Understanding the Conveyancing Process
Conveyancing is the transfer of property ownership from one person to another. During conveyancing, the buyers and sellers need to compile the necessary documents for the transfer. It's usually advisable to involve a conveyancer during property transactions to ensure the process goes smoothly without any legal hiccups. Here are the main steps involved in conveyancing.
Expression of Interest
The conveyancing process starts when a buyer expresses interest in a piece of property. Before you propose your offer for the property, you need to talk with a conveyancer and communicate to them your goals for the purchase. Your conveyancer will perform all the background checks on the property in question.
As a buyer, you'll have to pay a deposit to a real estate agent to express your interest in the property. However, paying a deposit doesn't form the basis for a binding contract. This is only a sign of good faith, which means you can withdraw your offer any time.
The transaction becomes binding when you and the seller sign a contract. It would help if you involved a conveyancer in the process of creating and reviewing the contract. The contract has legally binding terms and conditions that should be examined clause by clause to ensure you don't miss anything.
The most significant phase of conveyancing is the exchange of contracts. After this stage, there's a cooling-off period, which allows you time to rescind the contract if it's not satisfactory. This is also the time to check for any issues with the property. Your conveyancer will send the seller requisitions on the title to determine any information that had not been disclosed during the inspection of the property.
After everything is cleared out at this phase, the next step is the exchange of the revised contracts. The exchange takes place between your solicitor and the seller's solicitor. The solicitors need to confirm that the contracts are the same. When the contracts are dated and exchanged, the contract is legally enforceable. This means both parties should comply with the terms and conditions of the contract.
During the settlement phase, you're required to pay up the balance of the property's buying price. Also, you're required to hand over the order to the agent. This permits the real estate agent to release the deposit minus their commission. At this point, the seller will give you the transfer and title documents.
Usually, the settlement is attended by the solicitors. Your solicitor should make sure all the documents are in order. The representatives of your mortgagee may be present at the settlement to secure their rights on the new mortgage. Finally, the transfer and title documents will be signed, and the lender will hold on to the title documents until you complete the mortgage.
To learn more, reach out to a conveyancing service.