The process of transferring ownership of property both legally and financially is commonly referred to as conveyancing. The course of action can be rather complex, which is why most people opt to seek professionals to take care of the process. The majority of real estate transactions include a general guarantee that ensures the seller can legally transfer ownership, thus protecting the buyer. The activities also include steps to make sure that all taxes and levies, if any, are cleared before closing the transaction. This, among many other processes, can help buyers and sellers transfer a property title as seamless as possible.
There are four major steps in the transfer of ownership of a property. The first step involves meeting with the conveyancer to provide the necessary details and discuss any special requirements or circumstances regarding the purchase and sale of the property. Afterwards, a schedule is created. This happens because the process involves deadlines. The third step is to review the contract and advise of potential risks it holds, or negotiate changes as needed. Lastly, the conveyancer will resolve any issues with the multiple parties involved in the process. These four steps are entailed within the three phases of the conveyance process.
Stage One: Before the Contract
The process of conveyancing involves three stages: before the contract, contract to settlement, and after the contract. Once an individual expresses interest in purchasing a property, the conveyance process begins by giving way to the “before the contract” stage. At this point, experts advise retaining a conveyancer and discussing the transaction. While buyers tend to place a deposit when making an offer, such action is not a binding contract. Buyers and sellers should use a conveyancer to sign a binding contract that removes the property from the market. Before the contract, the conveyancer will make sure that the title deed is clear and in order, and review all aspects of the property that could raise issues during the settlement stage.
Stage Two: Contract to Settlement
Once the process enters the second stage, the contract becomes a binding document between the buyer and the seller. The parties exchange documentation and validate said documents. At this point, buyers will need to arrange payment for stamp duty, review all agreements, and perform an inspection of the property. The conveyancer will calculate costs and send a list of questions commonly known as the title requisition to the property owner. With this document, the seller discloses all relevant information on the property that they may not have previously noted. For example, the seller should release information on a foundation repair, waterproofing, concrete repair or fixes and upgrades that the property will need. The conveyancer will determine a closing date with the other parties involved and prepare all legal documents that the buyer and seller will need to sign, which will conclude with the signing of the settlement.
Stage Three: After the Contract
The process of buying a home does not end with the signing of the settlement. Once this document is signed and the balance of the price of the property and legal fees are paid, the conveyancer will handle the filing of the transfer documents that officially change the property ownership information. The conveyancer will also assist with other transfer documentation and processes including mortgages, titles, and discharges. Although banks typically handle this process if the buyer is obtaining a loan, the conveyancer may oversee the transaction or handle the stage if the buyer did not obtain a mortgage to pay for the property. The process itself can be complex and involves several parties and many legal documents. Although buyers can follow the steps, using an expert like Gold Coast conveyancing solicitors will make the process easier and faster.