Conveyancing is the process of transferring ownership of a property from the seller to the buyer. It may involve preparation of legal documents, checking for problems or restrictions relating to the property, and transfer of large sums of money.
Who should do the conveyancing?
If you do your own conveyancing, you should buy an up-to-date conveyancing kit. These are advertised, and are available from major booksellers.
DIY involves risks. If you sell and give false or incomplete information in the vendor’s statement, the purchaser may avoid the contract. When you buy, the greatest risk is discovering a problem about the title or the building after you sign the contract.
Conveyancing companies compete with solicitors.
On 1 July 2008 the Conveyancers Act 2006 (Vic) commenced. This is comprehensive legislation that provides a statutory base for the regulation of (non-solicitor) conveyancers in Victoria and deals in detail with licensing, qualifications, professional indemnity insurance cover, the operation of a Property Fund, auditing of business records and other important features. As eligibility to be licensed has various entry requirements depending on experience and competency, it is in your interests to enquire about the company you have selected and see how it is operating under this legislation, or if it is governed by this legislation at the time of your transaction.
A conveyancing company must be registered under this legislation in order to charge fees for its services. The Business Licensing Authority (BLA) has an online public register (www.consumer.vic.gov.au/bla) where you can check the status of a BLA licensee or registrant. You can also request this information by contacting the BLA (see “Contacts”).
Solicitors give advice about all the elements in the transaction. Buyers can obtain advice about financing, using a company as owner, stamp duty, single or joint ownership, taxation implications and the legal documents. Sellers can obtain advice about agents, marketing, tax-effective investment of the proceeds, and documentation.
Solicitors carry professional indemnity insurance to protect you against negligence. The guarantee fund compensates clients who lose money through a lawyer’s dishonesty. Solicitors give competitive quotes for conveyancing.