Howdy! I'm Dan Smith and I live with my wonderful family in Perth. This is my legal blog which aims to look at every part of the legal system. I should point out that i'm not a lawyer myself. However, my good friend Stan has been representing people in court for many years. I find Stan's work fascinating and I love asking him questions. I have even done a bit of my own research into the legal system. I decided to pull everything together here so I could organise my thoughts while also providing useful info for others. Thanks for checking out my blog!
Property buyers should be aware of the different statutes governing the conveyancing process in Australia. Each state and territory has its unique conveyancing laws to guide the process of property acquisition. Therefore, buyers should engage a professional to guide them through the various stages. This article highlights the different steps involved in conveyancing.
Pre-Contract
Expressing interest in a particular property is usually the first stage in an asset acquisition. At this stage, a buyer looks for a property that suits their requirements and budget. After that, a buyer places an offer. However, this is not legally binding since no contractual agreement has been made. A buyer should engage a conveyancer to understand the intricacies involved before the solicitor representing a seller prepares a draft contract. A draft agreement contains crucial information about the asset on sale, including the owner, title deed, restrictions on the property, and any pending charges. The pre-contract stage is essential since it addresses any encumbrances present. Once a seller and buyer have agreed on the terms of sale, they can proceed to the exchange stage.
Exchange
During the exchange phase, a contract becomes legally binding to both a seller and a buyer. Usually, solicitors representing the two parties meet and exchange signed documents. At this stage, solicitors verify that all requirements have been observed within a contract. The representatives then date and transfer the agreements. At this juncture, a contract is legally enforceable. The signing of the deal paves the way for financial transactions.
Payment
After signing a contract, a buyer's representative is required to deposit a check with the seller's solicitor. The agent then holds the check until the settlement process is finalised.
Stamp Duty
A buyer is expected to pay stamp duty for a property being purchased. The liability is acquired when a buyer and seller exchange contract documents. Legally, a buyer should pay the stamp duty up to 2 weeks before settling a property acquisition agreement.
Cooling-Off
In most jurisdictions, a cooling-off period is provided to enable a buyer to rescind a contract. The cooling-off period usually lasts for five days after an agreement has been signed. If a buyer calls off a deal, they forfeit a percentage of the property value.
Settlement
Settlement is the last step in conveyancing. Here, a buyer assumes ownership of property legally. Most importantly, a buyer should ensure all pending charges are paid, with a seller being tasked with lifting all caveats on the property in question.
Share2 June 2020
