What is a conveyancing process? How can you make this process as easy as possible? Read on, we’ll help you understand the conveyancing process in just 7 simple steps.
First of all, conveyancing is the process to transfer the ownership of a real estate from the current owner to a new owner. In other words, it means transferring a house or land from one person to another.
It’s a long process and it feels it may take forever, but with patience, the right information and all the legal documents; you can buy a property in all States and Territories of Australia.
Let’s take a look at the procedures and steps:
- Step 1 – Make an Offer and Contract of Sale
- Step 2 – Pay the Deposit, but Consider the Risks
- Step 3 – Offer to Purchase
- Step 4 – Enjoy a Cooling-off Period
- Step 5 – Remember the Deadline for Completion and Send the Requisitions
- Step 6 Considerations for Foreigners
Step 1 – Make an Offer and Contract of Sale
The contract of sale is the first step to purchase a property in Australia. Indeed, it is the most important legal document for binding both parties to follow their contractual obligations. Additionally, a very detailed contract will avoid unnecessary disputes between the vendor and purchaser. So, only legal experts should prepare this document .
When you as a potential purchaser make the decision to purchase a property, you can make an offer and, if the vendor accepts your offer, you can enter into negotiations on the price and conditions of the sale.
Step 2 – Pay the Deposit, but Consider the Risks
If you decide to make the first deposit as a sign of interest in the property, you must be willing to set an amount with the vendor. This doesn’t mean that there is a binding contract or that the property is automatically yours. The payment just shows the vendor that you’re serious about your offer and you’ll continue the legal steps to settle the final payment.
Consequently, if the vendor accepts your offer, you should pay an agreed-upon deposit amount. By the way, bear in mind that responsibility for property damage rests with the vendor until the vendor and purchaser achieve an agreement. That’s why it’s critical to examine the contract of sale with your legal representative to ensure that everything is in order. You may choose to insure the property prior to settlement if you’re not sure that the vendor has a valid insurance policy.
Step 3 – Offer to Purchase
During this stage, the vendor and purchaser will agree on a final contract, and it typically includes:
- The final purchase price
- Inspection reports
- Special conditions
- Settlement date.
Step 4 – Enjoy a Cooling-off Period
Once contracts have been signed and exchanged, you’ll have a cooling-off period and in this stage, you can withdraw from the contract before the end of the cooling-off period and seek any amendments to the contract during the cooling off period. The Darwin conveyancer will review the contract within the cooling-off period. It is important to ensure that the conditions of purchase are reflected in the contract.
Step 5 – Remember the Deadline for Completion and Send the Requisitions
The time to complete the purchase may be short or long depending on the negotiations and the conditions of the property. You must ensure that you meet the provisional dates on time and ensure that you properly observe and perform obligations imposed on you by the contract.
Step 6 Considerations for Foreigners
If you’re not an Australian citizen or permanent resident, you’ll most likely need to obtain approval from the Foreign Investment Review Board (FIRB). You will need to ensure that the contract is subject to FIRB approval.
Popular locations for properties
Major cities such as Sydney, Melbourne, Brisbane or Perth, have the biggest increases in property prices, and if you want to make your money worthwhile, you can look for other cities and maybe, rural areas. Just remember that rural in Australia literally means remote and travelling long distances. In cities, public transportation has a very high standard with buses, trains and taxis. However, once you leave the city centre, be prepared to travel long distances. Just make sure to enjoy the wonderful scenery.
In addition, consider weather factors when choosing a location because some areas are extremely hot during the summer while other places are rainy … more than you expect.
Step 7 Concessions
Consider whether you would be eligible for any stamp duty concessions or grants. Whether you are a first home buyer, or have previously purchased before, you may be eligible for more than one grant and/or stamp duty concessions. Enquire this with your conveyancer/solicitor.
In the end, whether you’re selling or buying a property, it’s a good idea to know what you will face in this process. Speak to your conveyancer/solicitor about buying a property. There are many factors that come into play and a lot of documents that need completing, it is important that you are in capable hands and with the right support, you will purchase the property of your dreams sooner than you expect.