FAQ

Conveyancing refers to the legal process of transferring the ownership of property from one person or entity to another. It involves the preparation, review, and completion of various legal documents and procedures to ensure a smooth and lawful property transaction.

Conveyancing is typically performed by licensed professionals such as conveyancers or solicitors who specialise in property law. They act as intermediaries between the buyer and seller, facilitating the transfer of property rights and ensuring that all legal requirements are met.

The conveyancing process involves several key steps, including:

1. Contract Preparation: The conveyancer prepares the necessary legal documents, such as the contract of sale, which outlines the terms and conditions of the property transaction.
2. Title Search and Due Diligence: The conveyancer conducts a thorough search of the property title to ensure that there are no encumbrances or legal issues that may affect the transfer of ownership. They may also perform various checks, such as reviewing zoning regulations and obtaining certificates for property inspections and other relevant matters.
3. Negotiations and Amendments: The conveyancer assists in negotiations between the buyer and seller, helping them reach agreements on issues such as the purchase price, conditions, and inclusions/exclusions. They may also make amendments to the contract of sale based on the negotiated terms.
4. Settlement and Exchange: Once the parties have agreed to the terms, the conveyancer helps coordinate the settlement process. This involves the exchange of signed contracts and payment of the deposit by the buyer, as well as the discharge of any existing mortgages or liens on the property.
5. Pre-Settlement and Post-Settlement: The conveyancer arranges for various tasks leading up to settlement, such as conducting final inspections, organizing settlement funds, and preparing settlement statements. On the settlement day, they facilitate the transfer of funds and legal documents between the parties. After settlement, they ensure the registration of the transfer of ownership with the relevant land titles office.

Throughout the conveyancing process, the conveyancer also liaises with other parties involved, including real estate agents, financial institutions, government authorities, and other professionals, to ensure a smooth and legally compliant property transaction.

It’s important to note that conveyancing processes and regulations may vary slightly between different states and territories in Australia, as each jurisdiction may have its specific laws and requirements. Therefore, it’s advisable to consult a qualified conveyancer or solicitor who is familiar with the specific regulations in the relevant jurisdiction.

Buying a property is a significant decision that often involves a mix of emotions and practical considerations. Here’s a more emotional perspective to guide you in making this important choice:

1. Imagine your daily life: Envision your day-to-day in each property. Picture waking up in the bedroom, making breakfast in the kitchen and relaxing in the living room. Which property feels more like a home?

2. Follow your instincts: Pay attention to your gut feelings during property visits. Sometimes, your instincts can guide you toward the place that feels right for you.

3. Visualise future memories: Consider which property seems like the backdrop for the memories you want to create. Can you see yourself celebrating holidays, hosting gatherings, or simply finding joy in the space?

4. Reflect on your lifestyle: Think about how each property aligns with your lifestyle. Does it offer the tranquility you crave or the vibrancy of city life? Choose a property that complements the way you want to live.

5. Connect with the community: Explore the neighbourhood and connect with the local community. Are there nearby parks, cafes or activities that resonate with you? Feeling a sense of belonging can make a significant difference.

6. Consider your long-term goals: Reflect on your long-term aspirations. Does the property support your vision for the future? Whether it’s starting a family, working from home or enjoying retirement, ensure the property aligns with your goals.

7. Evaluate emotional resilience: Think about how the property makes you feel during different seasons or times of the day. A home that provides comfort and joy in various circumstances can be a good fit.

8. Seek advice from loved ones: Share your thoughts with friends and family. Sometimes, those close to you can offer valuable perspectives and insights that you might not have considered.

9. Create a vision board: Compile images, colours and textures that resonate with your ideal home. Creating a vision board can help clarify your preferences and guide your decision.

10. Sleep on it: If possible, take a night to sleep on your decision. This can give you clarity and help you gauge your emotional response over time.

Remember, while emotions are a crucial part of the decision-making process, it’s also essential to balance them with practical considerations like budget, location, and property condition. Take your time, listen to your heart, and make a decision that aligns with your dreams and aspirations.

To apply for finance approval to purchase a home, you typically need to follow these steps:

1. Gather your financial information: Collect all the necessary documents such as proof of income, bank statements, tax returns, employment details, and any other relevant financial documents.
2. Determine your borrowing capacity: Use online calculators or consult with a mortgage broker to assess your borrowing capacity. This will give you an idea of how much you can afford to borrow based on your income, expenses, and other financial obligations.
3. Research lenders and loan options: Research various lenders and loan options to find the one that suits your needs. Compare interest rates, loan features, and repayment terms to make an informed decision.
4. Get pre-approval: Consider obtaining pre-approval before house hunting. Pre-approval gives you an indication of how much a lender is willing to lend you based on your financial information. It strengthens your bargaining power when making an offer on a property.
5. Complete the loan application: Once you’ve chosen a lender, you’ll need to complete a loan application form. Provide accurate and detailed information about your financial situation, the property you intend to purchase, and any other required details.
6. Provide supporting documents: Along with your application, you’ll need to submit supporting documents to verify your income, assets, and liabilities. These may include payslips, bank statements, tax returns, identification documents, and proof of employment.
7. Property valuation and assessment: The lender will arrange for a property valuation to determine the market value of the property you’re purchasing. They will also assess your loan application based on their lending criteria, including factors like your credit history and the property’s suitability as collateral.
8. Approval and loan offer: If your application is approved, the lender will provide you with a formal loan offer. Carefully review the offer, including the interest rate, fees, and terms and conditions associated with the loan.
9. Accept the loan offer: If you’re satisfied with the loan offer, sign and return the loan contract to accept it. Be sure to read and understand all the terms and conditions before signing.
10. Settlement: Coordinate with your solicitor or conveyancer to finalize the settlement process. They will liaise with the lender, the seller, and other relevant parties to ensure a smooth settlement.

Remember that the process may vary slightly depending on the lender and your specific circumstances. It can be helpful to consult with a mortgage broker or seek professional advice to navigate the complexities of the home loan application process.

If your finance approval is declined when purchasing a property, it can be a frustrating situation. However, there are a few steps you can take to understand the reasons behind the decline and explore alternative options:

1. Understand the reasons: Contact the lender who declined your finance approval and ask for a detailed explanation of why it was declined. They should be able to provide you with specific reasons, such as insufficient income, poor credit history, or inability to meet their lending criteria. Understanding these reasons can help you address any issues or look for alternative solutions.
2. Review your financial situation: Take a close look at your financial situation to identify any areas that may have contributed to the decline. Assess your income, credit history, and any outstanding debts. It may be helpful to seek advice from a financial professional, such as a mortgage broker or financial advisor, who can guide you through the process.
3. Improve your financial position: If your finance approval was declined due to factors such as a low credit score or insufficient income, you can work on improving these aspects. This may involve paying off outstanding debts, reducing expenses, increasing your income, or building a positive credit history over time. Improving your financial position can make you a more attractive borrower to lenders.
4. Explore alternative lenders: If one lender has declined your finance approval, it doesn’t mean that all lenders will do the same. Research and reach out to other financial institutions, including banks and non-bank lenders, to see if they have different lending criteria or options that may be more suitable for your situation. A mortgage broker can also help you navigate the options and find a lender who may be willing to work with you.
5. Consider alternative financing options: In some cases, if traditional mortgage financing is not available, you may explore alternative options. This could include looking into government-backed schemes, such as the First Home Loan Deposit Scheme or shared equity programs. Another option is to consider rent-to-own or vendor finance arrangements, where the seller provides financing directly to the buyer. However, it’s important to carefully evaluate the terms and conditions of these alternative options.

Remember that the process of securing finance for a home purchase can be complex, and it’s always advisable to seek professional advice from experts in the field. They can provide personalised guidance based on your specific circumstances and help you navigate through the challenges you may encounter.

Failing to settle your conveyance on time can have various consequences depending on the specific circumstances and agreements involved. Here are some potential outcomes:

1. Contractual Breach: If you fail to settle the conveyance within the agreed-upon timeframe specified in the contract, you would be in breach of the contractual terms. The contract may outline the consequences of such a breach, which could include penalties, cancellation of the contract, or legal action by the other party.
2. Penalty Fees: The contract may include provisions for penalty fees or interest charges for late settlement. These fees would be payable by you as the defaulting party and can vary depending on the terms outlined in the contract.
3. Legal Action: The party you are transacting with may choose to take legal action against you to enforce the contract and seek compensation for any losses they have incurred due to the late settlement. This could result in a court judgment against you and potential financial consequences.
4. Termination of Contract: In some cases, the other party may have the right to terminate the contract if you fail to settle on time. Termination would typically involve the return of any deposit or payments made by you but may also result in the loss of any rights or claims you had under the contract.
5. Damages and Losses: If your failure to settle causes financial losses or damages to the other party, they may seek compensation from you for these losses through legal means. This could involve a claim for actual damages suffered as a result of the breach.

It is important to note that the specific consequences will depend on the terms of the contract, applicable state or territory laws, and any negotiations or agreements made between the parties involved. If you find yourself in a situation where you are unable to settle on time, it is advisable to consult with a legal professional or seek advice from relevant authorities to understand your rights and obligations.

The sale of property typically involves various legal and administrative tasks, such as preparing contracts, conducting title searches, and handling the settlement process. While it is not a legal requirement to engage a conveyancer or lawyer when selling your property, it is highly recommended to seek professional assistance to ensure a smooth and legally compliant transaction.

A conveyancer is a licensed professional who specialises in property law and can handle the legal aspects of property transactions. They can assist with tasks such as preparing contracts of sale, conducting title searches, ensuring compliance with relevant laws and regulations, and managing the settlement process.

On the other hand, a lawyer, particularly one specialising in property law or real estate transactions, can also provide valuable assistance in selling your property. They can offer legal advice, review contracts, negotiate on your behalf, and address any complex legal issues that may arise during the transaction.

Both conveyancers and lawyers have expertise in property transactions, and the choice between the two ultimately depends on your specific needs and preferences. It’s recommended to consult with both conveyancers and lawyers to understand their services, fees, and the level of support they can provide before making a decision.

Remember that property transactions can involve significant financial and legal implications, and having professional guidance can help protect your interests and ensure a successful sale.

Payment of a deposit when purchasing a house typically occurs at the time of signing or exchange of contracts. The exact timing and amount of the deposit may vary depending on the terms negotiated between the buyer and seller, as well as local practices and regulations. However, it is common for the deposit to be paid at the time the contracts have been signed.

Usually, the deposit is a percentage of the purchase price, typically around 5% or 10%. For example, if you are buying a house for $500,000 and the agreed deposit is 10%, you would need to pay $50,000 as a deposit.

It’s important to note that the deposit is usually paid to the seller’s real estate agent or solicitor, who will hold it in a trust account until the settlement of the property. If you have any specific questions or concerns regarding the payment of the deposit for a particular property, it’s advisable to consult with your real estate agent or solicitor who can provide you with the most accurate and up-to-date information based on the specific circumstances.

In the context of conveyancing in New South Wales (NSW), a “notice to complete” is a formal communication sent by one party to a property transaction to the other party, usually the purchaser to the seller, demanding that certain outstanding actions or obligations be completed within a specific timeframe.

The notice to complete is typically issued when there has been a delay or a breach of contract by one of the parties involved in the property transaction. It serves as a final warning or ultimatum, urging the defaulting party to fulfill their obligations promptly, failing which serious consequences may follow.

Once a notice to complete is served, the recipient is typically given a specified period, usually 14 days, to rectify the breach or complete the outstanding obligations. The specific actions required to be taken within the notice period will depend on the nature of the breach or outstanding matters. Common examples include completing the settlement, providing required documentation, or resolving any title defects.

If the defaulting party fails to comply with the notice to complete within the specified timeframe, the other party may be entitled to exercise their legal rights, which could include the termination of the contract, forfeiture of the deposit, or pursuing legal remedies for damages incurred as a result of the breach.

It’s important to note that the information provided here is a general overview, and conveyancing practices and regulations may vary. Therefore, it’s always advisable to consult with a qualified legal professional or licensed conveyancer in NSW for specific advice regarding a notice to complete in a particular transaction.

The amount of money you need to settle your property purchase can vary depending on several factors. Here are some of the key expenses you may encounter:

1. Property Price: The first and most significant cost is the actual purchase price of the property you intend to buy. Property prices can vary greatly depending on the location, type of property, and market conditions. You should determine the specific price of the property you’re interested in.
2. Deposit: In Australia, it is common to pay a deposit when signing a contract of sale. The deposit amount is typically around 10% of the purchase price, but this can vary. So, if the property you’re purchasing costs $500,000, you may need a deposit of around $50,000.
3. Stamp Duty: Stamp duty is a state government tax imposed on property transactions. The amount you need to pay depends on the purchase price and the state or territory in which the property is located. Each state has its own stamp duty rates and thresholds. You can use online calculators provided by state revenue offices to estimate the stamp duty amount.
4. Mortgage Costs: If you are obtaining a mortgage to finance your property purchase, there may be additional costs involved. These can include loan application fees, valuation fees, mortgage insurance (if applicable), and lender’s legal fees. The specific charges will depend on your lender and loan agreement.
5. Legal and Conveyancing Fees: Engaging a solicitor or conveyancer is essential to handle the legal aspects of your property purchase. They will help with tasks such as title searches, contract preparation, and settlement procedures. Legal and conveyancing fees can vary, so it’s advisable to get quotes from different professionals.
6. Building and Pest Inspections: It’s generally recommended to conduct building and pest inspections before finalizing a property purchase. The cost for these inspections can vary depending on the size and complexity of the property.
7. Other Costs: There may be additional expenses, such as property valuation fees, strata inspection fees (for apartments or units), and moving costs. It’s important to factor in these potential expenses as well.

To get an accurate estimate of the total amount you’ll need to settle your property purchase, it’s advisable to consult with a mortgage broker, financial advisor, or real estate professional who can consider your specific circumstances and provide a more precise calculation.

When purchasing a property, you have the option to either use a lawyer or a conveyancer to assist you with the legal aspects of the transaction. While both professionals can handle property transfers, there are some differences between them:

1. Qualifications and Expertise: Lawyers are qualified legal professionals who have completed a law degree and are admitted to practice law. They have a broad understanding of various legal matters, including property law. Conveyancers, on the other hand, specialise in property law and have specific training in conveyancing processes.
2. Scope of Practice: Lawyers can provide comprehensive legal advice and assistance beyond conveyancing. They can offer advice on broader legal issues related to property transactions, such as contract law, tax implications, estate planning, and any potential legal disputes that may arise. Conveyancers primarily focus on the legal aspects directly related to property transfers, such as title searches, preparing legal documents, and liaising with relevant parties.
3. Cost: Generally, conveyancers tend to have lower fees compared to lawyers. This is because lawyers offer a wider range of legal services, and their fees often reflect their broader expertise. However, fees can vary depending on the complexity of the transaction and the individual professional’s rates.
4. Complexity of the Transaction: If your property transaction involves complex legal issues or has potential complications, such as easements, encumbrances, or disputes, it may be advisable to engage a lawyer. Lawyers are better equipped to handle intricate legal matters and can provide you with comprehensive legal advice tailored to your specific situation.
5. Regulation and Licensing: In Australia, both lawyers and conveyancers are regulated by different bodies. Lawyers are regulated by the state or territory’s legal professional body, such as the Law Society or the Bar Association. Conveyancers are regulated by the state or territory’s regulatory authority, such as the Conveyancers Licensing Board. It’s important to ensure that the professional you engage is appropriately licensed and regulated.

Ultimately, the decision to use a lawyer or a conveyancer when purchasing a home in Australia depends on the complexity of the transaction, your specific needs, and your budget. It’s advisable to consult with both professionals, compare their services and fees, and choose the one that best aligns with your requirements.

Stamp duty is a tax levied by state and territory governments on certain transactions, primarily on the transfer of ownership of property, such as real estate and motor vehicles. Stamp duty is also applicable to certain business transactions, insurance policies, and some financial transactions.

The specific rates and exemptions vary across different states and territories within Australia, as stamp duty is a state and territory tax rather than a federal tax. Each jurisdiction has its own legislation that governs stamp duty, including the rates and thresholds.

Generally, stamp duty is calculated as a percentage of the dutiable value of the property or transaction. The dutiable value is typically the purchase price or market value, whichever is higher. The rates can vary based on factors such as the type of property (residential, commercial, or vacant land), the value of the property, and whether the buyer is a first home buyer or an investor.

It’s important to note that the stamp duty rates and regulations are subject to change, and it’s advisable to consult with the relevant state or territory revenue office or seek professional advice to obtain the most up-to-date and accurate information regarding stamp duty in a specific location within Australia.