If you are located in NSW conveyancing is a process for property sellers and buyers to complete step by step. It involves several steps, before the contract, the exchange of the contract, awareness of signing the contract and lastly the settlement.
What is the Conveyancing Process
Before the contract
Sellers – have their solicitor prepare a draft contract to check ownership, rates, charges, restrictions, certificates and various other legal requirements.
Buyers – view a potential property, perhaps receive a contract and have their conveyancer review it for them prior to or during the offer process.
Exchange of the contract – binding the buyer and the seller
Sellers – Provide a signed copy of the contract, contracts are checked and confirmed to be identical and contracts are exchanged between both the seller and the buyer. Both the buyer and the seller are now legally bound.
Buyers – The deposit is given usually to the real estate agent to be held in trust, and a signed contract is given along with the deposit. Contracts are checked to be identical and both the parties are bound by the contract.
In NSW stamp duty is payable, it is liable from the day that the contracts are exchanged. Stamp Duty must be paid within 90 days of the exchange, it can, however, be paid in full prior to settlement or at settlement if required.
Cooling off or 66W certificate
It is a legal requirement to have a cooling off period of 5 business days. This time allows the purchaser to change their mind but if they do then they must forfeit 0.25% of the purchase price. For example, on a $500 000 property, this would be $1,250.
A majority of sellers request a 66W certificate – this waives or shortens the cooling off period and speeds up the exchange and settlement process.
Inspection of the property
The purchaser of a property is able to have a prepurchase inspection within the 3 days before settlement. This inspection is to ensure that the property is going to be left in a clean and clear condition and all possessions have been removed. It is at this time that the purchaser can pause the settlement until any problems are rectified/resolved. The settlement may even continue with the buyer withholding part of the final payment until any problems are resolved.
This is the party of the process where ownership exchanges hands. prior to this moment the conveyancer will be completing all the required checks and finalising figures for the settlement. The transaction will be registered and the transfer official.
Keys – Immediately following settlement, keys, remotes, security codes and more will be handed over. Generally, the seller will have given all these items to the real estate agent who completed the sale.
Not all sales and purchases are this straightforward – For all your conveyancing requirements please speak to Select Conveyancing.