|
Conveyancing is the process of formally
transferring the ownership or control of
property from a seller to a buyer. It includes
mortgages, charges, leases and the passing of
various other interests in property.
This process, like any sale, requires the
creation of an agreement. In this case, a
'contract for the sale of land', the
preparation for which forms the basis of the
conveyancing process.
The preparation for completion of the
contract involves both basic administrative
tasks such as the sourcing of documents, and
also important acts of 'due diligence' in
ensuring that the property investment being
considered is indeed a good investment. Such
acts of 'due diligence' includes building, and
pest inspections that are geared towards
ensuring that the property being purchased is
not a poor investment.
Across most Australian States the following
people can handle conveyances:
- A solicitor;
- A licensed conveyancer; or
- An individual.
In some States (Queensland, Tasmania and
ACT) a practising lawyer may only act for a
client in a conveyancing matter, but in all
other States professionals such as licensed
Conveyancers may also carry out conveyancing
work. Conveyancers are usually regulated
by a State Government body who have strict
rules for their registration and training.
Costs
The fees that are paid to a lawyer or
licensed conveyancer for the completion of this
process are called 'disbursements'. A
licensed conveyancer or lawyer will also charge
a general service fee for the services.
In some States this is capped at a maximum
amount, though the amount will vary
greatly.
Professional indemnity insurance
Both lawyers and licensed conveyancers are
required to hold professional indemnity
insurance. Basically, this insurance
allows a person aggrieved by the negligent work
of such a professional to collect remuneration
or compensation. This fact is an
important peace of mind for a buyer or seller
if something should go wrong.
While It is also possible to conduct a
conveyance yourself, before doing so it is
important to understand the benefits of using a
property law specialist covered by indemnity
insurance. For more information read the
FAQ, 'Do I Really Need a Lawyer?'
|
