Buying a home is the biggest purchase you’re ever likely to make. Making sure you’ve got a great conveyancer to handle all the legal particulars that arise with the transaction is an absolute must.
If you’re new to the game, you probably aren’t aware what an essential role a conveyancer will play in the successful purchase of your home. A conveyancer is someone who specialises in the legal aspect of the transfer of property from one person to another. The first time you’re likely to hear about these wonderful creatures will no doubt be when your bank or estate agent tells you that you need one!
Buying a house is a complicated dance so partnering with someone who already knows the steps will take a huge amount of stress out of the whole ordeal. They’ll provide a firm hand in the small of your metaphorical back and won’t stomp on your toes, even when you go left and were supposed to go right.
For most of us, reading wordy legal documents is not at the top of our exciting ‘To Do’ list and even if we do make it through to the last page, we may find out the amount we’ve actually understood is staggeringly low. At the very least, of their many responsibilities, your conveyancer will help you understand exactly what you’re purchasing and how to execute that purchase smoothly. Oh yeah baby, that’s legal smooth, the best kind.
So just pop on some Barry White and relax because here’s all of the stuff your conveyancer will take care of:
- Reviewing, preparing, and lodging all legal documents
- Researching property titles
- Arranging building and pest inspections
- Examining strata reports, if the property is in a strata scheme
- Dealing you to any planned developments that may affect your property
- Giving you peace of mind
But First: The Difference Between Conveyancers Versus Solicitors
Just to sort this out first for anyone wondering about the difference, it’s simple:
Conveyancers deal specifically and only with property, whereas regular solicitors are not as specific to property — their level of training in the law is higher than that of a conveyancer, but their field of expertise is usually much broader.
But, there are solicitors that deal specifically with property, which means their training and expertise surpasses that of conveyancers. When it comes to homebuying, these property solicitors are really top of the pile. Their services will require you to dig slightly deeper into your pockets, but the payoff is more than worthwhile.
When you consider that this is likely to be the single biggest purchase of your life, that little bit of extra spend on legal arrangements can go a long, long way.
Having said that, it’s stilI perfectly fine to use a conveyancer and if you’re still unsure of where to start after all of this, ask someone in the know that you trust who they used. No doubt the recommendations will come in thick and fast if you put the word out. People like to help and in this particular field, the best help you’ll get will be from a vetted professional.
So while this article is about conveyancers, it’s worth mentioning that a lot of the information here also applies to property solicitors.
Where were we? Ah yes, the dancefloor. Let’s break down this complicated choreography one step at a time.
Your Conveyancer Reviews, Prepares, & Lodges All Legal Documents
You can engage a conveyancer from the moment you start looking for a property, or you can wait until you’ve found something you want to buy. Either way, you’ll need one as soon as a contract is waved at you by a real estate agent.
This contract will be the first legal document you’ll come across on your road to home ownership and is necessary when you want to make an offer on a home or when you’re wanting to bid for a home at auction.
Your conveyancer will review the contract, advise you of any risks, and help to protect your interests by identifying any terms that might need to be negotiated on your behalf or that you want altered, for example: longer settlement periods, reduced deposits, and/or additional terms and conditions.
This will ensure you’re buying exactly what you intended to buy and that the property is in the condition you expect.
Then when that moment arrives and you are the successful bidder at the auction, or your offer is accepted, this reviewed and bespoke contract (always specific to the exact house/apartment) can be signed with total confidence. Remembering, of course, you are required to have a holding deposit (usually about 0.25% of the purchase price) ready to go the moment the contract has been accepted by both parties. This is the spit in the handshake deal before the balance of the deposit is received.
Your Conveyancer Researches Property Titles
Conveyancers have access to information from the state government regarding the land that your desired property is perched upon. In most cases, there isn’t much to relate back, but knowledge of any main electrical cables or sewerage/drainage running close to your property is good to know. There can even be discrepancies with boundaries and fence lines that your conveyancer might pick up on, especially if you’re buying a place that’s been vacant for a long time or had the same ownership for decades. Who knows if Old Jim maybe moved the fence a few inches back in the ‘50s?
There’s also the possibility that renovations may have occurred without going through the proper channels of planning and approval.
An example of this would be if you think you’re buying a house with a cool-looking converted garage/granny flat (the kind with the weird toilet) that you assume is totally above-board, but in fact find out too late that the renovation was done without approval. It’s all well and good to be flip about things like this... until something happens and you find you’ve inadvertently voided your property insurance (insurance being a compulsory condition under most lenders).
While surprises can be fun on your birthday, they can be less fun when they put you and your largest asset at risk.
Speaking of surprises...
Your Conveyancer Arranges Building & Pest Inspections
Termites are a legitimate issue, rodents ain’t much fun either, and who knows what that fresh coat of paint and newly rendered wall is covering up?! While you can assume pre-sale beautifications will have been made by owners keen to move their property quickly and for a maximum price, isn’t it better to know the facts?
If an agent is pressuring you to sign a contract quickly without seeking this step, there may be a reason. The agent is never on your side, your conveyancer is, so let them arrange this simple step of assurance for you. Getting a legitimate building and pest inspection will reveal more than your eyes can see (or believe) and is another hook-up your conveyancer will sort out for you.
First time homebuyers often rely on the tricks they’ve learned over their lengthy careers as tenants to do their own checks like: running taps to check water pressure and discolouration, looking inside the cupboards for mould (and who knows what else), or turning light switches on and off to check for faults. While this is an okay place to start, it won’t disclose the hidden deeper issues that only a professional can identify.
Your Conveyancer Examines Strata Reports
If your property is part of a strata, the first and most important piece of information a conveyancer will let you know is what your strata is going to cost you each year. Not only that, but your conveyancer will be able to tell you straight-up if that’s a reasonable amount of money to be paying for strata fees considering the upkeep on the property.
For example, buying into an apartment complex that has a gym and/or pool is going to see your strata fees come in much higher. Strata fees cover basic building maintenance and the upkeep of the entire building and common areas. The fancier the building, the higher the fees.
Another thing that any good conveyancer will look at is the minutes from the last general meeting of your strata committee. Which is great, as it’s certainly nice to know if there are any ongoing problems with the building that houses your property, or perhaps any impending insurrections.
Your Conveyancer Alerts You To Any Planned Developments That May Affect Your Property
This is a fairly specific thing so, for example: Let’s say there’s a vacant block next door to your place. You’d want to know (before you buy of course) if that block is going to become a block of apartments in the near future, wouldn’t you?
Even if you aren’t fussed about construction noise, you might be able to use the knowledge to your advantage when negotiating the price. Or, on the other hand, if you’re are a shift worker or maybe have a young family, you’ll want that information before being woken every weekday by circular saws, drills, and worst of all — commercial radio.
Your Conveyancer Deals With Everything On The Day Of Settlement
The day your first house settles will most likely come after months of endless effort and hoop jumping and now you’re done, just done!
It’s all good though because you have your conveyancer to work the levers and press all of the buttons required to finalise the sale. All you need to do is make sure the champagne is on ice.
Conveyancers take ‘finalising’ the sale seriously — they’ll subtract their fee at the time of settlement having already worked it into the paperwork when sorting out the finer points with your lender. Finalising really means it’s final — there’s nothing more for you to do because they’ve accounted for everything.
The best bit is that they’ll only communicate what you need to know so you don’t have to freak out over any question marks floating in the air. Their dialogue is usually along the lines of: “Don’t worry, we’re all ready to go here,” followed by a phone call or email saying, “Congratulations!”
Pop! That was the champagne cork.
Your Conveyancer Gives You Peace Of Mind
We cannot recommend strongly enough that anyone who purchases a property also hires a property solicitor or licensed conveyancer. This should be done before you start looking for properties, and they need to be independent of your broker, lender, or real estate agent.
Your conveyancer needs to be someone who is on your side and is working with you and for you. Your conveyancer will walk and talk you through all the legal aspects of buying a home. You won’t need to remember everything and you won’t have to labour over the research on topics you don’t understand, which will free you up to do the important stuff like earn the money and find the house.
And unlike any real estate agent or commission-based salesperson, your conveyancer has your back!