Owning your own property is always exciting, whether you are a first-time homeowner or you’ve moved house many times, nest-building, wherever that may be, is a natural instinct and we all enjoy doing it! The reality of actually moving, however, is not so exciting.
In fact, it can be an extremely stressful process – finding the right property within your budget, making sure all the legal boxes are ticked, ensuring the money is in place, agreeing on a settlement date…and that’s all before your home as you knew it is turned upside down and transported elsewhere!
What Is A Conveyancer?
A licensed conveyancer is a property law specialist who focuses exclusively on the legal aspects of property transactions. They handle tasks like checking property details, preparing contracts and transferring funds for a property sale or purchase. Conveyancers are not solicitors and cannot handle other types of legal issues, so for standard property transactions choosing a conveyancer is often a more affordable and straight forward option.
Whilst it is technically possible to purchase a property in SA without the help of a conveyancer, it is strongly recommended to use one due to the complex legal processes involved. Conveyancers not only know the ins and outs of property laws, they know which searches are required and can act as mediators between the parties. They can also save you costly mistakes if contracts and legal requirements are not met.
4 Key Steps of Conveyancing
Conveyancing is the legal process of transferring ownership of a property, and this typically includes a buyer and a seller each appointing a conveyancer to handle the transaction. The key steps include:
- Signing a contract.
- Pre-exchange period (where checks and funds are arranged).
- Exchange of contracts.
- Final settlement
The Initial Stages
This is probably the most exciting part for you – finding your new home! Choosing the area you want to live in and finding a property within your budget is not always as simple as it sounds, and you may need to obtain pre-approval from your bank or mortgage lender in order to be able to afford your new home. When you have found the right place that is within your budget, you make your offer…
Once the seller has accepted your offer both parties need to appoint their own conveyancers. You cannot choose the same conveyancer because they are working for the best interest of their client, and naturally the interests of the buyer and the seller are usually different.
Either the agent or conveyancer prepares the contract, depending on when we are engaged. In which the terms and conditions of the agreement are set out. This contract should clearly outline the agreed price of sale, a settlement date and any specific terms or conditions.
The Pre-Exchange Period
Your conveyancer will now perform various checks and searches on the property, checking the legal title of the property and any local council requirements or unique details that you need to be aware of. While it’s common for sellers to provide building or pest reports, these are not mandatory in SA. However, for any reports provided such as electrical compliance certificates, pest inspection certificates and building inspection reports, the seller is responsible for providing accurate information about the property.
As the vendor, you need to complete a Form 1 by law to ensure that the purchaser is aware of any particulars with the land or property, including details about mortgages, charges, encumbrances and other matters that may affect the property or its title. This form also provides the purchaser with cooling off rights, so they have the chance to walk away if they are not happy. Although, some transactions have no cooling off period such as properties purchased via auction. For Purchasers, it is important to remember that insurance is required from contract date, not after the cooling-off period.
Exchange of Contracts
Once all the parties have completed their checks, legal requirements and signed their side of the contract, the contracts are exchanged between the conveyancers. There is a two-business-day cooling-off period where if you withdraw you may only forfeit $100 of the deposit, but after this time the seller is entitled to keep the whole deposit (usually 5-10% of the purchase price). However, the cooling-off period begins after receipt of Form 1, not contract exchange.
The seller can also sue you for their costs and any loss in value of the property they incur when finding a new buyer. Exchange of contracts is legally binding and locks in the sale.
Settlement & Completion
This is where the conveyancers complete the final steps to transfer the ownership of the property. This includes paying out any existing mortgage on the property, the exchange of legal documents and completing any financial obligations.
Stamp duty, also known as transfer duty, is a state tax payable by the buyer to Revenue SA, and is based on the market value of the property or the purchase price, whichever is higher. Your conveyancer will accurately determine the amount of stamp duty you owe and pay this on or before the settlement date. Once the settlement is complete and all the funds have been transferred, the title deed is transferred to the new owner. In almost all cases, all property settlements in South Australia are conducted electronically.
The Importance of Choosing The Right Conveyancer
Legal procedures can cause a lot of stress – they are complicated, tedious and can work out very expensive, especially if certain matters have been overlooked or are not completed properly. Choosing professional and experienced conveyancers like Blackwood Conveyancing to complete the legal side of your property, whether it’s the sale or the purchase, takes all the stress away from you.
Our specialist team are highly trained and experienced in all the legal aspects of property transactions and can ensure that all the legal requirements are met swiftly and correctly.
We have over 40 years of experience in the field and are proud to provide a highly dedicated customer service to all our clients. We are happy to offer valuable advice on your transaction and provide you with all the necessary help and tools so you can navigate your property transaction as smoothly as possible. Contact our team and let us handle the hard work, so you can concentrate on moving forward.