Conveyancing is the legal process of transferring the ownership (title) of property (real estate) from a seller to a buyer.
For most people, buying or selling property is one of the largest financial transactions they will ever make, and the conveyancing process is usually undertaken with the assistance of a conveyancer or lawyer.
Sometimes people choose to do their own conveyancing, instead of hiring a professional. There are a few factors you should consider before you decide to undertake your own conveyancing and it is also vital to understand the conveyancing process, as it may become complex.
What you should consider before choosing DIY conveyancing
Conveyancing is often considered one of the more ‘routine’ legal services offered by a law firm. However, the complexity of a property transaction and the formalities required are often under-estimated. The process moves quickly and once a binding contract is entered, the legal ramifications for breaching the contract, whether you are buying or selling, can be significant.
DIY conveyancing kits may seem tempting as they claim that these kits make the conveyancing process easy because they can save you time and money. They may cost anywhere from $150 to $200 and provide step by step instructions on how to carry out your conveyance. The DIY kits are available for purchase for buyers and sellers.
If you are considering using a DIY kit, you should ensure:
- You can confidently use legal documents and understand legal terminology, including researching the property, ensuring both parties follow the law, and that all money goes where it is supposed to.
- You have enough time to be able to complete the conveyance process on your own, especially if this is the first time you are doing this.
- You weigh up the cost of carrying out your own conveyancing as opposed to paying a professional to do so and whether it’s worth saving that bit extra when compared to the large financial transaction you are about to make.
Why should I hire the services of a conveyancer or lawyer?
If you are not confident with legal terminology, are short on time, or have a complex property transaction, you could end up spending more money and time by attempting to undertake your own conveyancing work.
Settlements, unlike in the past, are now undertaken electronically. You would have to engage an agent who is registered with PEXA or a similar platform in order to complete the conveyancing process. Giles Payne & Co is registered to settle matters electronically and undergoes strict security guidelines in order to maximise safety when dealing with clients, third parties and settlement funds online.
Using a professional to undertake the conveyance ensures the transaction is completed accurately and without delay. A conveyancer or lawyer can ensure that a compliant contract is prepared to begin with, that all title details are correct, and that special conditions tailored to each parties’ particular needs are included. They will also ensure the correct stamp duty and other transfer associated fees are paid, and encumbrances on the title removed prior to settlement so that the property can be properly transferred.
Whether you choose a conveyancer or property lawyer, both professions require significant study and training, and most have conducted numerous conveyancing transactions. Accordingly, you benefit from years of knowledge and expertise, which is vital when it comes to avoiding common pitfalls, carrying out due diligence on a property you are purchasing, ensuring pertinent disclosure issues are covered if you are selling, and advising on ownership interests.
Another advantage of hiring a conveyancer or lawyer is that they will have full indemnity and fidelity cover, whereas if you do your own conveyancing, you will be liable for any mistakes that are detrimental to the other party of the conveyance.
Giles Payne & Co can also provide you important tax advice regarding your purchase, in particular investment purchases, which is advice conveyancers and often many lawyers are not able, or qualified, to do. This advice could save you substantial amounts of money
Conclusion
There is a lot more to conveyancing than filling out a few forms. If you’d rather not deal with government departments, banks, and complex legal documents, it is probably in your best interests to hire the services of a lawyer or conveyancer to process your property sale or purchase. Is it worth risking the successful conveyance of your property just for the sake of saving a few dollars?
If you or someone you know wants more information or needs help or advice, please contact us on 02 9661 6044 or email [email protected].