Conveyancing can be a complicated process if you are not experienced or trained in this field. There are many things which can go wrong in property conveyancing, as is the case with any legal transaction. This is why it’s important to hire a professional Conveyancer or Conveyancing Solicitor to help guide you through this process and lower your chances of something going wrong.
(A good real estate agent will have professional connections with conveyancers and conveyancing solicitors. Compare real estate agents for free at LocalAgentFinder for expert advice to assist you in selling your property.)
It’s also important to be aware of the common problems that both buyers and sellers can face during conveyancing, so that you can be prepared to face them.
Problems when Selling a Property
1. The purchaser does not pay the deposit on time
If the buyer doesn’t put down their deposit in a timely manner, your real estate agent would be the one to help chase up on this. Yet if the problem continues, then your conveyancer or solicitor may need to step in to discuss what your options are. These could include charging interest on the unpaid deposit as a penalty.
2. Your bank is not able to settle on time
Many sellers have a mortgage which will need to be discharged. Your solicitor or conveyancer can help make arrangements with your bank to help facilitate this. Your mortgage must be discharged and the Certificate of Title will be handed to the buyer once they have paid out the mortgage with proceeds of the sale. Yet the discharge process can be lengthy, and it’s possible that your conveyancer won’t be able to book settlement with the bank because they’re not ready yet. This could happen if the appropriate department hasn’t received all of the documents they need yet for other banking departments.
3. The purchaser isn’t ready to settle on time
The bank plays a central role in the settlement process for both buyer and seller when there is a mortgage. The purchaser will also be relying on their bank to be ready to settle on time if they are obtaining a mortgage. If the bank’s not ready due to a stall in mortgage documents, the purchaser won’t be ready yet either. It’s up to the conveyancer or solicitor to inform you of your rights should this happen. You may be able to charge penalty interest in this case, just as you would with delays in the deposit.
4. The purchaser refuses to settle
Before settlement day, the purchaser will need to undertake a final inspection of your property. If they notice faults which they didn’t see the first time around, they might refuse to settle unless these are taken care of. You’ll need to use your solicitor or conveyancer to help you should this happen. They can help enforce the rules of the Contract of Sale and will have the experience necessary to handle any issues of this nature. To prevent this from happening in the first place, it’s a good idea to discuss any possible flaws in the building with your real estate agent when you are first thinking about selling your property. Find a qualified agent who can help assess your building by using the free comparison service at LocalAgentFinder. You may also want to learn more about possible repairs to take care of before selling.
Problems when Buying a Property
1. You are not able to obtain finance
Most buyers need to obtain some level of financing in order to make a purchase as large as a house. To help facilitate this, many buyers will sign a Contract of Sale with the agreement that the sale is subject to finance by the specified date. Yet at times the bank or lender will not be able to give you the approval you need by this contractual date. In this case, you’ll need to decide whether to terminate the contract altogether or continue with it. If you wish to continue with the initial Contract of Sale, your conveyancer or solicitor should be able to ask for an extension of the finance date. Be sure to keep them updated with any progress or news pertaining to your loan application. If you fail to notify the vendor of this information, your Contract could be nullified.
2. The bank is unable to settle on time.
If the loan cannot be processed by the date of settlement, you will be unable to meet your settlement obligations on time. This will cause you to be in breach of your Contract of Sale and you may incur penalty fees, interest, or termination of the contract in some cases. Be sure to discuss all of your options with your solicitor or conveyancer to help ensure that all of your loan documents will be able to be processed in a timely manner. In some cases, you will also be able to apply for a settlement extension.
3. The property is not in the same condition as when you signed your Contract of Sale
If you notice flaws or maintenance issues when you conduct a final inspection of the property, you will need to discuss your rights with your conveyancer. You have certain rights under the Contract of Sale and you should be able to dispute the condition of the property. This is unfortunately a quite common issue, which your solicitor or conveyancer will be able to assist you with.
When any of these issues arise, it’s vital to have an experienced conveyancer or solicitor on your side to assist you. They can help you navigate each problem according to your specific situation and needs.
In addition to a conveyancer, using a qualified and experienced real estate agent can also make a world of difference in your transaction. You can compare real estate agent fees and services at LocalAgentFinder for free, to help you get started in selling your property.
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