Purchasing a house is a major event in anyone’s life and the legal process needs to be overseen by competent experts in the field. Conveyancing is a term used to describe the process that follows the signing of a contract to buy or sell a property, and although the process can be a very complex one, there are some things you can do to make sure the process is as simple as possible.
There are literally dozens of conveyancing firms in every major capital city that are dedicated to providing the service. In some states there is a requirement for legal oversight, when it comes to conveyancing but in most cases the day-to-day operations are conducted by specially trained conveyancing experts, and these are the people that you will normally deal with at every stage of your transaction.
So what are the steps that need to be completed for the title of a house to rightfully pass to you as the new buyer?
- After the price has been agreed and a contract has been signed by both buyer and seller, the buyer needs to ask the seller specific questions, which clarify a number of legal issues. These include things like establishing the exact boundaries of the property and determining whether there are any illegal structures on the property.
- When these questions have been satisfactorily answered the next thing, which must be done, is to clarify the legal status of the property. This is done by conducting searches with government and local authorities to see whether they have any relevant legal interests in the land. This will include places like road and transport authorities to see whether they are planning any new roads or railway links, which might affect the property. This avoids any trouble, which may occur in the short term ahead.
- Once these details have been clarified and there are no impediments to the process, it is time to get any financing arrangements in place. This generally involves the borrower lodging a home loan application with a bank and, in normal practice, will begin well before the contract has been finalised or even signed. In some states you will be bound to adhere to strict finance clauses. The timeframe is very important and a contract can be cancelled if finance is not obtained in time. Once the bank has issued a full approval and all conditions of the contract have been sorted out, the contract will assume a new status and become unconditional, which means that the property will now be transferred to the new buyer on the specified date.
- All loose ends can now be cleared up including council rates, water and sewage costs etc. Conveyancing firms are responsible for tallying up the proportional distribution of these costs so that final financial transactions can take place on the nominated day of settlement.
A good conveyancing firm will take care of each and every one of these steps in a timely fashion to ensure that the buyer experiences a smooth transaction.