Buying -VS- Selling A House: The Conveyancing Process
Written by: Nancy Robertson | Legal Team
If you are a first-time home buyer and have just found your dream home – congratulations! If you are in the market for an investment property or simply looking to sell your existing home, you will need the services of a conveyancer.
Firstly, you should start by shopping around and comparing quotes, look at the reputation of the conveyancer (check out their online reviews) and consider their experience and how long they have been in business. Better yet, it can also be beneficial to talk with friends and family who might be able to recommend a conveyancer that they have used in the past and were happy with their service.
Once you have engaged a conveyancer to act for you, the conveyancing process can begin!
Depending on whether you are purchasing a property or selling a property will depend on the conveyancing process itself, as it will vary depending on which position you are in.
A good conveyancer should be able to handle all of your queries from the very start of your matter, through to the settlement and be able to prepare all the necessary paperwork. A good conveyancer can do all of that and organise your verification of identity checks (if applicable), prepare the Statement of Adjustments, and prepare settlement via the PEXA workspace.
However, a great conveyancer, like the team at Canny Legal, can do all of the above, whilst working alongside you and having the backing of a solicitor.
The Role Of A Conveyancer: Buying -VS- Selling
There are some significant differences between the roles of conveyancing for a purchase or a property to a sale of property.
Do You Need Conveyancing When Buying A House?
Because a transfer of ownership is required when buying a house, it is best practice to employ the help of a conveyancer when purchasing a property. However, it isn’t law.
A conveyancer can help make the legal process of transferring ownership of a property a much smoother experience. As well, a conveyancer will also be able to undertake research around local government records for any unplanned developments, illegal building work or unresolved disputes that could affect your purchase – as well as you!
Buying: The Purchase Process
When you are in the process of purchasing a property, a conveyancer will help you with:
- Reviewing the Contract of Sale;
- Reviewing the Vendor Statement prior to execution (or after, if they have already signed the contract);
- Negotiating with the selling agent as to any amendments required by you to the Contract of Sale;
- Answering any queries in respect of the Vendor Statement; and
- Prepare all necessary documents.
The documents which a conveyancer will prepare on your behalf can include:
- A nomination document – which is then submitted to the vendor’s representative, in the event that the contract allows the nomination of an alternative purchaser (i.e.
and/or nominee”); - Transfer of Land and Acquisition Notice;
- Client Authorisation form;
- Verification of Identity forms;
- State Revenue Office – Duties Online Form;
- ATO Clearance Certificate – ensure receiving a copy of the ATO Clearance Certificate from the Vendor’s conveyancer/solicitor in the event that the property purchased is over $750,000 – if monies are to be withheld from settlement then preparation of the ATO Forms and forwarding funds to the ATO, following settlement;
- Tax Invoice – ensuring receipt of the tax invoice (GST) from the Vendor’s conveyancer/solicitor if the purchase price is “Plus GST” and withhold the GST component of the transaction for forwarding to the ATO; and
- Any other documents applicable to the purchase transaction.
Other matters that will be attended to before settlement occurs…
- Preparation of PEXA and sending invitations to all parties i.e. bank, other conveyancer/legal representative;
- Perusal of the Statement of Adjustments/Settlement Statement from the other parties representative and confirm agreement (or not);
- Inclusion on PEXA of adjustments figure/s and destination line where applicable to pay outstanding rates etc;
- Upload any source of funds i.e. balance of deposit held in trust to the Vendor; and
- Final sign off.
Do You Need A Conveyancer When Selling A House?
Selling a property is a legal process and while you are not required to have a conveyancer or lawyer manage the settlement, managing the documentation and settlement of your property sale can be complicated.
When you have a team of experts who are familiar with the legal process and legal documents and legislation, they are able to provide you with peace of mind and ensure the process runs smoothly from start to finish.
Selling: The Sale Process
When you are in the process of selling a property, a conveyancer will help you with:
- Preparation of the Section 32; and
- Drafting a Contract of Sale.
A Section 32 is a very important document that contains all the information that is required to be disclosed to a possible purchase as it could determine as to whether a proposed purchase offer is made or not. The Vendor Statement should include a copy of the title search, plan, property certificate and if applicable, building permits and other notices.
Once you have obtained the sale of your property, your conveyancer will begin the preparation of a number of documents, which will include:
- Transfer of land;
- Client authorisation form;
- Verification of Identity;
- State Revenue Duties Online Forms – commencement of the transfer forms and invite the other parties conveyancer to complete;
- ATO Clearance Certificate – apply for an ATO Clearance Certificate in relation to withholding of funds from settlement, in the event that the property being sold is over $750,000;
- Tax Invoice – preparation of tax invoice for the sale of the property to be submitted to the purchaser’s representative if the purchase price is “Plus GST”; and
- Any other documents applicable to the sale transaction.
Other matters that will be attended to before settlement occurs…
- Preparation of PEXA and sending invitations to all parties i.e. bank, conveyancer/legal representative;
- A perusal of the Statement of Adjustments/Settlement Statement from the other parties representative and confirm agreement (or not);
- Inclusion of PEXA adjustment figure/s and destination lines where applicable to pay outstanding rates etc;
- Upload any source of funds i.e. balance of deposit held in trust to the Vendor; and
- Final sign off.
Canny Legal + Conveyancing
Canny Legal can assist you with the conveyancing process for both selling a property and also the purchase of a property.
Utilising the skills of a conveyancer means that you receive advice and information from a professional who knows real estate law and specialises in the legal aspects of buying and selling real property.
Canny Legal has the expertise to guide you through every step of the conveyancing process and regularly collaborates with our accounting and advisory team to ensure that all aspects of your transaction are considered. This often includes; planning for tax and stamp duty implications, capital gains tax, structure considerations and also investment advice.
Get in touch with our team if you are preparing for the sale or purchase of a property so we can assist.
