What Does a Conveyancer Do?

A professional Sydney conveyancer is a licensed professional who handles the legal aspects of a property transaction. They help with everything from preparing legal documents to transferring ownership. This article explores what conveyancers do and why their services are essential when buying or selling real estate.

Buying or selling a property is more complex than a handshake or ‘tap and go’ credit card transaction. Whether you’re buying your first home or a seasoned property investor, it’s easy to make mistakes with such a large and complicated contract. If you don’t complete the paperwork correctly, the property may not be legally transferred from the seller to the buyer.

Definition of a Conveyancer

Conveyancers specialise in property law and focus on legally transferring property ownership. They handle the legal work involved in buying or selling property, ensuring that all requirements are met and that the property transfer process and ownership are completed correctly and securely.

Importance of Conveyancing in Property Transactions

Conveyancing refers to the legal process of transferring property ownership from one person to another. For any real estate transaction to be legally binding, the buyer and seller must fulfil all legal obligations. If there’s a mistake in the conveyancing process, it can lead to a range of complications, such as:

• Legal ownership of the property may need to be transferred correctly.
• Buyers may be responsible for outstanding debts or liabilities from the previous owner.
• Property boundaries may need to be defined properly, leading to disputes with neighbours.
• Missed dates in the contract may result in penalties or even termination.
• Missed zoning laws may prevent the buyer from using the property as they intended (this is especially important for redevelopment or business use).

A good conveyancer ensures the property changes hands under the appropriate laws and avoids these critical mistakes.

The Role of a Conveyancer

Conveyancers help both buyers and sellers of a property. We’ll briefly break down the conveyancing services and how they help each party, but first, let’s start with an overview of the general services a conveyancer provides.

Title Search

One of the first things a conveyancer does is investigate the property’s history. Think of it like a background check—they confirm that the seller is the legal owner of the property title and that the property doesn’t have any unpaid debts or legal disputes.

Property Search

A conveyancer conducts local council checks to uncover any restrictions, easements, or zoning issues that could impact the buyer’s ability to use the property once they take ownership.

Legal Documents

Property transactions involve a mountain of paperwork, including contracts, transfer documents, identity verification, and legal agreements—it’s a conveyancer’s job to guarantee that everything is completed properly.

Mortgage Paperwork

Conveyancers work with lenders to coordinate all the home loan paperwork for the buyer. That way, the finances and home deposit will be ready when settlement day begins.

Ownership Transfer

On settlement day, a conveyancer takes care of the official transfer of ownership – including the exchange of signed contracts and the deposit of money into a trust account. They see that all parties meet their obligations and that the property officially changes hands from seller to buyer.

Liaison Role

Throughout the process, a conveyancer liaises with the buyer, seller, real estate agents, and banks to keep everything on track. Their constant communication is critical to a timely sales process without annoying delays.

What Does a Conveyancer Do for the Buyer?

Whether you’re buying your first property or your fifth, having a good conveyancer in your corner is essential. They will:

• Prepare, clarify and lodge legal documents, such as the contract of sale and memorandum of transfer
• Research the property and its certificate of title
• Check for easements and other information that needs addressing
• Make sure each step is completed by the due date
• Calculate rates and tax adjustments
• Hold your deposit in a trust account and make payments on your behalf
• Advise when the property is settled
• Advise your bank or financial institution when payments will be made.

Your conveyancer handles all the costs and behind-the-scenes details, making the buying process as stress-free as possible.

What Does a Conveyancer Do for the Seller?

If you’re selling a property, you can hire a conveyancer to:

• Draft and file precise legal paperwork
• Conduct necessary searches on the property
• Ensure any remaining debts tied to the property are cleared at settlement
• Act on your behalf by responding to requests from the buyer’s conveyancer
• Provide legal advice when needed
• Oversee the transfer of funds and legal documents to make sure the buyer meets their obligations
• Release ownership and finalise the sale.

A conveyancer is responsible for ensuring the sale goes smoothly, and all legal obligations are met, giving you peace of mind during the process.

A Step-by-Step Guide to the Conveyancing Process

A conveyancer plays a larger role in selling a property than most people think. You can break down their involvement into four stages:

Pre-Contract Stage

Initial Consultation

Most conveyancers offer an initial consultation to outline their role, fees, and the steps involved. They get to know you and provide tailored advice based on your needs, so you understand what to expect during the property transaction.

Title and Planning Searches

Before you sign a contract to buy or sell property, your conveyancer will conduct title and planning searches to uncover any potential issues that could affect the property’s value or your plans.

Contract Stage

Contract Drafting and Review

If you’re selling, your conveyancer will draft the contract of sale. If you’re buying, they’ll review the agreement to verify it has been written accurately.

Negotiations

Negotiating the terms of a property transaction can be complex. Your conveyancer represents your interests, whether negotiating the purchase price, settlement date, or specific terms in the contract (such as a sunset clause), confirming the final agreement is fair and that you’re happy with the terms.

Pre-Settlement Stage

Final Checks

Before settlement, your conveyancer performs final checks to confirm that all contract conditions have been met and that no outstanding debts or legal issues could delay the settlement.

Finance Arrangements

Your conveyancer contacts your bank or financial institution, so the money is ready to go. They arrange the deposit and confirm that all payments, including stamp duty and other costs, are correctly calculated and settled.

Settlement Stage

Transfer of Ownership

On settlement day, your conveyancer manages the legal transfer of ownership. They check that all legal documents are signed, payments are made, and the property is legally transferred from the real estate agent to you.

Post-Settlement Activities

After settlement, your conveyancer lodges all necessary legal documents with the relevant state or territory land registry, officially registering the buyer as the land documents’ new owner. They also notify relevant parties, such as the local council and utility companies, of the change in ownership.

Conveyancer vs a Solicitor: What’s the Difference?

Conveyancers and solicitors can sometimes overlap in their roles; however, they are two different professions. While conveyancing is a legal process, conveyancers are not lawyers (although some lawyers may be conveyancers).

Conveyancers are legal practitioners well-versed in local laws and procedures relating to property transfer. Solicitors are fully-fledged legal professionals who can represent you in court. They have a greater, broader knowledge of the law but generally cost a lot more as a result.

Should You Hire a Solicitor or a Conveyancer?

You should hire a solicitor if your property transaction involves causes or disputes. However, for most real estate transactions, a licensed conveyancer can handle the process. Conveyancer fees are typically lower than those solicitors charge, making them a cost-effective choice for standard property transactions.

5 Reasons to Hire a Conveyancer When Buying or Selling Property

If it’s your first time buying a property, you may wonder–do you need to hire a conveyancer? Here are 5 reasons we recommend hiring a professional instead of taking a DIY approach:

1. Mitigate Risks

Buying or selling a property is one of the largest financial transactions you will ever make. There’s a lot at stake if things go wrong. A conveyancer mitigates risks such as hidden debts, title issues, legal disputes over ownership, and restrictions on how you can use the property.

2. Save Time and Stress

Property paperwork can be a nightmare. By handing it over to a conveyancer, you save yourself the stress and hassle – plus, you don’t have to lie awake at night wondering whether all documents were completed correctly.

3. Avoid Delays

Conveyancers keep the process on track so the sale goes according to plan and all deadlines are met. Without one, you might face frustrating delays caused by missed paperwork, unresolved issues, or miscommunications between the parties involved.

4. Get Local Knowledge

Conveyancers will have in-depth knowledge of property laws in your area. Council rules may differ significantly from location to location, so an experienced conveyancer will guarantee you don’t overlook local legal requirements.

5. Leverage Legal Expertise

Real estate transactions are complex. You already have enough to worry about when buying or selling a property without trying to understand all the legalities. Sometimes, delegating to an expert is wiser, so you have peace of mind.

How to Choose the Right Conveyancer

If you live in Melbourne, Brisbane, or Sydney, we’ve made a list of the top 10 conveyancers in each city:

• Check out our list of the best conveyancers in Melbourne here.
• See our top 10 recommended conveyancers in Sydney here
• Discover the best conveyancers we recommend in Brisbane here

You can also use these factors to weigh up all your options and narrow down your choice:

• Qualifications and Licensing: Not everyone can call themselves a conveyancer – they must have a license to operate in their state or territory. You can check their credentials with professional bodies like the Australian Institute of Conveyancers to confirm they meet all legal requirements.
• Experience: You want to avoid a newbie handling one of your biggest-ever transactions. Check for a proven track record over several years and ask about their previous client experience before you make the decision.
• Fees: Conveyancing fees can vary widely, so it’s essential to understand what’s included in the conveyancer cost. Some conveyancers offer fixed fees, which is great for avoiding nasty surprises when they send you the invoice. Always ask for a detailed quote upfront to avoid any unexpected costs later.
• Reviews and Recommendations: Some conveyancers will be better salesmen than at their jobs. Don’t take their word for it or fall victim to a slick sales pitch – check what past customers say in reviews and ask for recommendations.

Conclusion

Conveyancers play a critical role in property transfer transactions, ensuring that the legal process of transferring ownership is handled efficiently and accurately. They manage the paperwork, provide legal advice, and protect your interests throughout the transaction.

Whether buying or selling a property, having a professional conveyancer by your side can take a lot of stress out of the home buying or selling process. Their expertise in property law and the conveyancing process ensures your transaction is smooth, hassle-free, and legally airtight.

FAQs on What Conveyancers Do

What is the Average Cost of a Conveyancer?

The cost of hiring a conveyancer can vary depending on factors like location, the transaction’s complexity, and whether you’re buying or just selling a property. On average, conveyancer fees range from $800 to $2,500, including professional fees and additional costs like property searches and government charges.

How Long Does the Conveyancing Process Take?

The conveyancing process typically takes 6 to 12 weeks. However, the exact timeframe can vary based on factors such as the speed of communication between parties, the complexity of the transaction, and any unforeseen issues that arise.

Can I Do My Own Conveyancing?

Yes, you can do your own conveyancing, but it’s only recommended if you have legal expertise in property law. The process is complex and requires great attention to detail. Mistakes can lead to legal issues or financial losses, so hiring a professional conveyancer is usually the safer option.

What Happens if the Sale Falls Through?

The contract’s terms will dictate what happens next if the sale falls through. You may lose your deposit or incur legal fees. A conveyancer can help you understand your rights and obligations under a signed contract and guide you through recovering your deposit money from any losses or renegotiating the deal.

Do I Need a Conveyancer for Both Buying and Selling?

Yes, it’s advisable to have a conveyancer whether you’re buying or selling property. A conveyancer verifies that all legal documents are correctly prepared and lodged, helps negotiate contract terms, and manages the settlement process, protecting your interests in property purchase and sale scenarios.