Frequently Asked Questions about Conveyancing
Q: What is conveyancing?
A: Put simply, conveyancing is the legal process of transferring the title of a property or a business from one person to another.
Q: Why should I use a conveyancer?
A: 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 licensed conveyancer take care of your property transfer, their qualifications and experience can help protect your assets.
A licensed Conveyancer has an in-depth understanding of the law concerning property transactions, is required by law to carry professional indemnity insurance and fidelity insurance, and unlike certain solicitors that offer conveyancing, can focus solely on property transfer instead of other legal matters.
Q: What is a disbursement?
A: A disbursement is one of the expenses incurred during the process of searching and obtaining a certificate from local government authorities or local councils etc.
Q: What happens if either party cannot settle on the due date?
A: The Purchaser or buyer can issue a ‘Notice to Complete’ which means the vendor or seller has 14 days (including weekends and public holidays) to settle the matter. If left unsettled, the purchaser has the right to terminate the contract and is eligible to receive their deposit back. The purchaser may also apply to the Court to have the vendor complete the agreement and hand over possession.
If stipulated in the contract, the vendor is entitled to charge the purchaser interest for the number of days settlement is delayed. The contract usually stipulates the applicable interest rate. When a ‘Notice to Complete’ is issued by the Vendor, the vendor may terminate the contract and keep the deposit, and can legally place the property back on the market to sell.
Q: What happens at settlement time?
A: Settlement is the finalisation of the sale or purchase process. There are usually four parties involved – the buyer and sellers’ conveyancers and the banks for the vendor and purchaser.
On settlement, the purchaser’s bank will exchange cheques as per the instructions of the buyer’s conveyancer and in return, receive the Certificate of Title and ‘discharge of mortgage’ (if applicable) from the seller’s bank.
Once settlement is complete, the keys can be handed over to the purchaser and the deposit is released (from trust) to the seller. At this stage, the buyer’s bank registers the change of title and mortgage.
Q: Who notifies the authorities that I have purchased a property?
A: When your transfer papers are lodged for registration after settlement, the council, water authority and office of the valuer general are automatically notified of the new purchase. Other providers, however, will need to be notified.
For low fee conveyancing that is available when you need it contact Debbie Hutton Conveyancing.