The right legal “watchdog” can ensure your single greatest asset is protected from day one. Photo: Yuri Acurs People Images.
In the purchase and sale of what’s likely your single greatest asset, a good conveyancer is the ultimate guide, safety net, and legal watchdog rolled into one.
Despite this, many sellers don’t realise their conveyancer should be one of the very first calls they make.
It’s a common misconception that a real estate agent must be the first point of contact. In fact, a conveyancer must prepare your contract before the property even hits the market.
“If you’re still deciding on an agent but want to move quickly, it’s best to get a conveyancer first to start your contract, so there are no delays,” Velocity Conveyancing director Andrew Satsias says.
“This is particularly important for any sale involving a body corporate, because the necessary searches can take up to 14 days due to backlog.”
A conveyancer can also offer invaluable guidance from the outset.
“Unlike some other jurisdictions, ACT conveyancers must be lawyers, giving them a deep understanding of how real estate intersects with broader legal issues,” Andrew says.
For buyers, when you engage a conveyancer can make a world of difference.
Auctions require particular caution, as there is no cooling-off period. Pre-auction contracts often require a similar waiver.
“Unlike a negotiated purchase, you don’t have time to get legal advice and finances in order,” Andrew says. “Everything must be reviewed before you bid at auction.”
In a negotiated sale, the contract is usually reviewed after your offer is accepted. Multiple offers and negotiations are common, but until a contract is signed and deposit is paid, there’s no obligation to proceed.
Your conveyancer will usually only recommend that you move forward with a purchase once finance is confirmed and you and your conveyancer are satisfied with the terms.
A good conveyancer can also provide insight before contracts are signed.
“We understand the market and the risks, what’s happening with certain developments and the reputations of developers,” Andrew says.
Velocity Conveyancing director Andrew Satsias says in purchase or sale, a conveyancer should be your very first call. Photo: Thomas Lucraft.
Before you commit to the purchase, your conveyancer negotiates terms if needed and ensures finances are in order before the contract is exchanged. Pre-approval from your bank is often not enough. The property must still be appraised to get unconditional approval.
Waiving of the cooling-off period is normally expected when you have had time to obtain advice and get your finances approved.
After exchange with waiving of the cooling-off period, parties cannot withdraw without significant financial or legal consequences and the standard 28-day ACT settlement period begins.
Foreign Resident Capital Gains Withholding Tax can also affect buyers, requiring confirmation that the seller is an Australian resident before settlement. Without it, 12 per cent of the purchase price may need to be withheld for the ATO.
Before settlement, searches are conducted to ensure there are no hidden debts, outstanding rates or water charges attached to the land.
“We want our buyer to receive a clear and valid title, not incur any of the seller’s liabilities,” Andrew says.
For sellers, the process begins with the contract for sale, which is required before the property goes on the market.
An Energy Efficiency Rating report is required for all sales. In addition, if it’s a house or townhouse, building pest inspection and compliance reports are required. These are generally arranged by the real estate agent but must be attached to the contract prepared by the conveyancer.
Once a buyer is secured, the conveyancer may need to amend special conditions and negotiate on behalf of the seller and will coordinate deposits for exchange. Before settlement, mortgage discharges and title transfers are managed carefully to ensure a smooth process.
For both buyers and sellers, settlement is typically handled digitally through Property Exchange Australia (PEXA).
While the conveyancing process should run like a well-oiled machine, not all operators offer the same level of oversight.
“For one, transactions involving large sums are increasingly targeted by scams,” Andrew says.
“A client this week came to us after engaging someone she believed to be an interstate lawyer. As her matter progressed and she was asked to transfer substantial funds, she became anxious, realising there was no way to verify who she was dealing with.”
Andrew says dealing with established local firms can provide reassurance.
“We have six offices in Canberra – our clients can step into any one of them and see exactly who’s acting for them.”
Velocity Conveyancing prepares contracts with no upfront payment – fees are paid at settlement, or if the property does not sell within 180 days, only the contract preparation fee applies.
“And while anyone can review a contract, we’ve been here over half a century. We know the suburbs inside out, and the nuances of the jurisdiction that will secure your sale or purchase.”
For more information, visit Velocity Conveyancing.
Original Article published by Dione David on Region Canberra.
Region Media Partner Content
