Buying, selling, transferring or subdividing property is not common for everyone, and it can seem overwhelming to navigate through the conveyancing process. You don’t have to worry if you work with an experienced conveyancer or solicitor in Cairns who specialises in property. They can make the process easier. The next steps typically occur during the conveyancing process.
A Step by Step Guide to the Australian Conveyancing Process
1 – The Contract of Sale
The contract is a written agreement that details the agreement made by the buyer and seller. It outlines the price, date, and conditions of buying and selling the property. Once this contract is signed, it is considered to be legally binding between the two parties.
The exchange is when the buyer and seller officially hand over the property. The buyer and seller exchange signed copies of the contract. This can be done by signing them in the presence of a conveyancer or solicitor or having a representative do it on your behalf.
3 – The ‘Cooling-Off’ Period
This is a time when the buyer and seller have a chance to change their minds. The period lasts for a maximum of 5 business days after the exchange. During this time, either party can cancel the sale.
4 – Building and Pest, and Finance
A building and pest report is a form of inspection that determines the condition of the property and any possible damage. The buyer’s conveyancer or solicitor will arrange for this to be done. The money paid for the report is usually split between the buyer and seller.
A finance report is ordered by the lender to identify any property issues or defects. It also determines the suitability of the property for the loan the buyer is applying for. If the loan is approved, this report is sent back to the lender.
5 – Stamp Duty
Stamp duty is a state tax that is paid when a property is bought or sold. It is calculated based on the purchase price.
6 – Mortgage Payout Figure
Once the bank approves the loan, they will provide the net loan figure to the buyer. The net loan figure is the amount of money the buyer’s conveyancer or solicitor needs to pay to the seller. The amount of money paid to the seller is usually split by the buyer and seller.
7 – Adjustments
The buyer and seller may need to split the difference when it comes to the mortgage payout figure. This is typically done by the solicitor acting on behalf of the seller.
8 – Settlement
Settlement is when the conveyancing process is complete. The completion of this process officially transfers the ownership of the property from the seller to the buyer.
The conveyancing process can be a lot to take in. However, it is an important part of the buying and selling process. It helps to ensure any issues or concerns are taken care of in order to ensure the property is in perfect condition. Working with an experienced conveyancer will help ensure a smooth process and successful transaction.
If you need conveyancing lawyers in Redland Bay, come to Bickell and Mackenzie. We are a well-known family-owned law firm within the Redlands area. We specialise in Conveyancing (both buying and selling houses, commercial businesses and retirement homes), Wills and Estates Administration and Family Law.