Finding the property of your dreams is a remarkable achievement and is worth celebrating. However, before making it yours, you’ll need to acquaint yourself with a good conveyancer. In the world of real estate transactions, conveyancers act as indispensable conduits, ensuring a seamless and secure transfer of property ownership. By entrusting this task to an experienced conveyancer, you can enjoy the peace of mind that accompanies a flawlessly executed property transaction.
What is Conveyancing
Conveyancing is the legal process of transferring the ownership of a property from the seller to the buyer. It involves various legal and administrative tasks to ensure that the transaction is legally binding and all relevant documents are properly prepared and executed.
What happens in the Conveyancing Process?
The conveyancing process typically involves the following key steps:
- Pre-Contract Stage: This is the initial phase where the buyer expresses interest in purchasing the property, and the seller provides relevant information about the property. During this stage, the buyer may engage a conveyancer to perform property searches, review contracts, and provide legal advice. It is never too early to engage a conveyancer.
- Execution of the Contract of Sale: Once both parties have agreed on the terms and conditions of the transaction, both parties sign the Contract of Sale. . This legally binds both the buyer and seller to the transaction. In South Australia, the purchaser is given two clear business days for cooling off; meaning the buyer has the option to withdraw from the contract without incurring significant penalties or forfeiting their deposit if they do so within the two clear business day period. However, if you are purchasing a property at auction in South Australia, there is no cooling off period.
- Pre-Settlement Stage: In this phase, the conveyancer conducts thorough property searches, including title searches, zoning and planning searches, and any other relevant checks. They also liaise with financial institutions, conduct verification of identity and authority checks, prepare settlement statements, and coordinate with all parties involved.
- Settlement: This is the final stage of the conveyancing process where the property ownership is transferred from the seller to the buyer. The conveyancer ensures that all necessary payments are made to authorities, documents are executed correctly, and the transfer of ownership is registered with the relevant authorities.
How Long Does Conveyancing Take?
The duration of the conveyancing process can vary depending on various factors, including the complexity of the transaction, the efficiency of the conveyancers involved, and external factors such as the availability of finance and the workload of government authorities. On average, the conveyancing process in Australia usually takes between 6 to 12 weeks, although it is important to note that this timeline can be shorter or longer based on the specific circumstances of each transaction.
Possible Delays in Conveyancing and How to Mitigate Them
Several factors can contribute to delays in the conveyancing process and ultimately, settlement. Here are some common reasons and possible strategies to mitigate them:
- Incomplete or Delayed Documentation: Gathering all the necessary documentation can take time. To mitigate this, it is important for both the buyer and seller to promptly provide all required documentation to their respective conveyancers upon request.
- Property Searches and Due Diligence: Property searches and due diligence are crucial to identify any potential issues or risks to the transaction. However, delays can occur if there are complications or additional investigations required. Choosing experienced conveyancers who are proactive and efficient in conducting these searches and identifying potential problems can help minimise delays.
- Finance Approval: If the buyer requires finance to complete the purchase, delays in obtaining finance approval can significantly impact the conveyancing timeline. Staying in close communication with the lender and promptly providing any requested information can help expedite the finance approval and loan disbursement process.
- Third-Party Delays: Due to the involvement of multiple parties to a single real estate transaction, anyone can cause timing issues. While these delays may be beyond the control of the buyer or seller, maintaining open lines of communication with all parties involved and ensuring the timely submission of required documents can help minimize potential setbacks. A great conveyancer who is able to foresee potential problems will also help.
What Happens If Conveyancing Takes Longer Than Expected?
Despite best efforts, delays can occur during the conveyancing process. Several common factors contribute to these delays, including incomplete or delayed documentation, intricate property searches and due diligence requirements, finance approval processes, and potential bottlenecks caused by third-party involvement such as banks and government agencies. To mitigate such delays, proactive measures are recommended. Promptly providing all necessary documentation, engaging experienced conveyancers who exhibit efficiency and diligence, maintaining clear lines of communication with lenders, and ensuring timely submission of required documents to all relevant parties can help minimize potential setbacks.
If a settlement is delayed, it is often by just a day or two. Make sure you give yourself a little bit of leeway and avoid booking removalists on the proposed day of settlement. Better safe than sorry.
Whether you’re a first-time buyer or a seasoned investor, Eckermanns have got you covered. Reach out to us today via our website or by giving us a call.
You can also contact us out-of-hours with your enquiry service via Eckermann Assist on 08 8233 3944 or email firstname.lastname@example.org