Sydney property conveyancing involves the process that allows an owner to sell a property to a buyer. Additionally, conveyancing includes both individual and entity transfers. The Real Property Act 1900 (NSW) discusses the declaration of titles to lands. Additionally, this act also discusses facilitating transfers of land and property.
Sydney property conveyancing has a complex nature that involves numerous transactions. Hence, both vendors and purchasers must meet with a legal practitioner to guide them properly in conveyancing. Read this article to know more about Sydney property conveyancing.
What Is Sydney Property Conveyancing?
Generally, Sydney property conveyancing involves the owner and the buyer entering into a contract that includes terms for selling property. The procedure ends when there is a settlement between the two parties. This includes a title transfer with an agreed purchase price.
Sydney property conveyancing essentially allows a buyer to pay for a property with full knowledge of what they’re paying for. For example, a buyer would want to know if a property is subject to any restrictions on use. Similarly, Sydney property conveyancing allows a seller to transfer title to a buyer. Consider hiring a conveyancing solicitor for such circumstances.
What Does A Sydney Property Conveyancing Solicitor Do?
What services does a conveyancing solicitor in Sydney typically offer? Both the buyer and seller have numerous duties under a contract that need to be performed before significant dates. Essentially, missing a critical date might cost the seller the sale.
Additionally, missing a date could cost the buyer their deposit money and the opportunity to purchase the home. A Sydney property conveyancing solicitor will typically do the following when representing a buyer:
- Conduct property and title searches — look for easements, title type, historic limitations, and so forth;
- Prepare, execute, and file legal paperwork, such as transfer documentation;
- Calculate the rate and tax adjustments;
- Attend to the property settlement. A Sydney property conveyancing solicitor will represent you and assist you with property settlements.
- Consult with your bank or financial institution when organising final payments;
- Keep track of important dates; and
- Represent the buyer’s interests in negotiations with a seller or their representative.
Meanwhile, a Sydney property conveyancing solicitor will carry out the following when representing a seller:
- Set up the execution of legal documents;
- Can also attend to the property settlement. A Sydney property conveyancing solicitor will represent you and assist you on property settlements.
- Keep track of important dates; and
- Represent the seller in transactions with the buyer, such as requests for date extensions, inquiries regarding searches, and so on.
Contracts Of Exchange in NSW
When you purchase or sell a home, your conveyancer will refer to the “exchange of contracts”. Purchasing or selling property in New South Wales (NSW) requires a contract of sale. The contract of sale mentions specifics about the selling of property, such as the:
- Names of the vendors and purchasers on the title
- Respective estate agent
- Legal practitioners
- Licensed conveyancers
- Purchase price
- Special conditions that the purchaser may need to be wary of
The vendor’s statement summarises important information affecting the property being sold. This includes details of the following:
- Mortgages, covenants, or caveats lodged over the property
- Land easements. Easements can enable someone to access or enter property without having legal possession of it.
- Development zones and overlays relating to the property such as heritage overlays
- Whether the property is in a bushfire-prone area
- Any proposals regarding access to the property via public roads
- Particular outgoings the property is subject to (council rates, water rates, and land tax)
- Details of the owner’s corporation should the property be in an apartment area, unit, or complex
Additionally, this must be accompanied by a number of prescribed documents under the Conveyancing Regulation 2010 under Schedule 1. The documents are:
- Section 149 (2) Certificate – (Council zoning of land residential or commercial, etc.)
- Service Drainage Diagram – (Location of services)
- Title & Title notations – (Owners & restrictions on Land use)
- Deposit Plan or Strata Plan – (Location of Lot). A strata plan is a partition of a parcel of land into individual lots and common property.
The vendor’s solicitor prepares these documents to provide property information to the potential buyer. In NSW, a solicitor will prepare the contract of sale to enable the selling agent to market the property. Then, they insert the purchaser’s details and price conditions in the contract.
Additional Required Documents
There will be additional documentation involving a bank, depending on whether you are a buyer or seller. A seller will need to sign and give a Release or Discharge Authority directly to the bank. This notifies the bank of the selling of property. This Release also gives the bank details of the conveyancing lawyer.
Consequently, this allows the conveyancing lawyer to liaise with the bank. If the buyer obtains finance, the buyer will need to enter into loan documentation with the bank. This will include a mortgage that the buyer provides in favour of the Bank.
There are cases where the Contract is entered into a buyer obtaining finance. The buyer should obtain an unconditional written Loan Approval from the Bank before the Finance Date in the Contract. There are also Settlement Statements that will set out money transfers at settlements in exchange for property titles. This also includes cheques that various authorities will receive.
Calculating the final settlement amount requires deducting fees that require removing a mortgage from the title. The statement also takes into account various adjustments on outgoings such as rates and water charges permitted under the contract.
These adjustments essentially allow the seller to pay their share of these charges before settlement. Additionally, it allows the buyer to pay a portion of the charges linked to the period after settlement. Missing out on these adjustments can be costly.
How Can Our Conveyancing Solicitors Help?
Buying or selling property and real estate requires respect to a number of laws in Australia. This is why JB Soliciotor’s conveyancing solicitors play a vital role in the conveyancing procedures. Our conveyancing solicitors offer services including legal searches for your contract of sale.
With our jargon-free legal advice, we can clearly answer queries about the proposed property from prospective buyers. Additionally, we can also make negotiations and amendments between sellers and buyers before exchanging contracts.
Contact JB Solicitors today for your Sydney property conveyancing needs.