March 9, 2017 | 490 viewsConveyancing Frequently Asked Questions

Conveyancing Process Step By Step – For Sellers

 

  • The conveyancing process will begin once all parties have signed the Contract. You will need to provide the contact details of your solicitor to the agent who will then arrange for a copy of the executed Contract to be provided to your conveyancing solicitor.
  • If the property is mortgaged, you should immediately provide your bank with a completed mortgage discharge form. These can usually be obtained online or alternatively you can attend a branch to arrange for the release of mortgage. Ensure that you also provide the contact details of your solicitor so that they can arrange for Settlement on your behalf. B. if you do not advise the bank of your solicitor, they may be unable to speak to your bank or arrange for settlement on your behalf. This could in turn cause delays in settlement.
  • You should be sent an initial documents pack from your solicitor outlining critical contact information and the due dates. There will likely also be a number of documents that you will need to complete and return.
  • The Contract will likely be subject to a 5 business day cooling off period. Within this period, the Buyer is entitled to terminate the Contract for whatever reason. Should the Buyer terminate under the cooling off period, you are entitled to claim a penalty of 0.25% of the purchase price.
  • From there, your solicitor will ensure all payments are made on the due dates and will follow up the Buyer’s solicitor on any due dates (i.e. finance and building and pest). If the Buyer requests an extension, your solicitor will need to be able to contact you to seek your instructions.
  • During the conveyancing process, you will be sent the Transfer documents for your execution. You will be required to sign these forms in front of a qualified witness (Justice of the Peace, Solicitor etc).
  • Your bank will confirm with your solicitor once settlement is ready to be booked in. Assuming that you have returned all the banks required documents; you should not need to do anything further at this point in order to proceed to settlement.
  • Your solicitor will arrange for settlement with the bank and the Buyer’s solicitor. They will also calculate the settlement adjustments (i.e. rates and water adjustments) and attend settlement on you behalf or arrange for a settlement agent to attend.
  • Your solicitor will contact you to confirm once settlement has been effected.
  • Ordinarily, any outstanding commission fees will be paid to the agent by cheque drawn at settlement.
  • You should arrange for any insurance on the property to be cancelled once you have received notification that settlement has been effected.

Conveyancing Process Step By Step – For Buyers

  • The conveyancing process will begin once all parties have signed the Contract. You will need to provide the contact details of your solicitor to the agent who will then arrange for a copy of the executed Contract to be provided to your solicitor. It is strongly recommended that you provide a copy of the draft Contract to your solicitor for review prior to signing.
  • The property will be at your risk from 5:00pm the business day after the Contract Date. It is therefore recommended that you immediately arrange for insurance over the property.
  • If you are obtaining finance to complete the purchase, you should immediately . These can usually be obtained online or alternatively you can attend a branch to arrange for the release of mortgage. Ensure that you also provide the contact details of your solicitor so that they can arrange for Settlement on your behalf. B. if you do not advise the bank of your solicitor, they may be unable to speak to your bank or arrange for settlement on your behalf. This could in turn cause delays in settlement.
  • You should be sent an initial documents pack from your solicitor outlining critical contact information and the due dates. There will likely also be a number of documents that you will need to complete and return.
  • The Contract will likely be subject to a 5 business day cooling off period. Within this period, you are entitled to terminate the Contract for whatever reason. Should you elect to terminate under the cooling off period, you may be liable to pay the Seller a termination penalty of 0.25% of the purchase price.
  • Your solicitor may provide you with a “search checklist”. This checklist will outline what searches are available for the property, what each search shows and the price to conduct each search. There are a number of standard searches that must be undertaken in order to confirm the contract details and for settlement adjustment purposes. You should discuss with your solicitor any specific concerns you may have about the property. Your solicitor can then recommend any searches that may be applicable.
  • Should the Contract be subject to a satisfactory Building and Pest report, you will need to arrange for a licenced inspector to attend the property and provide a report by the due date. You will then need to provide a copy of the reports to your solicitor and advise them whether you are satisfied with the results of the report. If you are not satisfied with the reports, you may be able to request a reduction of the purchase price, request that the Seller fix specified issues prior to settlement or terminate the Contract.
  • If you are obtaining finance to complete the purchase, you should immediately provide a copy of the Contract to your financier and advise them of the due date for finance. You should provide a copy of your finance approval to your solicitor immediately upon receipt. If you have not provided your solicitor with confirmation of finance approval by the due date, they will contact you to seek you instruction.
  • If you anticipate that your finance will not be approved by the due date, you should immediately contact your solicitor to advise them of the date to which you expect an extension will be required. N.B. it is up to the Seller’s discretion as to whether they approve any extension requests. You should therefore do everything you can to ensure that the results of your finance application will be received by the due date.
  • Once finance is approved, your bank will provide you with a number of loan documents for you to complete. Ensure that you return the completed loan documents to your bank as soon as possible as any delays in returning the documents may result in delays of settlement.
  • Your solicitor will draft the Transfer documents based on the information you have provided to them. They will then arrange for the Transfer document to be executed by the Seller. Your solicitor will likely sign the Transfer documents on your behalf.
  • Your bank will confirm with your solicitor once settlement is ready to be booked in.
  • Your solicitor will arrange for settlement with the bank and the Buyer’s solicitor. They will also calculate the settlement adjustments (i.e. rates and water adjustments) and attend settlement on you behalf or arrange for a settlement agent to attend.
  • If your bank will not be providing sufficient funds to cover settlement and you have not provided your bank with an authority to draw funds from another nominated account, your solicitor may request that you transfer any shortfall funds into their trust account.
  • Your solicitor will arrange for the Transfer and Contract documents to be stamped with the Office of State revenue.
  • Your solicitor will contact you to confirm once settlement has been effected.
  • Your solicitor will advise the real estate agent once settlement has been effected. The agent will then release the keys to the property to you.
  • Ordinarily, cheques will be drawn at settlement to pay any outstanding local authority invoices, such as rates and water. Your solicitor will then forward payment to the relevant authorities.
  • The Transfer documents will be handed to your bank at settlement who will then attend to lodgement of the documents with the Titles Office. You should contact your bank one month after settlement has been effected if you have not received confirmation of the Transfer being registered.
  • If you are not obtaining finance to complete the purchase, your solicitor will attend to lodgement of the Transfer with the Titles Office. They should provide you with a confirmation of registration in the weeks following settlement.

How Long Does Conveyancing Take | Buying a House Timescales

The conveyancing process will begin once all parties have signed the Contract. The period between when the Contract has been signed and settlement will depend on the terms of the Contract. However, settlement is often 30 or so days from the date of Contract.

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