The conveyancing process involves transferring property ownership from one party to another. Settlement can be as soon as one or two weeks from Contract signing or any other period as agreed between the parties.
Whether you’re a buyer or seller, understanding each step is crucial for a successful transaction.
In Victoria, the legal process of conveyancing involves several key stages, including preparation of the Section 32 Vendors Statement, contract review, due diligence, and settlement. You’ll need to work closely with a conveyancer to ensure all legal requirements are met and potential issues are addressed promptly.
This guide will walk you through each phase, helping you avoid common pitfalls and understand your responsibilities throughout the process.
A Licensed Conveyancer is a property transfer expert and is solely focussed on ensuring a successful and smooth property settlement experience.
Pre-Contract Stage
The pre-contract stage is crucial for a smooth property transaction. You’ll need to choose a conveyancer, conduct thorough property searches, and ensure your finances are in order before proceeding. It’s also essential to review the contract carefully, ensuring there are no unexpected clauses or hidden fees that could catch you off guard.
Why Choose a Licensed Conveyancer?
Licensed Conveyancers are solely focussed on property transfers and have deep knowledge of the property transfer process. Rather than being focussed on a broad range of practice areas, Licensed Conveyancers typically only practice in the property transfer space and are experts in this field.
Licensed Conveyancers usually offer a more cost-effective service and a streamlined process. Consider requesting quotes from several professionals to compare fees and services.
Remember, the cheapest option isn’t always the best. Look for a balance between cost and quality of service.
Property Search and Inspection
Thoroughly researching the property and its surroundings is essential.
Start by exploring the neighbourhood, checking local amenities, school zones, public transport, road access and comparing property values in the area.
A key pillar of your search should be researching recent ‘Sold’ price data. This information is usually readily available through the major property sale platforms
Once you have found a property that you are interested in, it is now time to engage property professionals to assist you to navigate forward. Relevant property professionals include a Licensed Conveyancer, Mortgage Broker/Banker and Building & Pest Inspector
As mentioned in our article about first time homebuyer mistakes, a common one is failing to fully understand certain terms or skipping over detailed inspections, which can lead to costly repairs down the road. Taking the necessary time in this stage can help avoid unnecessary complications later on.
Financial Preparation
Preparing your finances is a critical step in the pre-contract stage. You’ll need to account for various costs beyond the purchase price.
Calculate your budget, including:
- Stamp duty (use the State Revenue Office Victoria calculator)
- Conveyancing fees (typically $1,000 to $1,500)
- Inspection costs
- Mortgage registration fee (approximately $116.80)
- Transfer fee (dependant on the property value)
If you require a mortgage, arrange pre-approval with your mortgage broker/banker. This will give you a clear idea of your borrowing capacity and strengthen your position when making an offer.
Set aside funds for a deposit, usually 10% of the purchase price. You may need to pay this upon signing the contract, so ensure it’s readily available.
Contract Stage
The contract stage is a crucial part of the conveyancing process in Victoria. You’ll encounter several important documents and steps during this phase that require careful consideration and action.
Vendor’s Statement (Section 32)
The Vendor’s Statement, commonly called a Section 32, is a critical document you’ll receive as a buyer.
It contains essential information about the property, including:
- Title details and zoning information
- Outgoings such as rates and taxes
- Building permits issued in the past seven years
- Connected services
- Bushfire-prone area declaration (if applicable)
You should review this document thoroughly with your conveyancer. It helps you make an informed decision about the property and alerts you to any potential issues or restrictions.
Contract of Sale
The Contract of Sale is the binding agreement between you and the seller.
Key elements include:
- Names and addresses of both parties
- Detailed property description
- Purchase price and deposit amount (typically 10%)
- Settlement date (usually 30-90 days after signing)
- Any Special Conditions
It’s highly recommended to have your Licensed Conveyancer review the contract before you sign. They can explain complex terms and negotiate changes if necessary.
Making an Offer and Paying a Deposit
When you’re ready to proceed, submit a formal written offer through the real estate agent or directly to the seller. If accepted, you’ll need to pay the deposit, which is usually held in the agent’s trust account.
Be aware of the cooling-off period, which is three business days in Victoria (except for auctions and corporate purchasers). During this time, you can withdraw from the sale but may face financial penalties.
Your conveyancer can guide you through the offer process and explain your rights and obligations regarding the deposit and cooling-off period.
Pre-Settlement Stage
The pre-settlement stage involves crucial steps to ensure a smooth property transfer.
You’ll need to conduct thorough checks, secure insurance, and finalize your financing arrangements before settlement day arrives.
Conducting Searches and Checks
Your conveyancer should initiate a series of searches and checks to uncover any potential issues with the property.
A title search is essential to verify ownership and identify any encumbrances. Request planning certificates to confirm zoning regulations and permitted land use. Land tax certificates will reveal any outstanding tax obligations.
Water and sewerage information searches are crucial to understand the property’s connection status and any related charges. Check for heritage listings that might affect future renovations or development plans.
These searches typically cost between $200 and $500 in total. While it may seem like an additional expense, the information gathered is invaluable for your peace of mind and financial protection.
Arranging Insurance
You must arrange building insurance from the date you sign the contract. This protects your investment in case of damage or destruction before settlement. Don’t wait until settlement day, as you’re responsible for the property from the moment you sign.
Consider contents insurance if you plan to move in immediately after settlement. This covers your personal belongings and furnishings.
Finalizing Finance
Confirm your mortgage approval with your lender. They may require additional documentation, so be prepared to provide updated payslips, bank statements, or other financial records.
Your conveyancer will also arrange for the transfer of funds well before settlement day. This includes your deposit, stamp duty, and any other fees. Your conveyancer will advise you on the exact amount needed.
Ensure you’ve budgeted for additional costs such as mortgage insurance, valuation fees, and transfer fees. Your lender will provide a detailed breakdown of these charges.
Settlement Stage
The settlement stage marks the final steps in the conveyancing process, culminating in the transfer of property ownership. This phase involves crucial preparations and the formal exchange of documents and funds.
Preparing for Settlement
Your conveyancer will coordinate with the other party’s representative to establish a settlement date and time. They’ll prepare detailed settlement statements, outlining all financial aspects of the transaction.
These statements will include:
- Purchase price
- Deposit paid
- Outstanding balance
- Adjustments for council rates and water charges
Your conveyancer will organise the transfer of funds, ensuring all necessary amounts are available on the settlement day.
It’s important that you arrange a final inspection of the property, typically within a week of the settlement date. This inspection allows you to verify that the property is in the agreed condition.
Transfer of Ownership
On the settlement day, the formal transfer of ownership occurs. This process may take place at an agreed physical location or, more commonly, through the electronic platform PEXA (Property Exchange Australia).
Your conveyancer will:
- Ensure all required documents are signed
- Oversee the transfer of funds
- Confirm the lodgement of transfer documents with the Land Titles Office
Once settlement is confirmed, you’ll receive the keys to your new property. Your conveyancer will notify you of the successful completion, and you’ll officially become the new owner.
Remember, settlement day can be stressful, so it’s advisable to keep in close contact with your conveyancer throughout the process.
Post-Settlement Stage
The post-settlement stage involves crucial steps to finalise the property transfer and ensure all legal obligations are met. You’ll need to complete document lodgements and finalise various payments to wrap up the conveyancing process.
Lodging Documents
After settlement, your conveyancer will lodge the transfer of land with Land Use Victoria. This step officially records the change in property ownership.
Your conveyancer will handle the preparation and submission of all necessary legal documents, including the transfer of land form and any mortgage discharge paperwork.
You’ll receive a post-settlement letter from your conveyancer outlining the lodged documents.
They will also notify relevant authorities about the change in ownership, such as:
- Local council
- Water authority
- Owners Corporation (if applicable)
It’s important to keep copies of all documentation for your records.
Enjoy!
All the hard work has been done, its now time to relax and enjoy your new property!
Looking for expert guidance through your property transaction?
Contact Complete Conveyancing on (03) 9646 5913 or email us at info@completeconveyancing.com.au today to ensure a seamless and stress-free conveyancing experience.