Whether you’re buying your first home or investing in property, conveyancing lawyers melbourne is a key part of the process. Understanding how it works will help you to make smarter, more informed decisions about your purchase.
Conveyancing is the legal work of a solicitor or licensed conveyancer to help property buyers and sellers in the UK.
The offer
Conveyancing refers to the legal process of transferring property from seller to buyer. It begins when you make an offer for a property, and ends when you get your keys.
During the conveyancing process your solicitor will carry out various searches and surveys of the property to ensure it is worth the price you’re asking for, is free of any mortgages or other encumbrances and that all parties are ready to complete.
After the searches are completed, they will contact your mortgage lender and your buyers’ conveyancers to exchange contracts. They will also arrange title deeds for buyers so they can register as owners with the Land Registry.
It can take a while, especially if buyers need to arrange their finances before the sale can proceed. It is a good idea not to accept an offer. This gives the buyer the opportunity to organize their finances and gives your property the best chance of selling.
The exchange of contracts
The exchange of contracts is an important milestone in the conveyancing process. This involves both the buyer and seller’s legal teams swapping their signed documents and paying a deposit to secure the sale.
Until this point, neither party can back out of the deal without serious financial penalties. However, once the contracts are exchanged, both sides are legally bound to proceed with the purchase.
Both parties must agree on a completion date and deposit to do this. This is traditionally 5%-10% of the purchase price, but can be less these days.
Once these things are sorted, the solicitors for both parties will run through the contract on the telephone and confirm the exchange time and date. They will also establish a completion date. This is the day that the keys are handed to the new owners and the property’s ownership is transferred.
The completion date
The completion date is the day when ownership of a property changes from the seller to the buyer. This is typically between 7-28 days after the exchange of contracts.
Your solicitor will transfer your mortgage funds and deposit money from your lender to the seller’s lawyer to pay the purchase price. They will then call you to let your know when you can collect the keys.
In the run-up to completion, your solicitors will do a final check of all the paperwork. They will also contact banks on your behalf to release your loan funds.
On the morning of completion, your solicitor will transfer the rest of the funds to the seller’s conveyancer. This can be done via CHAPS – a special payment method for property purchases in England and Wales.
Transfer of title
The conveyancing process involves the legal transfer of ownership from one person to another. This can be done by various means, including deeds or contracts.
Usually, the process is managed by a title company. They conduct a thorough search to check for liens and other encumbrances that may limit the use of the property.
The transaction will be completed once the seller and buyer agree on a date. This includes the transfer of title to the buyer and the payment of stamp duty, together with any outstanding mortgages on the property.
Once the transfer of title has been completed, it needs to be registered at the Land Registry. This involves a series of searches to confirm no encumbrances or changes have occurred since the initial searches were carried out. The solicitor will then register the new title deed. This is a critical step of the process and will be overseen by your property lawyer.