Most of us have at least a vague sense we need conveyancing help when buying or selling real estate but here are 3 unexpected things your conveyancer can assist you with that you might not have realised.
These are the items we will focus on in this article:
- Changing your name on a title
- Setting up a private mortgage for your children
- Buying real estate for your SMSF
Before we expand on them a little, let’s look at why the dynamics of conveyancing are needed for each of them.
What does conveyancing really mean?
In short, conveyancing involves transferring legal title between parties and there are two main stages to each transaction.
The first stage typically involves the exchange of contracts between two parties, then the second stage sees the transfer “settled”, at which point legal title passes.
If you think about the three items above, each of them involves documents being either created or completed, and then being enacted upon.
They also need attention to detail, which is exactly what good conveyancers bring to the table.
3 unexpected things your conveyancer can do for you: Changing your name
Whether you are joining or leaving a marriage and need to change your name, or have other reasons, the process can seem simple on the surface.
While name changes appear to be quite straightforward at first glance, there are quite a few hoops to jump through and institutions that need notifying.
From a conveyancer’s perspective I’ve witnessed how even tiny errors in a name change process can lead to nightmarish delays in access to funds or property when those transactions are also on the table.
So, please involve your conveyancer as you embark on this change, especially if you are changing your name during a time at which your emotional resilience is at its lowest so that missteps can be averted.
3 unexpected things your conveyancer can do for you: Private mortgages
With younger generations finding it harder to build up deposits for real estate, there is a growing trend in which parents lend money to their children through. One option to secure this lending is via a private mortgage being registered on the title.
There are pros and cons to this approach but as you would expect from a conveyancer, I believe many of the possible disadvantages can be avoided with the right documentation.
Of the many advantages of private mortgages, keeping wealth within the family and shielding children from the more stringent demands of third party lenders are two that dominate in conversations on the topic.
But there can be risks with private mortgages, namely relationship changes (mum is now your banker) and/or damage to the core asset, can lead to fractured experiences for all involved.
Where a conveyancer can help in this process is by working to capture everybody’s expectations, setting up repayment schedules that everybody understands, and forging an agreement on how money is to be repaid if and when something goes wrong. Our sister company Eckermann Lawyers assists with this documentation to ensure all legal requirements are followed and there are no surprises down the track.
3 unexpected things your conveyancer can do for you: Finance and your SMSF
If you run your own Self Managed Super Fund, you are likely to be very engaged in managing your assets.
Since 2010, there has been a gradual increase in transactions involving SMSFs borrowing to buy property (typically via a Bare/Custodian Trust setup) and thus increasing the risk for complications and delays.
From a conveyancer’s perspective, where a SMSF is purchasing it is CRUCIAL to make sure the details of the purchasing entity are correct on the contract as it can cause issues for the lenders.
I believe the best way to make sure this is correct, is for the purchaser to obtain advice from their accountant or their conveyancer/solicitor before signing the contract.
I hope you’ve found this article helpful and that I’ve been able to shed some light on useful ways your conveyancer can help settle important life transactions for you, smoothly and accurately.
And if you don’t have a conveyancer yet, please contact Eckermann Conveyancers so we can be by your side when you need us.