Conveyancing is the process of transferring ownership of the legal title of a property (such as a house or land) from one person to another. Preparing, verifying and lodging a range of legal documents as well as preparing the property for settlement are important parts of conveyancing. As you can imagine passing a property to a new owner means a lot of work and a conveyancing transaction generally consists of three stages:
Selling or buying a home is probably the biggest single financial transaction you will ever undertake, so it is important that it is done correctly whether It is your first or subsequent home.
The law relating to conveyancing Is changing all the time. There are many legal requirements in a conveyancing transaction and there are many pitfalls for the unwary. If a mistake Is made In the transaction you may not know about it for several years and than you may have difficulty in selling your home. In addition, you may have to undertake costly alterations to the property.
CONVEYANCING FOR SELLERS
If you are selling a property, one title e-conveyancing will handle the legal and administrative work. At one title e-conveyancing we have a team of trusted experts offering conveyancing for property sellers in all areas. We have experts In all property types in all areas of Sydney from multi-million houses to one-bedroom flats. With our knowledge of the Sydney property market you can be reassured that we will identify any potential issues and deal with them swiftly.
THE CONTRACT FOR SALE
The first thing you need to do If you are selling your house or apartment Is to prepare a contract for sale. Putting your house on the market without having a proper contract Is an offence under NSW law and could lead to you being fined.
WHAT DO I NEED TO INCLUDE IN THE CONTRACT FOR SALE?
The law says that all sellers must include certain Information in the contract for sale and must also make certain promises (known legally as 'warranties) about the property they are selling. These obligations are known as the Vendor Disclosure Requirements. The most common documents you may need to include with the contract are:
A zoning certificate. Often known as a 'section 149 certificate' this is issued by local council and shows planning controls and other things which may affect the property, such as any proposed road widening
A drainage diagram. This shows the location of any sewer lines
A copy of the certificate of title or a title search confirming that you own the property
Copies of any documents creating easements, right of way, restrictions or covenants
Certificate of compliance or non-compliance for any swimming pool
Certificate showing whether or not land tax is owing on the property.
WHAT IF I AM SELLING A STRATA TITLE PROPERTY?
Most apartments in NSW are strata title. If you are selling a strata title property, you will also need to include:
A copy of the property certificate for the lot and common property
A copy of the strata plan showing the lot
A copy of any change of by-law affecting the use of common property.
You should also let us know if any special levies have been levied or are likely to be levied
WHAT HAPPENS IF THE CONTRACT DOESN'T COMPLY?
If you do not comply with the Vendor Disclosure Requirements and there turns out to be a problem with the property, the buyer may be able to cancel the contract for sale, in which case you will also have to return their deposit. This could be very serious if you have already bought a new home.
WHAT'S INCLUDED IN THE SALE?
Unless the contract specifically says otherwise the property is sold 'in the state it's found'. That also means any 'fixtures' are automatically included.
A fixture is anything that cannot easily be taken away without doing damage to the property. For instance, stoves are usually fixtures because they are wired in, whereas fridges are not because they only need to be unplugged. Sometimes you may be able to exclude a fixture from the contract for sale. At other times, what constitutes a fixture isn't so clear cut (e.g. removable floor coverings or an above-ground pool) and this can lead to a dispute between you and the buyer. Where anything is in doubt, it should be expressly included in the contract for sale.
SHOULD I USE STANDARD OR TAILORED TERMS IN THE CONTRACT?
Many of the terms in any contract for sale will be standard, which means they have been in use for a long time and are generally considered to be fair to both the seller and the buyer. You don't necessarily have to include all of these standard terms in your contract, especially if they do not reflect your needs or the property you're selling.
We will make sure that the contract for sale doesn't only meet the legal requirements, but that it is also in your best interests. That said, it is likely any buyer will want to negotiate some of the terms on which they're buying. For instance, if they are also selling a home, they may want a longer or shorter settlement period than normal. Alternatively, they may want to make sure certain items, such as the blinds, are included as 'fixtures.
CONVEYANCING FOR BUYERS
Choosing the right conveyancer when you are purchasing a home is a very important decision. At one title e-conveyancing we offer the best conveyancing for buyers in Sydney. All of our conveyancing team am highly experienced and dedicated to protecting your Interests.
We respond to enquiries quickly, keep you and your agents up to date, and communicate with your lender on your behalf. Whether you are a first-time buyer, a second time buyer, or an investor buying to let, our highly experienced team have the specific knowledge to make your house buying experience as hassle free as possible.Australian Property Law places all the responsibility of researching a property onto the buyer. It's known as 'caveat emptor or 'buyer beware.' Our expert conveyancing team work on your behalf to make sure all of the necessary searches are carried out swiftly and that you're kept up to date with all of the results.
What sets us apart from our competitors. If you need to meet tight timeframes, our team keep to a limited workload, in order to keep on top of response times. The average purchase takes 6-8 weeks so let us know if you need to complete faster.
Before you start choosing the right loan.
Do your research, plan and have patience to make a successful purchase.
Shop around for the right home loan that suits you and not the banks.
Compare banks and their lending fees.
Find a right finance broker.
Your loan has a two-stage process (a) getting a pre-approval and (b) getting the loan unconditionally approved by your bank.
Choosing what to buy.
Always ask for the copy of the contract for sale from the agent.
Ask one title e-conveyancing to look over the contract for you at no obligation.
Arrange any necessary building, pest and strata reports.
Inform your bank that you have found a property and forward them the front of the contract in order to carry out a valuation on the property if required.
Visit the property on more than one occasion so as to be totally satisfied with the property.
Make an offer. It is more preferable to have you offer in writing and shown to the vendor.
Contact your bank and ask the progress of your loan.
Once you loan is unconditionally approved, and you have been notified in writing by your bank you may then proceed to exchange contracts.
Contracts can be exchanged either with a cooling off or without a cooling off period.
Gazumping means when you have a verbal agreement with an agent or seller to buy a property at an agreed price, but the property is not sold to you in the end. "This usually happens when the vendor (the person selling the property) has decided to sell the property to someone else, usually for a higher amount.
If you are gazumped, neither the agent nor the vendor is obliged to compensate you for any money you may have spent on legal advice, inspection reports, finance application costs or inquiries. However, your 'expression of interest' payment (if you have paid one) must be refunded to you in full.
Some ways to protect yourself from being gazumped are:
Always have your loan finance pre-arranged, and ensure you can pay the 10% deposit, by Bank Cheque or a deposit bond so there is no delay before attempting to exchange contracts on a property.
Obtain a copy of the sale contract as soon as possible and have it examined by one title e-conveyancing.
Seek to exchange contracts with the vendor as soon as possible. Anyone purchasing residential property has a five-day cooling off period commencing from the time of exchange of the contracts. Only the purchaser can waive the cooling off period, and it can be extended by agreement.
During this time, you can do a building and pest inspection and have the contract examined. However, if you rescind the contract during this period, you forfeit .25% of the purchase price to the vendor, as the property has been taken off the market for a period of time. The amount forfeited is recovered from the deposit you paid under the contract. If the amount of the deposit is insufficient, you will have to provide the necessary additional funds. You should find information relating to the cooling off period in your contract.
Negotiate firmly with the vendor or real estate agent. Insist on the agent passing your bonafide offers to the vendor and obtain written proof of this occurring. The law requires agents to do this.
Be ready to exchange with a signed copy of the contract and follow through on the exchange process yourself or with another trusted person to ensure exchange. If you are advised that other offers have been made, demand to see written evidence. If you are certain that you want the particular property, be ready to possibly increase your purchase offer to the vender.
Be aware that the vendor is not generally compelled to sell to any specific person and can change their mind at any time prior to the exchange of contracts.
Vendors may not necessarily sell to the highest offer but may accept a lower offer from a prospective purchaser.
Thank you for visiting our website. If you have any questions or concerns, please reach us anytime.