A conveyancing transaction involves transferring legal title (ownership) of real estate from one party to another. For most people, buying or selling property is one of the highest-valued transactions they will ever make, and the legal work is usually referred to a licensed conveyancer or solicitor.
Fees for conveyancing services across Australia can vary, and to save some money, people might consider doing some of their own conveyancing rather than hiring a professional. While there is technically no legal requirement to hire a conveyancer or solicitor for a property transaction, there are several matters you should consider before taking on your own conveyancing matter.
From the outset, electronic conveyancing is now mandatory for most conveyancing transactions across most states of Australia. E-conveyancing is effectively a closed system where only accredited parties can participate. It is mostly relevant to the settlement stage of a property transaction which takes place through an electronic lodgment network such as PEXA. Accordingly, in most cases, even if you choose to do your own conveyancing, the final stages of the transaction must be outsourced to a registered settlement agent authorised to use the online settlement platform – typically a conveyancer, solicitor or settlement agent.
Considerations Before Choosing DIY Conveyancing
Conveyancing is often considered one of the more ‘routine’ legal services offered by a conveyancing or law firm. However, the complexity of a property transaction and the significance of deadlines is often underestimated. The conveyancing process moves quickly and once a binding contract is entered, the legal ramifications for breaching the contract can be disastrous.
Whether you are buying or selling, before contemplating doing any aspect of the conveyancing work yourself, you might ask the following questions:
- Can you confidently read and interpret legal contracts and understand legal terminology?
- Do you know how to effectively research the title of the property you are about to buy?
- Do you understand your obligations as a seller and the disclosure requirements under the relevant legislation?
- Can you confidently liaise with third parties to ensure that the law and processes are correctly followed and that all money goes where it is supposed to?
- Do you have the time and skill to undertake the process?
The Benefits of using a Conveyancer or Solicitor for your Property Transaction
Most property purchases are made for a long term and conveyancing costs are typically but a fraction of the value of the property. When you compare the money tied up in your investment with what you might pay to retain a professional to protect your legal interests and guard against potential pitfalls, getting a professional seems a logical choice. This goes for buyers and sellers alike.
An experienced conveyancer or property solicitor will ensure that a compliant contract is prepared with relevant disclosure documents and that special conditions are tailored to their client’s needs. They will check title details and explain the contract conditions which are often complex and misunderstood. A property professional will ensure the correct stamp duty is calculated for your purchase and can assist with relevant searches and enquiries to ensure that the property is transferred free of any nasty surprises.
Conveyancer or Solicitor – What’s the Difference?
New South Wales, South Australia, Victoria, Western Australia, Tasmania and the Northern Territory have accredited courses enabling individuals to gain qualifications to become licensed conveyancers and represent parties in conveyancing transactions. In Western Australia conveyancers are referred to as settlement agents.
The conveyancing industry is controlled by legislation in each jurisdiction with state and territory government bodies responsible for overseeing licensing and regulation. As licensed conveyancers specialise in property transactions, they are typically proficient in handling a large portfolio of conveyancing matters. They are not permitted to advise in other areas of law.
Solicitors are legal professionals who have completed a law degree involving several years of study and have been admitted to a court to practice law. In addition to property law, they may advise clients in other legal areas such as wills, estate planning, business and commercial law. Solicitors can also represent clients in court, if necessary.
Conclusion
When it comes to the legal process of buying and selling property, there are numerous reasons why this complex and often undervalued task should be carried out by a qualified professional. By choosing a professional, you benefit from years of knowledge and expertise, which is vital when it comes to avoiding common pitfalls.
Whether you choose a solicitor or conveyancer for your property transaction, both professionals must have completed specific training with relevant experience and should hold professional indemnity insurance providing additional protection for their clients should something go wrong.
As with many things, you get what you pay for and when it comes to investing in real estate, paying for quality legal advice makes good sense.
This is general information only and you should seek professional advice relevant to your circumstances. If you or someone you know wants more information or needs help or advice, please contact us on (08) 8232 8446 or email [email protected].