Understanding the steps involved in the process of conveyancing in Melbourne is important for anyone who’s thinking of buying or selling property. Conveyancing is the legal process of transferring ownership of property from one person to another, and there are a number of steps that need to be followed in order for conveyancing to be completed correctly. This article will take a closer look at what conveyancing is and each of the steps involved.
What is Conveyancing?
Conveyancing in Melbourne is the legal process whereby ownership of land or property is transferred from one person to another. This can happen either through sale, inheritance, gift or other means. In order for the transfer of ownership to be legally binding, certain documents must be prepared and signed by both parties, and these must then be lodged with the relevant authorities. The process can be quite involved and complex. It’s important to hire a qualified solicitor or conveyancer who can guide you through each step and ensure the process goes smoothly.
The Steps Involved in Conveyancing
Generally, conveyancing in Melbourne will follow a set process. However, the steps will vary slightly depending on whether you’re buying or selling property, as well as other factors such as whether you’re buying at auction or through private treaty. The steps that are common to both buyers and sellers are generally as follows:
Step 1 – Making an Offer & Drawing Up Contracts
When buying property, one of the first steps is to make a formal offer to the seller. This can be done verbally or in writing, but it’s often best to get your conveyancer involved at this stage so that they can help with negotiations and ensure that all relevant information is included in the contract of sale.
The contract of sale outlines the terms and conditions of the sale, including details such as the purchase price, settlement date and any special conditions that may apply to the property or title. It’s important to have a conveyancer check over this document before you sign it, as it can be binding on both parties once it has been signed.
Step 2 – Paying a Deposit & Assuming Risk
Once your offer has been accepted by the seller, you’ll need to pay a deposit which is usually 10% of the sale price of the home. This money is held in trust until settlement takes place, at which point it will be applied towards the purchase price. At this stage, the buyer typically assumes all of the risks associated with the property. This means that if something goes wrong with the property after exchange, such as damage from fire or flooding, the buyer is then responsible for rectifying these issues at their own cost.
Step 3 – Cooling-Off Period
In some states of Australia, buyers are given a cooling-off period after exchange during which they can back out of the sale if they have second thoughts. This period is usually 5 business days, but it may be longer in some cases. If the buyer decides to cancel the sale during this time, they will forfeit their deposit and may also be liable for other costs such as advertising and marketing.
Step 4 – Transfer of Property Title
Conveyancing in Melbourne is essentially the process of the property title being transferred from the seller to the buyer. This is usually done through a land registry or titles office. It’s important to make sure that this step is completed correctly so that there are no issues with ownership of the property in future.
Step 5 – Outgoing Mortgagee
If you’re selling a property that has a mortgage attached to it, at this stage you will need to arrange for the outgoing mortgagee to be paid out at settlement. This can sometimes be done through your solicitor or conveyancer, but in other cases you may need to organise this yourself. You will also need to provide proof of insurance for the property until the date of settlement so that the lender can be sure that their interest in the property is protected.
Step 6 – Adjustments
There are a number of adjustments that need to be made before settlement, such as paying any outstanding council rates or water charges, and adjusting strata levies if applicable. Your solicitor or conveyancer will take care of these adjustments on your behalf and make sure that they’re completed before settlement takes place.
Step 7 – Settlement
Settlement is generally the final step when it comes to conveyancing in Melbourne, and this is when all funds are transferred from the buyer to the seller and ownership of the property officially changes hands. This usually takes place around 6 weeks after exchange, but it can vary depending on a number of factors. Once settlement has taken place, you will need to arrange for keys to be collected from the agent so that you can officially take possession of the property.
As you can see, there are a number of different steps involved when it comes to conveyancing in Melbourne that can make it seem like a daunting process. However, by hiring an experienced conveyancer, you’ll receive the support and guidance you need to get through each step in a property transaction with ease.
