What is a conveyancer?

You’ve finally found your dream home. Now you have to perform due diligence on the home. The legal process will be part of this and getting you ready to actually buy the home. Buyers will need to provide contact details of their conveyancer to the selling agent. Before you embark on your property journey, it’s a good idea to have one already chosen.

At the moment, you don’t legally have to engage a conveyancer. Due to the complexity of various state and council laws, it is prudent to use a legal representative to go through the legal mumbo jumbo and make sure the contract terms are acceptable. In our experience, choosing the right property solicitor or conveyancer to represent you could be the difference between you getting your dream home or missing out.

This article explains what a conveyancer/ property solicitor is and why using a good one is important for your real estate transaction. Both buyer and seller of a property will engage a licenced conveyancer (or conveyancing solicitor) to navigate through the legal process.

What is conveyance of property?

In law speak, conveyancing is the transfer of legal title of property from one person to another. The sale of land is governed by the laws and practices of the jurisdiction in which the land is situated. It is a legal requirement that contracts for the sale of land be in writing.

A typical conveyancing transaction has two major phases:

The Exchange of Contracts

At this point equitable interests have been created. In real estate, this will happen after both seller (vendor) and buyer (purchaser) are satisfied with the terms of the contract. They have also signed the contract of sale and an agreed deposit has been paid by the buyer. In New South Wales, an exchange of contracts involves two copies of a contract of sale being signed of which one copy is retained by each party. The vendor’s legal representative will hold the purchaser’s signed contract, and the purchaser’s legal representative will hold the vendor’s signed contract.

Completion

Also known as ‘settlement’. The remaining balance of the agreed price is paid and legal title passes, but it’s not as simple as it sounds!

Who are these property gurus known as conveyancers?

A conveyancer is someone who will represent you and work with you when it comes time to buy, sell, transfer or subdivide property. You will appoint them as a licensed and qualified professional to provide advice and information about the sale or purchase of a property, prepare the documentation, make sure the exchange of contracts happens as it should and conduct the settlement process at completion.

Conveyancers don’t have to be lawyers but property solicitors can also undertake this work.

So, what does a conveyancer do for you?

When you hire a conveyancer, it is their job to act on your behalf in the purchase or sale of property. Some of their duties include:

For the buyer:

• Reviewing the Contract of Sale which includes researching the property and its certificate of title, checking for easements, type of title and any other information that is pertinent
• Representing your interest with a vendor or their agent and liaising with conveyancers on the other side of the transaction
• Ensuring that you are prepared for key dates
• Calculating the adjustment of rates and taxes
• Liaising with lenders or banks to ensure the funds will be available for settlement
• Ensuring all your relevant documents are prepared and in order
• Confirming that the bank is ready for settlement
• Settling the property – amongst other things this will include acting on your behalf, attending settlement, advising when the property has settled, contacting your financial institution when final payments have been made

For the seller:

• Compiling and completing a contract of sale and ensuring legal documents are all arranged before the house is marketed for sale
• Representing you and responding to requests from the buyer’s representative
• Ensuring the exchange of contracts happens as it should.
• Confirming that your bank is ready for settlement, if you have a mortgage.  This is particularly important as your bank won’t release the Title to the purchaser unless the mortgage is paid.
• Settling the property – acting on your behalf, attending settlement, advising when the property has settled, contacting your financial institution when final payments have been made

Where and how to find a conveyancer who will suit your needs

As with most professions, not all conveyancers are the same. Do your research and always have a chat with your potential conveyancers to gain a level of comfort.

Personal referrals are always helpful, so ask friends and family if they have used a good conveyancer. Make sure they have actually used them so they can really explain the experience they had with them. If you have no luck here, ask your buyer’s agent, real estate agent or another trusted professional, such as an accountant or mortgage broker. They will have dealt with conveyancers on past transactions. However, again, make sure they have had first-hand experience in dealing with them.

Call or send an email to your list of potential conveyancers and ask a few questions (see below) to find one you’re comfortable with and meets your purchasing or selling needs. Do a background and licence check on your chosen conveyancer to ensure they are legally allowed to represent you and have no formal complaints against them.

Questions to ask your potential conveyancer

• Are you a member of the Australian Institute of Conveyancers? Find NSW practitioners here: Australian Institute of Conveyancers NSW
• What types of property do you specialise in?
• What are the costs, including fees, charges and disbursements? When are they payable? How many contract reviews does the fee include?
• Is there a charge per contract review? If so, how much?
• What electronic systems do you have in place? For example, for the purposes of getting zoning certificate from councils, personal identity requirements, and settlement
• Are you planning to be away/ out of office soon?
• Do you hold a trust account?
• How will communication work between us and how often will it happen?
• How available are you? What is the typical turnaround time for a contract review?

At the end of the day, a good conveyancer should pay attention to detail, have good negotiation skills and communicate effectively. A trusted legal representative is imperative for your real estate transaction because even small mistakes can be costly. Believe us when we say, we have seen small mistakes become big problems!