Conveyancing is the Transfer of legal ownership of land. This is generally done by entering into a Contract for Sale of Land. Licensed Conveyancers are specialists in Property Law so there is no need to involve a Solicitor/Lawyer in this process. Certified Practicing Conveyancers, like Rebecca Stocker, are those Licensed Conveyancers who are recognised by the Australian Institute of Conveyancers as offering a higher level of expertise and service to their clients.
Prior to Exchange
The Vendor (seller) is required to have a Contract prepared before the property is marketed for sale and this will be done by the Vendor’s Conveyancer. The Contract will include any special conditions that the Vendor requires together with the Vendor Disclosure Documents which are required to be attached to the Contract by law.When an offer is accepted neither party is legally bound until such time as Contracts are signed and exchanged. This is when both parties agree to enter into the Contract and the deposit is paid.
The Exchange Process
Contracts may be exchanged in a number of different ways, for example:
Exchange waiving cooling off rights
Prior to exchange the Purchaser’s Conveyancer will review the Contract and negotiate any amendments or request further information if required. Exchange will only take place when the Purchaser is satisfied with the terms of the Contract, has received formal finance approval (if required) and received satisfactory pre-purchase inspections.
Exchange with cooling off period (usually with the Agent)
Sometimes the Real Estate Agent will ask the Purchaser to sign a Contract immediately in order to secure the property. This is completely legal. The Purchaser should request a longer settlement period for this type of exchange. In this instance the Purchaser will usually have a 5 day cooling off period. The Purchaser is entitled to rescind the Contract during the cooling off period for any reason in which case an amount of 0.25% of the purchase price will be forfeited to the Vendor, and both parties are treated as though the Contract never existed. Prior to the cooling off period expiring the Purchaser should be satisfied with the terms of the Contract, have received formal finance approval (if required) and received satisfactory pre-purchase inspections. Please note that there are certain legal requirements that need to be met in order to rescind the Contract and advice should be sought from Stocker Conveyancing in this regard.
Please also note that there are certain circumstances where the Purchaser does not have the benefit of a cooling off period and advice should be sought from Stocker Conveyancing in this regard prior to signing a Contract.
Exchange at Auction
Purchasers at Auction should be very careful as there is never a cooling off period. Accordingly it is imperative that the Purchaser receives advice on the Contract from his/her Conveyancer, satisfactory pre-purchase reports and formal loan approval PRIOR TO THE AUCTION DATE. The successful bidder at the auction will be required to sign a Contract immediately and pay a 10% deposit. The Vendor should ensure that the Contract contains all required Conditions and that he/she can comply with the terms of the Contract prior to the settlement date.
This will generally include the Vendor’s Conveyancer obtaining answers to Requisitions on Title, arranging for the required legal documents to be signed and available on settlement, ensuring that the terms of the Contract are complied with, liaising with the discharging mortgagee in relation to a payout figure, checking settlement figures, arranging settlement with all parties including the discharging mortgagee.
On settlement the Vendor’s Conveyancer will receive the settlement cheques and the appropriate title documentation will be handed to the Purchaser’s Conveyancer. If mortgagees are involved they will also attend settlement and play their respective roles. Notification will then be sent to the agent and the Purchaser can usually collect the keys within approximately 1 hr of settlement taking place.
Please note that the information provided on this website should be used as a general guide only, every matter is unique and this general information should not be relied upon nor should it be taken as legal advice. Contact us for advice in relation to your specific Conveyancing matter.