The Legal Stuff

Which conveyancing or solicitor do I use or do I DIY?

This is an important step in the buying process of buying and selling. It is where a property is transferred from one party to another. This is usually done via one of three ways: a conveyancer, a solicitor or by the purchaser via a do-it-yourself (DIY) conveyancing kit.

Solicitors are usually the more expensive option, but can provide you with a wide range of legal advice in relation to property, wills etc. Expect to pay anything from $400 to upwards of $1,500, depending on the circumstances of your particular property transaction. Note that in Western Australia you can only use a solicitor for the purchase of a property if that solicitor is also licensed as a conveyancer.

Contact the Queensland Law Society for further details about how to contact a qualified solicitor: www.qls.com.au

Conveyancers are licensed to provide the same conveyancing services as solicitors, but can only give legal advice relating to property. If you also need advice on other areas, such as tax or your will, you will need to see an appropriate adviser such as a solicitor and/or accountant. Conveyancers are usually cheaper than solicitors, with their charges ranging from $600 to $1,000 (although their costs will vary depending on the circumstances of your particular property transaction).

For those who like to be ‘hands on’ there are DIY conveyancing kits on the market that are suitable for both buying and selling a home, and for auction and private treaty sales. These kits provide a step-by-step guide to conveyancing, and some offer a telephone support service to assist you. The major advantage of going the DIY path is the money you can save, but there are potential pitfalls into which a solicitor or conveyancer is less likely to fall. The professional’s indemnity and fidelity cover is also a factor that a buyer may wish to consider. DIY conveyancing kits range from about $90 to $150.

Legal Settlement Matters

Once you’ve exchanged contracts you can breathe a sigh of relief and congratulate yourself on your new purchase!
Conveyancing is the next step in the buying process - which is the process where a property is transferred from one party to another. This is usually done via one of three ways:

• a solicitor,
• a conveyancer or
• by the purchaser via a do-it-yourself (DIY) conveyancing kit.

After a buyer has signed the appropriate forms and the Contract of Sale, they are advised to undertake certain searches - these include a Title search verifying the ownership of the property, a local government building report on the legality of existing structures on the property, local government search on the zoning of the property indicating any restrictions on the property and encumbrances on the property easements.

How long does settlement take?

The length of time between exchange of contracts and settlement varies. It normally ranges from four to six weeks. Settlement time is normally dictated by the seller and the banks providing the mortgages, but is negotiated with the buyer.

Final Property Inspection before settlement

Normally a day prior to settlement, the buyer should visit the property for a final property inspection to make sure that it is clean and that all fixtures and fittings that were sold as part of the sale are still there e.g. dishwasher, TV antenna etc. If it’s not in the contract of sale, don’t assume it will be there when you move in! If there are any issues with the state of the house on final inspection, your solicitor or conveyancer may be able to help you resolve your issues.

What if there are problems?

If at any stage you experience problems with the buying process, you may want to contact your solicitor or conveyancer who might be able to answer your questions or guide you in the right direction.

Your lender may require property insurance

Most lenders won’t lend you money unless the building (property) is insured. Depending on the arrangements with your lender, you may not have the loan monies advanced to you until the home or investment is insured. You are not obliged to effect insurance until the date of settlement, however, your lender may require evidence of insurance prior to settlement. Referred to as a Title of Insurance.

In Queensland insurance cover for property puchases are a requirment of the buyer to obtain on the same day of signing the contract. Legally the property becomes the buyer's responsibility from 5:00pm on the first business day after the contract date so it is vitally important that you obtain the appropriate insurance prior to close of business upon signing.

Contact US to obtain FREE* building insurance cover for up to 90 days. (*Please note conditions do apply) 

The Settlement

Finally, settlement day will come, when you or your representative will discuss adjustments to figures and other payments involved in switching property ownership and will hand over a cheque (or series of cheques based on the required disbursements) in return for the title of ownership. Relevant authorities will be notified about the change in ownership by either your solicitor, conveyancer or you (if you DIY).