Checking your contract for sale
You need to be happy with your contract for sale before you proceed with your conveyance. “The contract for sale” is the legal document that describes the property, including the purchase price, details of the seller, buyer, real estate agent and conditions to the transaction. The contract will also contain special conditions, warranties and implied terms, which your solicitor will explain to you and ensure you understand and are satisfied with them. Various papers and certificates also need to be attached to the contract including:
- A title search from the NSW Land and Property Information, which provides proof of ownership
- A local council certificate
- A plan showing sewer lines from Sydney Water of a local authority
- Copies of other documents showing and restrictions to the use of land
- Building and pest inspection reports
- A survey to ensure measurements of the property are the same as the title
- A strata inspection report if the property is part of a strata scheme, such as units or townhouses)
The contract for both the purchaser and the vendor need to be identical before proceeding to the next step.
This is the exciting part where the vendor and purchaser check, sign, date and swap contracts with the vendor paying the balance of the deposit monies.
Preparations before settlement
“Settlement” is the culmination of the conveyancing process where solicitors for the vendor (selling party) and purchaser (buying party) meet with their respective bank representatives to exchange legal deeds, pay the balance of the purchase price and complete other payments such as stamp duties.
Before this takes place however, a number of steps need to be completed, including:
- Requisitions on title, which is asking the vendor about the property
- Arranging payment of taxes such as stamp duties and land tax
- Preparing and examining any mortgage agreements, if you need a home loan
- Checking whether any government authorities have an interest in the land or if there are any planned developments which could affect the property
- Final Inspection and finding out any information that may have not been previously disclosed such as fence disputes or illegal building work
- Calculating adjustments for council and water rates
You are now ready for the big day! Everyone now gets together to make the final exchange of documents and payments to complete the conveyance. If all the checks and inspections have been made properly, the settlement will usually be a smooth and quick transaction.
Other than the reward (and most often relief) of completing your conveyance, you will still need to lodge your legal documents with the Land and Property Information to formally register the change of ownership of the property. As a purchaser you may also need to inform the relevant authorities that you are now the new owner, such as the owner’s corporation if you have purchased a unit.
Costs to Consider
Apart from legal fees, there are quite a number of costs in a conveyance such as property insurance, taxes and stamp duties. You will be in a much more comfortable position to get the most out of your conveyancing experience if you have a realistic idea of how much it will all cost. Speak to us at Luchetti & Co and we will discuss these costs and fees involved in your conveyance.
The Conveyancing Network
Apart from your solicitor, there is a large body of people, organisations and government departments involved with the conveyancing process, including:
- Pest and building inspectors
- Sydney Water
- The Land and Property Information (NSW)
- The Office of State Revenue
- Local Council
- The Roads and Traffic Authority
- Financial representative where there is a mortgage involved
- Insurance company
Conveyance with Confidence!
Conveyancing may seem to be a rather clerical, time consuming and even impersonal process. However, with Luchetti & Co . to guide you every step of the way, we can enure your conveyance is a rewarding and even exciting experience. Remember the better informed you are, the better you can conveyance with confidence.