Although both the vendor and the purchaser must go through the conveyancing process, the legal obligations will be slightly different on each side. If you’re selling a property, it’s worth taking a closer look at the conveyancing process and what is required, so that you can meet all legal and financial obligations of the transaction.
Most sellers will choose to work with either a professional conveyancer or solicitor to help complete the conveyancing process. This ensures that you will have access to a professional’s level of expertise. A professional conveyancer will know the laws that pertain to your particular state or territory, for example. It’s also helpful to consult with your real estate agent throughout the selling process, leading up to conveyancing.
The vendor is responsible for taking care of several obligations as part of the conveyancing process. This includes the following aspects:
In most cases, the vendor will be responsible for preparing the Contract of Sale. This is a task that can be completed with the assistance of your solicitor, conveyancer, or even selling agent. The right professional to assist you with this will depend on the type of sale. For most private sales, the selling agent will prepare the contract. However, if you choose to sell through an auction, then the solicitor or conveyancer will most likely prepare your contract.
At the same time, the vendor must provide an official Vendor’s Statement. The conveyancer or solicitor will prepare this for you. A purchaser does not need to worry about the Vendor’s Statement, but they may wish to undertake their own title searches to help verify the details in the statement. This will be up to the purchaser and his or her own solicitor or conveyancer.
In addition to the Contract of Sale and Vendor’s Statement, the seller is also responsible for turning over a Certificate of Title. This title should be free of any encumbrance, other than what has previously been agreed to during negotiation. Because the vendor is the owner of the property, they should be the ones in possession of this title document. However, if there is a mortgage it might still be held by the bank. In any event, it’s the vendor’s responsibility to turn it over to the purchaser to help complete the conveyancing process.
There are further legal obligations that property vendors may need to meet, although these may depend on the individual circumstances. One example of this is when there is a tenant living in the property. If the property is to be sold as a vacant possession, then the vendor is legally responsible for notifying the tenant that they must vacate the premises by the date of settlement. Tenants have rights regarding the notice they must be given to move out, so the vendor must ensure that they are meeting all time requirements according to State or Territory legislations. Owners of rental property often work with a property management company or real estate agent, who may be able to provide advice in this matter. You can search for an agent with the area of expertise that best meets your circumstances by using the free online dashboard at LocalAgentFinder. A conveyancer or solicitor will also be able to assist in these matters.
Another obligation that falls to the vendor is ensuring that the property is turned over in the same condition as outlined in the Contract of Sale. All of the fixtures included in the contract must still be in place.
Costs of Conveyancing
Although it costs money to pay for professional conveyancing, the vendor usually pays less than the purchaser for these services. The transaction is riskier for the purchaser than it is for the vendor, which requires their conveyancer to do a bit more leg work. If you don’t have a mortgage on your property and your real estate agent has prepared your Contract of Sale, then your costs will also be correspondingly lower. The more tasks that a conveyancer or solicitor must take care of as part of the conveyancing process, the higher the fees will be. However, every conveyancer or solicitor may charge different rates so it’s best to check on this in advance.
Disbursement costs will usually be higher for sellers than when you are purchasing a property, however. This is due to the searches that are required as part of the research for the Vendor’s Statement. Although the purchaser can potentially rely on the information presented in this statement, the vendor is legally obligated to provide this information and must pay for the compulsory searches to back it up.
These are the main obligations and challenges that are part of the conveyancing process. A seller can choose to work with a real estate agent who can help take care of the first part of this process, such as preparing the Contract of Sale. Start comparing local agent fees and services for free at LocalAgentFinder, so that you can find the best agent for your needs. You can then move on to finding the right conveyancer or solicitor to complete the process.