Buying or selling a property is one of the biggest decisions in life. The process can quickly become complicated with all the legal and financial details involved.
This is where conveyancing steps in to ensure a smooth and secure transfer of ownership from one party to another.
But what exactly is conveyancing? Why is it so important in property transactions?
In this blog post by Hoe Lawyers, we’ll explore everything about conveyancing. Including the stages and the costs involved. We’ll discuss how a conveyancing solicitor can save both buyers and sellers from costly mistakes. Additionally, if you need an expert assistance, our team at Hoe Lawyers specialises in conveyancing services in Perth. We offer affordable and transparent legal support to ensure a hassle-free transaction.
So, without further ado, let’s explore how conveyancing works:
What is Conveyance in Real Estate?
“Conveyancing is the process of transferring ownership of real property from one person to another.”
It is an important step in the property buying or selling process. It involves several tasks. Such as verifying the property title, conducting searches, preparing legal documents, and managing the settlement process.
What is a Conveyancer? What Do They Do?
“A conveyancer is a licensed professional who makes sure the process of buying and selling property follows all legal requirements and regulations.”
Their main goal is to make sure the property transfer is legally sound and free from any complications. Let’s explore some of the key tasks’ conveyancers do:
- Checking Property Ownership: The conveyancers verify the property’s legal ownership. They make sure there are no claims or disputes over the title.
- Investigating Property Records: They search through local council records to find any restrictions, easements, or zoning laws that can affect the property.
- Reviewing Legal Documents: The conveyancer prepares and checks all legal documents. Including contracts and transfer papers, to ensure accuracy.
- Managing Mortgage Paperwork: They ensure the buyer’s mortgage documents are in order. Confirming that the buyer has secured the necessary financing.
- Calculating Settlement Costs: A conveyancer provides a breakdown of all costs involved in the transaction. Including conveyancing fees, stamp duty, and other charges.
- Verifying Identities: The conveyancer checks the identities of all parties in the transaction to prevent fraud.
- Handling Ownership Transfer: The conveyancer manages the official transfer of ownership from the seller to the buyer. They register this change with the appropriate authorities.
How Does Conveyancing Assist Buyers and Sellers?
Let’s have a quick look at how conveyancing helps in property transactions:
| How Conveyancing Assists Sellers | How Conveyancing Assists Buyers |
| 1. Contract Preparation | 1. Preparing Legal Documents |
| The conveyancer drafts the contract of sale accurately. They make sure to avoid errors that can lead to disputes or price negotiations. Example: A contract error showing a lower sale price can result in the buyer demanding a discount. | The conveyancer prepares and reviews contracts, land transfer documents, and mortgage paperwork to ensure everything is correct. Example: Correcting errors in land transfer documents. Ensuring the buyer legally owns the property. |
| 2. Organising Property Inspections | 2. Organising Property Inspections |
| Arranges inspections to find any property issues that need to be addressed before the sale. Example: An inspection can reveal termite damage that the seller wasn’t aware of. | Organises thorough inspections to identify potential property defects before the purchase. Example: Finding roof damage in advance can save the buyer from unexpected repair costs. |
| 3. Coordinating with the Buyer | 3. Reviewing the Vendor’s Statement |
| Coordinates with the buyer’s team to ensure the property is ready for settlement. Example: A missed document can delay the sale, causing frustration for both parties. | The conveyancer reviews the Vendor’s Statement to uncover any issues, such as restrictions or unpaid fees. Example: Identifying a zoning issue can help the buyer reconsider or negotiate the purchase. |
| 4. Preparing for Settlement | 4. Mortgage and Legal Advice |
| Prepares all necessary documents and managing the transfer of funds. Example: Proper preparation to avoid last-minute issues that can delay the sale. | Provides advice on mortgages, financial details, and legal obligations to protect the buyer’s interests. Example: Making sure the buyer understands mortgage terms. It helps them avoid unfavourable loans. |
| 5. Ensuring Smooth Settlement | 5. Managing Financial Settlements |
| Ensures all financial and legal matters. Such as the transfer of funds are handled correctly to prevent delays. Example: A smooth transfer of funds ensures the buyer gets possession on time. | Ensures all financial matters are settled on time. Such as paying the purchase price and associated costs. Example: Preventing delays in payment ensures the seller doesn’t cancel the contract. |
What is the Process of Conveyancing in Perth? | 5 Stages
The conveyancing process is quite fascinating. It’s because many steps take place behind the scenes when transferring property. While each settlement can be different, most follow a similar path. Here’s an easy overview of a typical property buying or selling process with a conveyancer:
Stage #1: Pre-Contract
Before you sign any contracts. It’s wise to hire a property lawyer to review your agreement. Getting legal advice before signing can help you avoid unexpected costs later on.
This stage typically includes:
- A face-to-face consultation with an experienced lawyer.
- Legal guidance on important terms and conditions of the contract. Including any special clauses that can benefit you before making an offer.
Stage #2: Exchange of Contracts
Once the contract of sale is ready. Both the buyer and seller will sign it. The real estate agent then facilitates the exchange of contracts.
This step involves:
- Agreeing on a settlement date.
- Including any special conditions in the contract.
- The buyer paying a deposit.
At this point, you will also choose a conveyancer to help with the process.
Stage #3: Post-Contract
After the contracts are exchanged, the real conveyancing work starts. The tasks during this stage include:
- Reviewing the contract of sale to ensure all terms are clear.
- Conducting a title search.
- Preparing necessary government forms.
- Notifying government authorities about the property transfer.
- Conducting required government searches.
- Coordinating with the buyer or seller’s bank for settlement preparations, if necessary.
- Paying the applicable transfer (stamp) duty on behalf of the buyer.
- Calculating and adjusting rates and taxes.
- Finalising settlement preparations.
Stage #4: Settlement
On the agreed settlement date, the conveyancer will make sure everything is ready to proceed. They will:
- Confirm both parties are satisfied to move forward.
- Arrange payment for any outstanding rates.
- Ensure the legal transfer of property ownership takes place.
You might wonder when to pay for conveyancing services.
Typically, the conveyancers fee is deducted from the sale proceeds (for the seller) or the purchase equity (for the buyer) during settlement. This means you usually don’t need to pay upfront.
Stage #5: Post-Settlement
After settlement, the conveyancer wraps up any remaining tasks. Such as notifying government agencies about the property transfer. Providing the client with all final legal documents and the property title.
A good conveyancer will keep in touch throughout the process – acting as a liaison between the buyer and seller to ensure everything goes smoothly.
What is the Difference Between a Conveyancer and a Solicitors?
Here’s an easy comparison between a conveyancer and a solicitor:
| Aspect | Conveyancer | Solicitor |
| Qualification | Licensed expert in property law | Trained lawyer with a broader legal knowledge |
| Specialization | Focuses on property transactions | Handles various legal issues beyond property law |
| Services Provided | Manages legal processes and paperwork for buying/selling property | Performs all conveyancer tasks and offers additional legal advice |
| Scope of Work | Primarily involved in property transactions | Can provide advice on a wide range of legal matters |
| Title | Not a lawyer | Fully qualified lawyer; can specialize in conveyancing |
Conveyancer vs Solicitor | Whom to Choose When Buying a House?
Both solicitors and conveyancers can prepare documents and provide legal guidance for your property purchase.
But it’s important to remember that; Solicitors are fully qualified lawyers. While conveyancers are professionals licensed by state regulators specifically for property matters.
When deciding who to hire; Consider your specific needs and the complexity of your situation. Both can assist you in buying a house. Anyone of them can be better suited to your circumstances.
For smooth property transactions, a conveyancer can be sufficient. But if you anticipate needing broader legal advice, a solicitor can be the better choice.How Much Does Conveyancing Cost in Perth, WA?
When buying a property in Perth, conveyancing fees typically range from $1,200 to $1,900. If you’re selling a property, you can expect to pay between $800 and $1,500.
These costs can vary based on the specifics of the transaction and the conveyancer you choose.
Breakdown of Conveyancing Fees in Perth
For a conveyancing fee of around $1,400, you might find the following breakdown:
- Approximately $600 for search fees
- Approximately $800 for professional fees
What Are Conveyancing Search Fees?
Essentially, a ‘search’ helps your conveyancer determine if there are any legal reasons that can affect the sale of the property. It checks for local council regulations, environmental restrictions, and any claims against the title.
Common searches can include:
- Local land charge searches
- Register searches
- Environmental assessments
- Local authority searches
- Drainage and water searches
The costs and types of searches will depend on factors like the property’s location and the local council.
What Are Conveyancing Professional Fees?
Professional fees cover the conveyancer’s time, advice, and office costs. This means these fees go towards the administrative work and consulting needed to complete your conveyancing effectively.
DIY Conveyancing | Can I Do My Own Conveyancing in WA?
Yes, you can technically handle conveyancing on your own in Western Australia.
But it’s not recommended. Unless you have a strong grasp of the legal requirements and access to PEXA (Property Exchange Australia).
Additionally, professional conveyancers have indemnity insurance. Which can protect you if any issues arise during the settlement process.
But is it really worth the potential savings to skip hiring a professional?
There are affordable DIY kits available in the market. Despite this, conveyancing can be quite complex. Making even a small mistake can lead to serious financial and legal problems. Like losing your 10% deposit.
For this reason, attempting to do it yourself is generally not recommended.
Think of the Perth conveyancer fee as a form of insurance. It can save you from the stress and complications that can come from handling everything alone. A skilled conveyancer can help you navigate the process smoothly. Saving you time and reducing your worries.
Do you want to simplify your property transfer?
Let Hoe Lawyers Handle Your All Conveyancing Matters
As expert property settlement lawyers in Perth, Hoe Lawyers helps buyers and sellers with a seamless, hassle-free property transfer process. We ensure that all outgoings are fairly apportioned, taxes are fully paid, funds are securely held in trust, and the transfer of titles and business names is completed smoothly.
Since 2009, we have been providing affordable, professional services with no hidden costs.
So, no need to worry about your property matters.
Get a FREE, No-Obligation Consultation Now!
FAQs About Conveyancing
Q1: What is the conveyancing law in WA?
Conveyancing is the legal process of transferring ownership of a property from one person to another. In Western Australia, this process includes various tasks and legal responsibilities to make sure property transactions go smoothly and follow the law.
Q2: What does a conveyancer do?
A conveyancer is a licensed expert who ensures that property transactions meet all legal standards. They manage the legal side of transferring ownership, including preparing important documents, conducting property searches, and communicating with everyone involved in the transaction.
Q3: What are the different stages of conveyancing process?
There are 5 stages of conveyancing in Perth:
- Pre-Contract Stage
- Exchange of Contracts
- Post-Contract Stage
- Settlement Stage
- Post-Settlement Stage
Q4: Can I sell my house without a conveyancer?
While you can technically sell your house without a conveyancer, it’s not advisable. Conveyancers are important for ensuring that the sale goes smoothly and without unnecessary stress.
Q5: Is it better to use a conveyancer or solicitor?
A solicitor is a fully qualified legal professional who can perform the same tasks as a conveyancer. However, solicitors typically have more in-depth knowledge of the law, making them better equipped to handle complicated or unique situations.
Q6: Is conveyancing the same as settlement?
In Australia, a conveyancer is also referred to as a settlement agent. Many people choose to hire a settlement agent (or conveyancer) to make sure all legal requirements are met during the process.
Q7: Who pays the conveyancer when buying a house?
The buyer is responsible for paying the conveyancer’s fees when purchasing a house.
Q8: What are the common conveyancing issues and how to avoid them?
Some typical conveyancing issues include
- boundary disputes
- unpaid debts
- planning restrictions
To avoid these problems, it’s important to work with a knowledgeable and experienced conveyancer. Perform thorough property searches and ensure that all legal requirements are satisfied.