Property Transactions: Choosing Between a Conveyancer, Solicitor, or DIY Approach

When it comes to buying or selling a property, using a conveyancing firm or a solicitor is a crucial part of the property settlement process. There are three options available for the transfer of title deeds from the seller to the buyer:

• Using a conveyancer or settling agent,
• Using a solicitor, or
• Opting for a do-it-yourself (DIY) via a conveyancing kit.

While conveyancers typically charge less than solicitors, their costs can vary depending on the specifics of your property transaction. It’s important to keep in mind the added costs of the number of searches requested to be done. On the other hand, solicitors are generally more expensive but can offer a wider range of legal advice related to property structures, trusts, wills, and independent financial legal advice, depending on your financial circumstances and the specifics of your transaction.

It’s worth noting that in Western Australia, you can only use a solicitor for the purchase of a property if that solicitor is also licensed as a conveyancer. Ultimately, the decision to use a conveyancer, solicitor, or DIY kit will depend on your personal preferences and the specifics of your transaction.

What is The Average Time Frame For a Property Settlement?

The length of time it takes to complete a property settlement can vary depending on several factors such as the state, the lender, and the seller. Typically, the settlement process can take between four to twelve weeks. The duration of the settlement is usually determined by the seller and the incoming lender. However, sometimes the outgoing lender may delay the process by taking longer to prepare the discharge. In such situations, your solicitor or conveyancer can negotiate with the parties involved to ensure a smooth settlement process. It’s important to note that settlement is the final stage of the property purchase process during which the buyer pays the remaining balance, and the seller transfers ownership to the buyer. Your solicitor or conveyancer can guide you through the entire process and help you with any issues that arise.

What if There Are Problems With The Purchase Contract?

When buying a property, either as your home or investment property, it’s important to keep in mind that issues may arise with the purchase contract, and it’s essential to know how to handle them. If you encounter any problems during the buying process, it’s recommended that you seek guidance from your solicitor or conveyancer. They can provide you with legal advice and help you navigate through any difficulties that you may be facing.

Your solicitor or conveyancer can assist you with various issues such as disputes over contract terms, unpaid rates or taxes, or problems with the property’s title. They can also offer you guidance on how to negotiate with the seller or their representative, and assist you in resolving any disputes that may arise. It’s important to have professional legal support on your side throughout the buying process to ensure that your rights are protected and any issues are resolved in a timely and efficient manner.

If you’re unsure about the contract terms and conditions, especially when purchasing a Unit or apartment in a high rise, your solicitor or conveyancer can review the contract with you to ensure that everything is in order and that you understand all the terms and conditions relating to Body Corporates and Sinking funds. They can also provide you with advice on any clauses that may be unclear or ambiguous so that you can make an informed decision on whether to proceed with the purchase or not.

Why Might Your Lender Require Insurance Coverage Over a Property You’re Purchasing?

When you’re purchasing a property with a mortgage, most lenders will require that the security is covered by insurance before they will settle the purchase. This is because in the unfortunate event that the property is damaged or destroyed, such as by a fire or natural disaster, the lender needs to ensure that the property can be repaired or rebuilt to its original state.

Depending on the arrangements with your lender, you may not receive the loan funds until the building is insured. While you are not obligated to purchase insurance until the date of settlement, your lender may require evidence of insurance beforehand, which is usually provided in the form of a Title of Insurance or an insurance Certificate of Currency.

On the day of settlement, you or your conveyancer will discuss adjustments to rates and other payments associated with the transfer of property ownership. Your conveyancer or solicitor will request a settlement amount of funds to be transferred to their Trust account to settle and exchange for the title of ownership. Your solicitor, conveyancer, or you (if handling the transaction DIY) will then notify relevant authorities about the change in ownership.

It is important to ensure that you have adequate insurance coverage for your property, not only to satisfy your lender’s requirements but also to protect your investment in the event of unforeseen damage or loss. We can provide advice on obtaining suitable insurance and ensuring that all necessary documentation is provided to your lender and your conveyancer, and solicitor before settlement.

What Should I Look For in a Final Property Inspection Before Settlement?

A final property inspection is an important step in the property buying process that should be carried out a day or two before the settlement. It is essential to ensure that the property is in the same condition as when you first viewed it, and all fixtures and fittings that were part of the sale are still there.

During the final inspection, it is important to check that the property is clean, and all items included in the sale contract are still there. These may include items such as the dishwasher, TV antenna, air conditioning units, curtains, pot plants, above-ground swimming pool, and built-in cinema sound systems. If any of these items are missing, it is important to raise the issue with your solicitor or conveyancer as soon as possible.

It is also important to make note of the type of door entry locks on the property during the final inspection. We recommend purchasing new entry locks to install or having a professional locksmith remove the old locks and replace them the same day you move in. This will ensure the security of your property.

If there are any issues with the state or condition of the property during the final inspection, your solicitor or conveyancer may be able to help you resolve your issues. Therefore, it is important to consult them for guidance if required.

A List of the Law Societies in Australia

It’s recommended to carefully consider all options before making a decision.

Contact your state Law Society for further details about how to contact a qualified solicitor or alternatively Neomoney can recommend a few firms that can assist in the Buying or Selling transaction process.

Conveyancers or settling agents are licensed to provide the same conveyancing services as solicitors, but can only give legal advice relating to property. If you also need advice on other areas, such as taxation advice or your preparation of a Will, or trust structures, you will need to see an appropriate adviser such as a solicitor, lawyer and/or accountant.