Conveyancing

Conveyancing is a name most commonly used for the transfer of property – retail, commercial or rural – from a seller to a buyer. Although the transfer of property may sound simple, in practice, transfers are complex and can become a minefield.

Costs of conveyance are normally a set fee for a purchase and a sale of a property.  Contact your conveyancing solicitor to obtain a quote.  In addition to the conveyancing solicitors fees additional costs may apply including:-

1. Lender fees;
2. Inspection fees;
3. Insurance;
4. Relocation costs;
5. Real estate agent commission fees; and
6. Any search fees on the property

When you buy or sell a property, it usually one of the largest financial transactions in your life. This transaction is governed by a number of rules, regulations and legislation. The consequences of making an error can be costly both financially and emotionally. Purcell Taylor Lawyers provides you with confidence that your conveyance is handled smoothly and importantly, stress free. Let us give you peace of mind by efficiently handling the whole process for you.

At Purcell Taylor Lawyers, we pride ourselves on providing you with a top level of personalised service.

You will be appointed a solicitor to conduct the whole transaction for you. This sets us apart from other services where you may deal with many different conveyancers or solicitors who may not be fully aware of your particular needs and may be unable to answer the difficult questions.

We are clear regarding our fees and there are no hidden costs.

Once you have made a decision to buy or sell your property you should immediately engage the services of a conveyancing solicitor.

Often there will be special conditions to your contract and even if these terms are of benefit to you, you should ensure that the wording is correct to achieve the intended result. It is advisable that you contact a lawyer and obtain advice prior to signing a Contract For Sale.

In Queensland conveyancing differs from other states in Australia. In Queensland the buyer and seller of a property are bound contractually (subject to specific terms and conditions) immediately after a Contract of Sale is signed by both parties. To provide the buyer with some legal protection a statutory (cooling off period) and disclosure requirements have been established under the Property and Motor Vehicle Dealers Act (PAMDA). A cooling offer period is the buyers right of property to cancel, withdraw the contract for any reason within five (5) working days from the date the accepted contract is returned signed to the buyer.

The deposit must be paid to the Deposit Holder (Often the real estate agent) on the day the Contract is signed unless another time is specified in the Contract.

• If you don’t pay the deposit by the required date as required in the Contract, the Seller may have a right to terminate the Contract and claim compensation from you even after you pay the deposit.
• Where you propose to make payment of the deposit electronically, you must provide evidence of the transfer to the deposit holder.
• If you terminate the contract under a finance, building and pest and some special conditions, you are entitled to the full refund of any deposit paid.
• If you otherwise default under the terms of the contract. For example, failing to settle by settlement date, the seller is entitled to claim your deposit.

Under the standard terms of the contract, the risk passes to the buyer upon all parties signing. The buyer must then decide whether to obtain insurance over the property. However, we strongly recommend the buyer obtain cover for loss or damage to the building and fixtures and consider whether to obtain contents insurance. It is important to note also that financiers often require buyers to obtain insurance.

Legal Practitioners are required by law, to take reasonable steps to verify your identity. Consequently, you will need to make appropriate arrangements to attend your solicitor’s office or an Australian Post office, so they may verify your identity.

To verify your identity, the legal practitioner or Australia Post will need to witness your original:

• Passport; and
• Drivers licence

Alternatively,

• Drivers Licence;
• Birth Certificate; and
• Medicare Card.

Where you have changed your name, the legal practitioner or Australia ost will require a change of name or marriage certificate in addition.

You must arrange for your own finance. Where you are obtaining funds from your bank, you must arrange to obtain finance approval. Where your contract is subject to a finance condition, you may be able to terminate the contract if you are unsatisfied with the terms of your finance approval or your finance application is rejected.

To ensure that you meet necessary time frames, you should immediately arrange to obtain finance approval whether directly with your financier or through a mortgage broker.

If your Contract is not subject to finance, you will have no right to terminate the Contract for insufficient funds and you may become liable for any loss suffered by the seller should you fail to settle. Therefore, it is critical where you do not have cleared funds that your contract be subject to finance.

It is strongly recommended that buyers have their contract subject to a building and pest condition. Where a contract is subject to a building and pest condition, the buyer must arrange for a qualified building and pest inspector to inspect the property to identify if there are any defects in the structure or pest damage.

Following the findings of the building and pest condition, you may be in a position to negotiate a price reduction or terminate the contract of sale.

Under the standard terms of the contract, you are entitled to enter the property to conduct a pre-settlement inspection. This is often undertaken the day before settlement.

The purpose of the inspection is to confirm, amongst other things, that no damage has been caused, confirm that all included property has not been removed and the property has been reasonably maintained. A breach of any of the above, may entitle you to claim compensation or adjust the settlement price.

Stamp duty is a state tax on the transfer of property in Queensland. Stamp duty is calculated generally on the purchase price of the contract unless the property is being sold at less than market value.

Where you intend to live in the property as your principal place of residence you may be entitled to claim a home concession or if it is your first purchase of property, you may be entitled to claim the first home concession. The concessions will reduce your liability for stamp duty.

Please refer to the transfer duty calculator for an estimate. Link: qld.gov.au/housing

Settlement is the finalisation of the sale or purchase of the property. We attend to settlement on your behalf including booking a settlement time and location. You are not required to attend settlement, and we will advise you when settlement is effected.

We will advise your bank what cheques or payment directions need to be made.

For buyers this includes payments to:

• The seller for the balance of purchase price;
• Office of State Revenue for stamp duty; and
• Titles office for the registration fees.

For Sellers, payments are made to:

• Your bank to payout the mortgage;
• The real estate agent for their commission; and
• Your local council if there are any rates owing.

On settlement the seller will:-

• Discharge any mortgage they have with their financiers and deliver all documents to the buyers representative including a mortgage release document;
• The buyers financier will advance the funds to enable the purchase to be completed;
• Payments are then made to the entitled parties.

The real estate agents are authorised by both parties to release the deposit monies and deliver the keys to the new purchaser upon settlement being completed.

When you are obtaining funds from a financier, your bank will attend to registration of the transfer with the title’s office. After the Transfer has been lodged for registration, the local council, public utilities, the valuer general and the office of state revenue are automatically notified of the purchase.

Other providers such as the phone and electricity suppliers will need to be notified by the buyer.

E-Conveyancing allows for the “electronic” settlement of a conveyancing transaction through an online platform called Property Exchange Australia (PEXA). PEXA operates across Australia and in each state.

E-Conveyancing allows for the signing of the transfer documentation and lodgement at Titles Queensland to occur electronically without the need for parties to execute a hard copy. This is particularly useful where you are situated outside of Townsville, are interstate or overseas as documents will not be posted.

Further, E-conveyancing allows for funds to be disbursed through Electronic Funds Transfer (EFT) rather than through bank or trust cheques which would be physically exchanged at settlement. Consequently, cleared funds are credited to the recipients account within a very short time rather than having to wait for cheques to clear.

Please refer to PEXA website for further information: PEXA