Conveyancing is the legal and administrative process associated with transferring ownership of a property from one party to another. If you’re selling, buying or remortgaging a property then you will need to undertake some form of conveyancing to satisfy legal requirements. For practical purposes for the average homeowner, conveyancing as a whole refers to the work undertaken by a solicitor or registered conveyancing provider that has exchange of contracts and completion as milestones.
The definition of the term may sound very simple; however, there are many steps that have to be tread on before the process is completed. At times, this can consume a lot of time. Almost every state has different conveyancing laws and these can be pretty strict.
Conveyancing, in itself, involves various steps. Among the ones most critical, one is searching. Conveyancing searches are vast and can include anything from title searches to zoning searches. Zoning searches also help potential property owners take a look in the record of the property to see whether the property holds any adverse plans or demolition orders or not. A title search is one that seeks solutions to questions like if the property in-question has any kind of restrictions or encumbrances imposed on it, or if the owner of the property has a genuine saleable interest, or if there is any mortgage on the property.
Avoid risks of ownership disputes
The process of selling and buying homes requires thorough examination of the status of the property. If a property has been placed as a security for a mortgage, buying such as home could complicate the ownership if the previous owner does not repay the loan. In order to avoid such disputes, a conveyancer is important to in handling the transfer process. When things go disastrously wrong, it means that you have a legal backup to help you out in the dispute.
Fulfill mortgage lenders requirements
When acquiring ownership of a home through a mortgage lender, the financier will insist that you employ a solicitor to protect their interests. Lenders do not want to risk getting involved in shoddy conveyancing work such as the do-it-yourself- DIY conveyance. Lenders understand the complex nature of transferring ownership and the implication it can cause to the financier if things go wrong. The services of a legal practitioner in land or home ownership transfer prevent incidents of fraud in the deals. This protects buyers, sellers, as well as mortgage lenders involved in a sale.
Build trust in buying and selling process
The people involved in selling or buying property may not be happy with you if you are considering doing your own conveyance. This means that they may reject any offers you give them. In order speed up the process of buying or selling your home, you need to consult a licensed conveyancer to handle the legal part. The process of gaining the title of a property may be delayed if you are not able to fill the documents as required.
The role of a conveyancer is to carry out what are known as local searches. Local searches involve establishing whether the property is subject to local authority proposals, leases, mortgages, land tax, susceptibility to flooding or subsidence, or liability for unsound building structures and repairs, and other aspects. In addition to this, there are some other duties which this type of solicitor will be involved with on a daily basis, such as:
For the buyer:
- Prepares, clarifies and lodges legal documents such as contract of sale and memorandum of transfer
- Researches the property and its certificate of title
- Puts the deposit money in a trust account
- Calculates the adjustment of rates and taxes
- Settles the property-the agent acts on your behalf and advises you when the property is settled. The conveyancer also contacts your bank so that you can know when the final payments will be made.
- Represents your interest with the vendor or agent
For the seller:
- Completes and ensures that the legal documents are all sorted
- Represents you and responds to any requests from the buyer. For example the conveyancer requests on date extension and title questions.