank will then register the necessary documents and they will hold the Title Deed until the loan is paid in full.
GLOSSARY OF TERMS
Certificate of Title
The legal document that shows the owner of the property.
Completion
When the change of ownership of a property has occurred (ie once the conveyance is completed).
Contract
A Contract for the Sale of Land is the legal document that sets out the terms and conditions of the sale. It is prepared by the sellers solicitor, but is able to be altered by agreement prior to the Contracts being exchanged.
Conveyancing
The act of transferring property title from one person (the Vendor) to another (the Purchaser).
Cooling-Off-Period
A certain period of time which commences immediately after entry into certain Contracts during which the purchaser may rescind the Contract, usually subject to a small monetary payment to the other party. The cooling off period only applies to residential properties and can be waived.
Counterpart Contract
The sellers solicitor prepares two identical copies of the Contract; the purchaser’s copy is called the counterpart and has copies of the original documents contained in the sellers copy of the Contract.
Deposit
The purchaser pays a 10% deposit on or before the exchange of Contracts.
Discharge of Mortgage
If the seller has a mortgage on the property, their solicitors need to arrange for this mortgage to be removed from the title. This is done by organising the bank or finance provider to provide a ‘discharge of mortgage at settlement’ document.
Easement
A right in relation to a property held by a person other than the owner. There are many types of easements and most are recorded on the Certificate of Title.
Exchange of Contracts
When each party receives the other parties signed Contract and the Contracts are dated, this is referred to as ‘exchanging Contracts’. At this point in time, legal obligations are formed.
First Home Buyer
In NSW there are two government schemes to assist first home buyers. Once given an exemption or reduction in the stamp duty payable and the other scheme provides a cash grant.
Gazumping
This occurs when the seller accepts an offer (which is usually higher) from another buyer prior to the exchange of Contracts. This means the initial buyer misses out on the property.
Joint Tenants
When a property is owned jointly by two or more people. If one of the joint tenants dies, then their share of the property automatically passes on to the surviving joint owner, no matter what is said in the deceased’s Will. (Compare with Tenants in Common).
Mortgage
When a property owner borrows money from a bank or finance provider there is usually an agreement giving the finance provider certain rights in the property. These rights are recorded on the title to the property by a document called a mortgage. These rights include the right to sell the property if there is money outstanding on the loan.
Office of State Revenue
Is a state Government office that receives stamp duty payable on a conveyance.
Purchaser
The person buying a property.
Real Estate Agent’s Commission
The fee charged to the seller by the real estate agent.
Registration
Once settlement has occurred, the title documents are sent to the Lands Title Office to be registered to the new owners. On registration, a new Certificate of Title is produced which showing the new owners of the property.
Requisitions
These are questions asked by the buyer’s solicitor regarding the property. The questions are asked after the exchange of Contracts. Any incorrect answers may give the buyer certain rights against the seller.
Settlement Date
This is the agreed date when the change of ownership occurs.
Settlement Statement
This is a document produced by the purchaser’s solicitor outlining the total amount required to complete the purchase. The settlement statement includes any adjustments such as local council rate adjustments etc.
Special Conditions
These are extra clauses included in the Contract.
Stamp Duty
The State Government tax on the purchasing of real estate. It is to be paid by the purchaser.
Strata Title
The type of title that applies to units or flats.
Survey
This is a document produced by a surveyor showing the exact location of the boundaries of a property and any house, garage etc that lies on that property.
Tenants in Common
Where a property is owned jointly by two or more people. When one of the owners dies however, their share passes according to their Will and will not automatically pass to the surviving owner/s. (Compare with Joint Tenants).
Torrens Title
A modern system that shows ownership of real estate in NSW. A Certificate of Title is issued by the Lands Title Office and the person named on the title is the owner of the property.
Transfer
A document produced by the buyer’s solicitor which both parties sign that shows the property, the name of the sellers and buyers and the sale price. When this document is registered in the Lands Title office, the transfer of ownership to the buyer takes place.
Vendor
Another name for the seller of a property.
FREQUENTLY ASKED QUESTIONS
1. What do I do if I want to sell my property?
To sell your property you must prepare a contract for sale. That contract is a pro forma contract to a large extent, however, depending on any special factors relating to your sale you may also need to include in that contract special conditions relevant to your property. You must also enclose certain prescribed documents including a Section 149 Certificate and drainage diagram in accordance with conveyancing laws. Once the contract has been prepared you can offer the property for sale through an agent of your choosing. They will show people through your property and initiate a sale.
2. What do I do if I want to purchase a property?
If you have found a property that you are interested in purchasing you need to negotiate a purchase price with the seller of that property (vendor). You should then arrange for us to look at the Contract.
3. What do I do when I am buying a unit/townhouse?
Buying a unit/townhouse will usually mean that you are buying into a “strata property”. This simply means that whilst you own the unit you have purchased, a body corporate will own and manage the greater part of the building and any common property (common parts of the property used by all owners). As it is the responsibility of the body corporate to repair and maintain the building and its facility, you as an owner of part of that building will be required to contribute some costs towards any repairs and maintenance. “Your unit entitlement” will determine what contribution you are required to make to the costs of any such repairs. You will also be invited to attend the general meetings of the body corporate to vote for matters raised in relation to the care and maintenance of the building. Upon looking at the contract, we will be able to advise you more specifically and as to how the contract impacts on the above.
4. Why do I need a solicitor?
We will be able to advise you on the property you are purchasing including instigating a number of the initial searches required. For example, in relation to a sale we can order the Council certificates and drainage diagrams and provide appropriate special conditions for inclusion in the contract. For your purchase we can instigate pest, building, survey and building reports on your behalf and advise you in relation to the outcome of those reports.
If complicated issues arise throughout the transaction we will be able to assist you to resolve them.
5. What preliminary reports should I be obtaining?
If you are purchasing a property you should obtain a pest report and a building report in relation to any buildings on the property before exchanging contracts. If you are purchasing a unit/townhouse it is also beneficial for you to obtain a strata inspection report which will give the information you should know about your actual unit, the body corporate and the building as a whole.
You should also give consideration to obtaining a survey report and building certificate from Council to confirm that the buildings on the property are wholly within the property boundaries and there are no illegal structures.
6. What if I need finance to help in my purchase?
You should arrange any finance that you require prior to formally exchanging contracts. Your bank will be able to discuss how much you can borrow and on what terms. If you need assistance we can refer you to certain lenders who may be in a position to discuss with you proposals for loan finance.
7. What stamp duty is payable?
Stamp duty is payable under the Stamp Duties Act, to the government on the purchase price of the property. It is also payable on any mortgage you obtain from your lender. Stamp duty is calculated on a scale and we can give you more specific information in relation to the actual stamp duty payable when we are aware of the purchase price and the amount of money being lent to you by the bank. First home buyers may be eligible for a discount in respect of stamp duty.
8. What costs will be involved?
You will incur legal costs as well as disbursements. The legal costs will include all work done by a solicitor including preparation of a contract, attending with you on numerous occasions including to explain the contract, to correspond with the other party and your financier and all work incidental to having your matter completed to settlement. Disbursements will be additional to those costs and include things such as payment for searches to a third party, photocopying, faxing, bank fees and general office disbursements. (Costs may also depend on the complexity of your matter). You will be given details of our costs and disbursements at the beginning of the matter.
9. Do I pay GST on the purchase price from 1/7/2000?
Generally, if you are buying an existing house, unit or land (on which you intend to build) which will be your principal place of residence, then that transaction will not attract GST. There are other situations where GST applies to conveyancing transactions.