In simple terms, conveyancing refers to the legal process of transferring ownership of a property from one entity to another. It entails several financial and legal aspects, and the consequences of making a mistake can mean a huge inconvenience and shelling out a lot of money. To ensure that the process will run smoothly, you need a qualified individual who will oversee the process from end to end. This person is called a property conveyancer.
Conveyancing refers to the legal process of transferring ownership of a property from one entity to another.
On settlement day, your property conveyancer will meet with your lender and the representative/s of the seller to exchange required documents. This is also where they organise the balance of the purchase price that will be paid to the seller of the property.
Your lender will register a mortgage against the title of your new property and provide funds for purchasing it. On the other hand, your property conveyancer will ensure that any existing mortgage on the title to the seller is discharged and all clauses on the sales contract are met.
But what happens after the settlement day? Here are some of the things that you can expect:
If you are the seller of the property:
The balance of the sale proceeds will be deposited to your nominated bank account. These sale proceeds will be less than the funds needed to pay your mortgage as well as any adjustments. The remainder of the fee will likewise be paid. You will also be responsible for the rates as well as other council charges up to and including the settlement day.
If you are the buyer of the property:
You will be able to get the keys to your new property once that agent has been informed of the settlement. The transfer of land will be assessed for stamp duty and registered at the Land Titles Office to document that you are the new property owner. You will be in-charge of paying the stamp duty or land transfer duty. This is important since the property title will not be transferred to you unless you’re done paying this duty.
These are just some of the things that you need to know as a seller or buyer of the property. If anything is unclear, make sure to ask your property conveyancer to avoid any mistake or inconveniences later on.
Do you have other ideas when it comes to conveyancing in Australia? Share your insights in the comments section.