Below, are some frequently asked questions about conveyancing. For more information contact Village Green Conveyancing.
Settlement is the finalisation of the sale or purchase process. There are usually four parties involved – the buyer and sellers’ legal representatives 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.
If prior to settlement the property in question has been damaged, there is a sufficient amount of time to take care of discrepancies prior to settlement.
Once the settlement date arrives, 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, and notifies authorities (such as the council and water company) of the change.
The vendor or seller 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.
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, the vendor may terminate the contract and keep the deposit, and can legally place the property back on the market to sell.
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.
Put simply, conveyancing is the legal process of transferring the title of a property from one person to another.
A cooling off period is the right of a purchaser of property to cancel the agreement within 5 working days or a longer period if negotiated. It offers some protection to purchasers that may have rushed into a contract to purchase property and can be used to finalise financial arrangements or perform searches and property inspections. Cancelling the agreement (or rescinding, as it is known) will cost the purchaser 0.25% of the total purchase price.
The cooling off period does not always apply (at auction, for example) and can be waived providing a 66W certificate is signed by a conveyancer or solicitor who has briefed his or her client with regard to the implications involved in waiving the cooling off period.
When your transfer papers are lodged for registration after settlement, the council and water authority are automatically notified of the new purchase. Other providers, however, will need to be notified.
Buying or selling property is one of the largest 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, stressful 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 unlike certain solicitors that offer conveyancing, can focus solely on property transfer instead of other legal matters.