Both the buyer and seller of a property need to go through the conveyancing process to complete a real estate transaction. This helps ensure that the title of a property is legally transferred and that all loose ends are tied up. However, conveyancing is slightly different when you are buying a property in comparison to when you are the seller. You will have slightly different rights and obligations when purchasing a home, which it’s important to be aware of.
Many buyers find that it’s easier to purchase a home using the services of professionals. If you’re selling your home at the same time, you’ll want to have a licensed real estate agent to walk you through this process. In addition to working with a real estate agent, it’s also helpful to use the services of a professional conveyancer or solicitor. They can help ensure that all of the following obligations are met as you buy a new property.
(A good real estate agent will have professional connections with conveyancers and conveyancing solicitors, you can compare local real estate agents at LocalAgentFinder to find the best agent for your needs.)
Documents a Purchaser is Responsible For:
Two of the most important documents in the conveyancing process are the Vendor’s Statement and Contract of Sale. These are prepared by the vendor. However, the purchaser will also have several documents that they must pull together in order to complete the real estate transaction.
One of the first types of documents the purchaser is responsible for are the Transfer documents. These help ensure that all the fine details are correct, so that all pertinent information is included in the Certificate of Title. These details could include the manner of holding of a property, such as what percentage each party will be holding if more than one purchaser is involved. In most cases, your conveyancer or solicitor will prepare these documents for you. You can then review them before signing the documents, which are then sent along to the vendor for safekeeping until settlement.
Further documents to consider include the Statement of Adjustments as well as the Settlement Statement. These documents include details of any adjustments that are made for the purchase. Typical adjustments could include water rates, council rates, body corporate fees, or other fees incurred by the purchased property. As with the Transfer documents, these statements will be prepared by your solicitor or conveyancer. After completion, they are also submitted to the vendor for verification. If there are no problems with the calculation of adjustments, the vendor will provide your conveyancer or solicitor with the appropriate cheque details to help complete the settlement.
Further Obligations:
In addition to preparing these documents, there are other tasks that a purchaser may be interested in as part of completing the conveyancing process. This includes conducting searches on the property. Although the vendor conducts these checks as part of preparation for the Vendor’s Statement, your conveyancer or solicitor may not wish to rely solely on this information. It’s a good idea to conduct your own searches to ensure that all of the information included is correct. The type of searches that will be conducted are up to you and your conveyancer or solicitor. You may decide that you don’t need to conduct the full set of searches, but rather focus on important details such as title searches. If the vendor has neglected to include relevant certificates pertaining to council or water rates, the purchaser may need to order these searches.
Aside from performing these optional searches, the purchaser will also need to make all of the necessary arrangements to pay monies owed on the date they are due. The vendor is obligated to give you the clear title to the property in return for this money at settlement. Fees to be paid at this time include the deposit, along with the final settlement balance.
Some vendors will agree to you taking possession of the property before the allotted settlement date. Should you both wish to do this; you will need to have a Licence Agreement prepared. This agreement can be prepared by the vendor’s solicitor or conveyancer, but you can expect to pay between $200 and $300 for it.
Costs of Conveyancing for Purchasers
As you go about purchasing a house, you’ll have a certain budget in mind. This will need to include both conveyancing and agent costs. You can compare agent qualifications and fees by using the free online dashboard at LocalAgentFinder to find a reasonable real estate agent. At the same time, you will need to budget for the cost of conveyancing.
Professional Fees
The purchaser can expect to pay a bit more for professional conveyancing than the vendor does. This is because there is usually more legwork required on the part of your solicitor or conveyancer. If a bank is involved, the fees will be higher because dealing with financial institutions can be quite time-consuming. Yet it’s worth shopping around, because some solicitors and conveyancers charge the same rates for both buying and selling a property.
As the buyer, you’re in a riskier position than the vendor. As a result, your solicitor or conveyancer will need to take on rigorous checking and undertake a variety of searches. They must ensure that all of the information in the Vendor’s Statement is accurate and up to date. The legwork involved for this type of research could include contacting council authorities and government bodies, in order to check on building permits, road access, zoning laws, and planning restrictions.
Disbursement Costs
Although the professional fees may be higher for buyers, at times the disbursement costs will be lower. This is because the solicitor or conveyancer may not need to perform as many checks as the vendor does, if they can use some of the same information from the Vendor’s Statement. If the council rates certificate is fairly current, for example, your conveyancer or solicitor may be able to simply use this for adjustment purposes instead of ordering a brand new one.
Yet if the vendor hasn’t included all relevant search certificates in the Vendor’s Statement, then the buyer’s solicitor or conveyancer will need to take care of these. In this situation, the purchaser will pay similar or even higher disbursement costs than the vendor.
The first step towards going through the conveyancing process is to find a suitable conveyancer or solicitor to help you. Because such a big purchase is on the line, it’s better to leave this type of transaction in the hands of professionals. At the same time, if you are in the process of selling your house as you look for a new one you’ll want to have a qualified real estate agent on your side to help you with this aspect of the real estate transaction. Most Australian agencies have provided their information at LocalAgentFinder so that you can compare local real estate agents to find the right agent for your needs.
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