If you’re buying or selling a property, understanding how conveyancing works is essential for guaranteeing that your transaction runs smoothly.
A conveyancer conducts several essential local searches to detect hidden defects, issues with planning permissions or other things that could reduce the value of a property. They also arrange for a property survey which looks for things that need fixing before closing can take place.
Pre-exchange
Once you’ve made an offer on a property and the mortgage lender has given formal approval, it’s time for formal exchange of contracts. This process may take up to eight weeks depending on several factors. Find out the best conveyancing services melbourne.
Before signing a contract to purchase the property, it’s wise to conduct a pre-exchange inspection. This will enable you to confirm whether the house remains as you first saw it and verify all fixtures and fittings are in order.
Additionally, this may give you the chance to discuss any problems with the seller that need rectifying. Doing this could ultimately save you money in the long run.
Following your inspection, it is wise to contact your solicitor and request they send you a ‘pre-contract enquiries’ questionnaire which must be filled out. The buyer’s solicitor will use your responses in determining whether to proceed or not and under what conditions.
Before exchanging contracts, make sure your property is insured. Doing so will guarantee that if something goes terribly wrong with the building, you can still make a claim against the insurance company.
Pre-completion
Pre-completion constitutes 80% of the work a conveyancer does. This includes perusing through the sale pack and raising any queries from both buyer and seller’s solicitors. Furthermore, searches are conducted, such as those for water/drainage issues and environmental considerations.
Search results can identify any issues that could impact a buyer’s ability to purchase the property or secure mortgage security. It’s wise to arrange these searches early in the conveyancing process so they are completed before you close on your purchase of the property.
These searches will also confirm that the seller’s mortgage has been paid off and any title registration completed, if applicable. Lenders typically require these searches in order to safeguard their loan.
Once all searches have been conducted, a draft transfer deed will be created and sent to the seller’s solicitor for review. After both parties sign it, it’s ready for completion.
On the day of completion, money is transferred from your lender to a conveyancer’s client account as purchase money and keys are handed over. This money then pays any Stamp Duty land tax due and registers your new property with HM Land Registry.
Exchange of contracts
Exchange of contracts is the moment in which both buyers and sellers formally commit to the sale. Once exchanged, it becomes legally binding between both parties and must be completed on or before the agreed upon date. If either party decides to cancel after exchange, they will face severe repercussions as compensation for the other.
Typically, exchange takes between one and four weeks before its scheduled completion date. However, this timeline may be extended if there are multiple transactions involved or if there are issues with the deal itself that cause delay.
For the purpose of exchange, each legal representative in the chain must read out and confirm the terms of their client’s contract with corresponding solicitor acting for the other party. Once they’re content with both parties’ agreements, they’ll send it over in paper form to all other lawyers involved.
In most cases, this is done over the phone with a recording made so both parties are sure they agree upon identical conditions. Furthermore, it’s wise to share any worries you have with your conveyancers during this stage – such as about repairs needed before receiving keys – in case there are any complications.
Conveyancing is the legal procedure that transfers property ownership from one individual to another. This includes providing forms of identification, transferring title deeds and performing property searches in order to guarantee that a house purchase is legally valid.
Getting Started
It is essential to find a trustworthy conveyancer before looking for a property to buy – this will reduce the chance of being gazumped (when someone offers more money than expected at the last minute)! Additionally, provide your chosen solicitor or licensed conveyancer with all mortgage offers and details of the property as soon as possible.
Selecting the Correct Conveyancer
It is essential to find a trustworthy solicitor or licensed conveyancer who will act in your best interests rather than their own. This is especially essential if purchasing a new build property! They can detect things like issues with the land on which it stands, chemicals or other potential issues nearby, as well as any upcoming building work which could decrease its value.
They have all of this information at their fingertips.The conveyancing process can take anywhere from 6-8 weeks. However, if you have cash or specialist funding secured on your home, the timeframe may be shorter.
