Conveyancing explained – Part 2
Conveyancing explained – Part 2
In Part 2 of our Conveyancing explained articles we define some of the specifics of buying and selling property, such as electronic conveyancing, stamp duty and contract terms.
What is electronic conveyancing?
Electronic conveyancing (eConveyancing) minimises the manual processes and paperwork associated with property exchange by enabling financial institutions, lawyers and conveyancers and others to transact together in a secure online space.
We offer our clients electronically processed conveyancing through PEXA (Property Exchange Australia) for a quick and easy transaction.
What is stamp duty and do I need to pay it?
Stamp duty (or transfer duty) is a tax imposed on the purchaser of the property by the State Government. Under the standard contract of sale, and in most cases, stamp duty is payable by the buyer prior to settlement. This allows for a transfer document to be stamped and lodged for registration immediately after settlement.
The amount of the stamp duty is determined by the purchase price of the property, along with any concession you may be entitled to.
What are the terms and special conditions in a contract?
Most property contracts have standard terms included, designed to cover the more important aspects of a standard transaction. As each transaction is unique and our clients may have different needs, many contracts may also have special conditions added.
Special conditions are included by agreement and can override the standard terms. Our team will discuss any change to your contract so you are comfortable before signing.
What are ‘searches’ in a conveyancing transaction?
Searches are performed to help a buyer assess their purchase and identify legal, ownership or property issues. They also help to confirm that the property is not subject to any current or known future plans issued by government, or affected by inclusion on the registers such as heritage listing.
Searches also determine whether there are any encumbrances over the title of the property that need to be addressed prior to settlement. These may include mortgages, easements, covenants or caveats. If any of these are recorded against the title of a property you plan to buy or sell, our team will advise you of your rights and obligations.
What are settlement price adjustments?
The settlement process almost always spans an accounting period, during which authorities and organisations charge fees to the owners of the property. These may include local government rates, state government levies or taxes (for example, land tax), and body corporate or strata fees for units.
Part of the conveyancing process involves making relevant adjustments in the purchase price to account for each party's share of these fees.
What happens if there is a legal problem with my contract?
Our experienced Conveyancing Team provides advice and guidance when legal problems arise. They are with you every step of the way to ensure that you are kept informed, and to assist in facilitating a smooth transaction.
The team at Steele+Co are always available to provide you with more detail and comprehensive advice specific to your circumstances. Contact us today to talk through how we might assist in making your sale or purchase a stress free reality.