Buying at auction - the conveyancing process

With the property market still running hot, many properties in NSW are going to auction.

Understandably, auctions often make buyers a little nervous but with a little research and forward planning, you can be well equipped.

Here are our top tips for ensuring you are well prepared to buy New South Wales property at auction:

1. Seek legal advice prior to auction

You should get advice from a conveyancer or solicitor prior to attending auction. One of the important aspects of sale of property by auction is that there is no cooling off period.

That means that if you are the successful bidder, the contract becomes binding as soon as you and the vendor sign it.

For this reason, it is important that you have a conveyancer / solicitor review the contract before you bid – so you know exactly what you are buying and under what terms.

2. Have a deposit ready

Make sure you know how you will pay the deposit, as this will be due on the day.

If you need to negotiate the amount of the deposit (i.e. from 10% down to 5%) you should discuss this with both your conveyancer and the vendor’s agent prior to auction day.

3. Have unconditional finance approved

Ensure that you have the money in the bank or an approved loan! If your finance application is denied or delayed, you may be liable for hefty penalties to the vendor.

4. Make sure you have thoroughly inspected the property and arranged for professional inspections

It makes sense to have a good look at what you intend to buy. Beyond that, it is essential that you understand both the value and condition of the property. The following searches are recommended:

pest inspection
building inspection
survey report
building certificate.

Ms Deeds Conveyancing offers a thorough contract review prior to auction which includes professional advice and negotiation of the terms of the contract on your behalf.

This gives you confidence on auction day and ensures you know what you are signing up for!

We can also assist in explaining the entire process to you and ensuring you are ready to exchange if you are the successful bidder – not matter what time or day of the week you may go to auction.

For more information, contact Ashley on 0473 988 648.

Buying property - the conveyancing process

So you have finally found the property of your dreams, made an offer and it has been accepted.

And then the agent asks:

“Who is your conveyancer?” while you stare at them blankly, thinking: “My what?”

When you go to buy a home your conveyancer plays a vital role.

It is their job review the contract for sale and purchase of land and advise you of the terms and conditions.

They are also responsible negotiating on your behalf with the vendor’s conveyancer or solicitor if required.

How will my conveyancer help me buy property?

They will also research the property and its certificate of title – check for easements, type of title and any other information that needs addressing.

Finally, they will handle all the administration and paperwork associated with the transfer of title (or deeds) including placing deposit money in a trust account, calculating the adjustment of rates and taxes, liaising with your financial institution to ensure funds are available at settlement and settling the transaction.

While the process can seem straight forward, having effective professional representation can save your time and money. This is especially the case when things don’t go as expected.

For more information on what to expect when buying a home visit the Law Society of NSW’s website where you can download a free copy of Your Guide to Buying a Home

Ms Deeds can help you with purchasing residential and commercial properties in New South Wales. We offer mobile and digital conveyancing services for all NSW property transactions.

Call us on 0473 988 648 or email ashley@msdeeds.com.au

Conveyancing FAQ - selling

Sun 27 Nov 2016

Selling property - the conveyancing process

The first thing to do before putting your home on the market is to instruct a conveyancer or solicitor to prepare a contract of sale. Under law, a residential property cannot be advertised for sale in NSW until a contract of sale has been prepared.

There are a number of disclosure documents that legally must be attached to the contract of sale, such as a zoning certificate, drainage diagram, copy of the title search to the land, registered plan for the land and copies of any documents creating easements, rights of way, restrictions or covenants.

Failure to attach the correct documents can void the contract.

Your conveyancer will ensure that all of the required disclosure documents are attached to the contract before forwarding a copy to your nominated agent.

You must also include any specific terms or conditions you wish to include in your contract such as an extended settlement period. You may also wish to exclude items such as pendant lights, dishwashers or playground equipment.

Exchanging contracts

Once you accept an offer from a purchaser, your agent sends notice to your conveyancer together with the purchaser’s details and any agreed terms.

Your conveyancer will then seek your approval of the sale details and if approved, issue a contract to the purchaser’s conveyancer / solicitor.

Your conveyancer will contact you to ascertain the method that suits you in terms of signing the contract.

The purchaser’s conveyancer / solicitor will usually seek amendments to the contract after consultation with the purchaser and your conveyancer will contact you for instructions on those amendments.

Once the terms have been agreed, your conveyancer will then exchange contracts.

At exchange, the purchaser pays the deposit and the contract becomes legally binding after the statutory cooling off period (unless waived by the purchaser or sold at auction).

In the case of auction, exchange happens immediately after the winning bid is accepted. Your agent will usually effect contract exchange by delivering your signed contract to the purchaser and collecting the purchaser’s signed copy as well as the deposit.

After exchange, there is usually an agreed period until the sale is settled. This period is negotiable between the vendor and purchaser. A standard settlement period is 6 weeks.

Settlement

Settlement is when the buyer pays you the remainder of what they owe to finalise the purchase. There will also be minor adjustments for council and water rates on a pro-rata basis.

If you have a mortgage over the property you’re selling, your conveyancer will ensure you sign the paperwork necessary for your financial institution to initiate a discharge of your mortgage.

Your conveyancer will then direct the purchaser to draw the relevant cheques to your financial institution and the balance as you direct.

For a more detailed description of the sales process, visit the Law Society of NSW’s website where you can download a free copy of Your Guide to Selling a Home

Ms Deeds can help you with preparing a contract for sale of residential and commercial properties in New South Wales. We are mobile and digital – offering conveyancing services for all property transactions in NSW. Call us on 0473 988 648 or email ashley@msdeeds.com.au

Conveyancing FAQs

Tue 22 Nov 2016

What is conveyancing?

It may seem like a silly question to some but unless you have been directly involved in either the purchase or sale of a property, conveyancing may be something of a mystery.

Buying or selling a home generates paperwork – a lot of it!

Conveyancers (or solicitors) are legal professionals who are responsible for effecting the transfer of title between a buyer and seller.

What does this mean?

They draw up the contracts, review them and fulfil the legal requirements of transferring property.

Why do I need a conveyancer?

Like all aspects of the law, property transfers can be complicated. And mistakes or omissions can be costly.

It is worth ensuring that all of your expectations are covered in the contract, or at least queried.

Conveyancers deal with property transfers every day – it is their specific area of expertise.

And like most professions, with experience comes insight. Conveyancers know what to look out for and how to protect your interest under law.

How do I find a conveyancer?

For practical reasons, many people will work with a local conveyancer.

However, in today’s digital age you can work with any conveyancer that is licensed in the state you are wishing to buy in, irrespective of where you or they may be based.

Be aware that most states have their own regulations relating to property transfers so ideally, you should choose a conveyancer who is located within the same state or territory as the property.

How can Ms. Deeds help with my conveyancing?

Ms Deeds has over 15 years’ experience in residential and commercial property transactions.

We are mobile and digital – offering conveyancing services for all property transactions in NSW.

We are also available for face-to-face meetings for clients between Sydney and Coffs Harbour in NSW.