The role of Conveyancing ~ "What you should know"~ Part One

Garth Brown, B. Bus, Fellow of AICNSW, JP

Conveyancing ~ "What you should know"

If you have bought and sold real estate, unless you handled the conveyance yourself, you would have employed a Conveyancer or Solicitor to prepare the documentation, conduct the searches and arrange the settlement process. 
Most Clients are satisfied with the manner in which the conveyance is handled, but unfortunately PI claims for conveyancing are increasing all the time and from the horror conveyancing stories we hear this is usually in the low cheaper end of the conveyancing market that is why it is essential to hire a professional experienced Conveyancer, preferably an AIC member (Australian Institute of Conveyancer), to minimize the risk of something going wrong.
To assist you understand Conveyancing we have prepared a 3 part series starting this month with Part 1 “What you should know”, March Part 2  “Choosing the Wrong Conveyancer” and April Part 3 “Choosing the Right Conveyancer.”  

What is Conveyancing?

In Legal terms, Conveyancing is the transfer of Title from the Vendor(s) to Purchaser(s). The name on the Title indicates Ownership of the Property. Interestingly from this month the actual Paper Title will be phased out over the next 6 months as Electronic settlements has been introduce all over the Country from October.
A Conveyancer is a Licensed and qualified Property Law professional who gives and legal advice during the Sale and Purchase when issues arise, prepare documentation and undertake the Settlement.
An interesting trend is for Law Firms to employ specialists Property Conveyancers to undertake Conveyancing and 30%+ of all Conveyancing work undertaken in NSW is conducted by Certified Practicing Conveyancer’s (CPC’s). While in SA 97% of all Conveyancing is undertaken by a CPC.
As the home buyers and sellers become more aware of the Specialist services offered by CPC’s – because of the expertise and specialisation in the area the first choice  increasingly is to engage a CPC in NSW rather than a Solicitor.

When would you engage a Conveyancer?

1.  Buying and Selling property
2.  Leasing
3.  Subdivision of Land
4.  Off the Plan Apartment/ House purchase
5.  Updating a Title due to divorce or a Will
6.  Registering, changing or removing an easement
7.  Company Title
8.  Tenants in common apartments
9.  Land tax & Stamp Duty advice

What does a Conveyancer undertake for the Purchaser?

1.  Review the Contract and suggest contracts amendments to benefit the Purchaser.
2.  Reviews Strata Reports for Special levies and proposed expenses.
3.  Reviews Pest & Building reports with the Inspectors.
4.  Arranges Land Boundary Identification surveys.
5.  Any Easements or covenants affecting the Title, Drainage lines preventing extensions.
6.  Any government proposals to acquire the land considered by the Purchaser e.g. Rail, road or education proposals.
7.  Deposit lodged in the Trust.
8.  Calculate Settlement figures after adjustments for Council, Water and Strata levies etc.
9.  Liaise with the incoming Bank and their Mortgage requirements.
10. Establish the Identity of the Purchasers and ensure the Vendor identity is correct.


What does a Conveyancer undertake for the Seller?

1.  Ensure a valid Contract is drawn and ready to use when marketing the property commences.
2.  Answer any Contract requested changes.
3.  Arrange the Title and discharge of Mortgage.

Brown and Brown Comments

When it comes to choosing a Conveyancer it is essential to understand what is involved and the consequences of a conveyance going wrong.  There are always good and bad Solicitors and good and bad Conveyancers that’s why making an informed decision based on knowledge will assist you to make the right choice.


We will consider “Choosing the Wrong Conveyancer – is this possible?” in our next eNews, March 2015, and the potential pitfalls that need to be considered before choosing a Conveyancer.

Garth Brown, B. Bus, Fellow of AICNSW, JP

Brown and Brown Conveyancing
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