Conveyancing involves legal transfer of home ownership from the seller to the buyer. The conveyancing process starts when the seller’s offer on the house is acceped and finishes when the buyer receives the keys. A solicitor usually conducts a conveyancing process. It can be done by the seller itself unless and until the seller is not taking any mortgage.
Initially, most people would prefer to find the right solicitor and instruct them to oversee the coveyancing process and try to avoid their estate agent’s recommended conveyancer as it is likely to be commissioned-based which will end up costing up more. Moreover, online conveyancing services are said to be cheaper than the local branch.
On the Buyers Guide to Property Conveyancing, some things one should know are:
Is it possible to purchase property on behalf of a third party? Yes, a property may be purchased AS AGENT on behalf of a third party provided an executed Agency Agreement authorizing that person to enter into the Contract for Sale on behalf of the third party has been signed beforehand.
What is Lenders Mortgage Insurance (LMI)? Lenders Mortgage Insurance is a policy that protects the Lender in the event of the Borrower (Buyer) defaulting on their Mortgage obligations which results in the Lender suffering a financial loss from the sale of the property which is secured. A Lender will usually insist on the Borrower obtaining Mortgage Insurance when the lending is in excess of 80% of the valuation of the property being offered as security.
Are there additional costs above the purchase price? Yes, the most significant being Transfer (Stamp) Duty payable on the Contract. There is also buyer’s share of the rates and taxes, Registration Fees on the Transfer, search fees, settlement fees and disbursements.
And now the Sellers Guide to Property Conveyancing one must know are:
Are there additional costs to be deducted from the sale price? Yes, the Real Estate Agents Commission, adjustments of rates and taxes, discharge fees, search fees and disbursements along with the settlement fee. What you need to do if the property is being sold subject to a Lease Agreement? One must have the lease agreement noted as a Special Condition on the Offer and Acceptance Contract. Ensure that you provide Invest Conveyancing with the details of the Property Manager. With these tips and suggestions thus, a basic understanding can be taken of Conveyancing for the upcoming buyers and sellers in the market.