It is important to understand how conveyancing works if you are buying a house or selling your home.
First, you will need to complete, sign, and return all required documents as soon as possible. You’ll also need to provide a proof of identity and, if you’re purchasing, evidence of where your funds are coming from.
- Preparation of the Contract
Your solicitor or conveyancer will prepare a document during the conveyancing services melbourne process. This will detail everything agreed between the parties, including price, terms and conditions, fixtures and fittings and any other information that may affect the sale of the property.
When the draft contract has been reviewed, it will be sent to the buyer’s solicitor for review. This is an important stage of the conveyancing process as it ensures all relevant information is disclosed and no adverse matters are uncovered that could affect the contract.
During this time, you should also be aware that both parties can pull out of the contract without any penalties. If you decide to pull out, you can sue the seller in breach of contract and you may be able keep your deposit.
- Preparation of deeds
During the conveyancing process, a number of documents are required to be prepared. These documents include a conveyance document, mortgage documents, and certificate of lien.
The conveyance deed acts as proof that property has been transferred from one owner. The document contains important information such as the name of the owner, address, purchase price, title and legal rights.
In addition to this the conveyancing process also involves a number of other technical esoteric matters. These include pre-completion searches, settling of taxes and charges, confirming financing and preparing all the documents for final settlement. The conveyancing process is a daunting task and requires expert knowledge to ensure that all the right details are covered in a timely manner.
- Preparation of the Mortgage Documents
During the conveyancing process, it is important to take note of any information your conveyancer may send you. This includes mortgage documents. You’ll need to carefully read them and ask any questions.
Once the mortgage documents are prepared and signed, they are then sent to your lender for their approval. This is a very important step as it ensures your mortgage lender understands all the relevant information required for them to grant you a mortgage loan on your new home.
Once all information has been received by your lender, they will conduct an appraisal of your property. This is to verify that the property is not worth less than you are paying, and to determine if they will grant you a mortgage.
- Exchange of Contracts
The exchange of contracts is an important stage in the conveyancing process. It is the point at which a sale/purchase becomes legally binding. Buyers and sellers can cancel the transaction at any time without legal liability.
This occurs when the buyer’s lawyer sends the contract to the seller’s attorney and vice versa. This can often take place over a phone call and then the two contracts are physically swapped.
This is also the point at which the deposit (usually 10% of the purchase price) is paid and ownership transfers to the new buyer. This can be a stressful time as the money has to be transferred, property searches carried out and any other requirements dealt with before the deal can go ahead.
- Completion
The completion of the conveyancing process happens when the final paperwork has been signed and monies have been transferred. This could mean that you are now able to move into your new home, depending on whether you are selling or buying.
During the final stage, you will be asked to complete several forms provided by your solicitor. These forms will be used by your buyer and their solicitors to ensure that all information is correct before they proceed with the sale.
The property will then be inspected by the conveyancer to ensure that all checks have been completed and no legal concerns are present. These may include checks on the local authority, chancel liability and drains.
