Common Conveyancing Terms – Explained!
The conveyancing process is necessary to complete any real estate transaction, regardless of whether you’re buying or selling. However, conveyancing can be quite complicated, especially since that many of its legal terms are new to most people.
More often than, though, people work with a conveyancing solicitor to make the process a lot easier, as well as to have someone explain the whole process to them. But, even if conveyancing solicitors are available for hire, it’s still important to understand yourself what the many terms commonly associated with conveyancing.
The following are terms that you’ll probably come across with during the conveyancing process to complete your real estate transaction.
· Adjustments. This is the term used to refer to the particular method used when calculating the property outgoings and how it will be divvied between the seller and the purchaser. This helps make sure that each party is responsible and liable to pay for its own outgoings for a certain time period that usually is when they are considered as the owners of the said property.
· Certification of title. This is the legal document that contains all the particulars of the title of the property involved in the transaction. This often contains information about the owners or proprietors of the property, among others. Should a mortgage be involved in the transaction, the financial institution such as the bank or the mortgagee will ask permission to hold on to the document until the balance has been fully paid. Otherwise, the document will be in the hands of the property’s owner or proprietor.
· Conveyancing solicitor. A professional who has the necessary qualifications, experience and/or education to represent any party during the transaction of transferring a property.
· Conveyancing. This is the term formally used for the process of transferring the property’s title and ownership from one person to another. This process usually involves the buyer, seller, each party’s chosen conveyancing solicitor and the optional financial institution should a mortgage be availed.
· Contract of sale. This is a legal document drawn up that contains the specific terms involved in the transaction of the transferring of the title from the seller to the buyer. A vendor’s real estate agent or conveyancing solicitor will usually be the first to draw up the terms that will then be given to the buyer and their conveyancing solicitor.
· ‘Cooling off’ period. This is a grace period given to buyers usually after they sign the contract wherein they can choose to refuse the contract of sale, albeit at a small cost.
· Deposit. This is the amount of money required of the buyer to secure the purchase of the property. It is very rare for the deposit to be more than 10% of the overall price of the property, though this can be smaller or higher depending on the agreement between the seller and the buyer.
· Disbursements. Conveyancing solicitors often pay for certain fees on their client behalf which will then be reimbursed after the transaction. This usually includes search fees or settlement.
· Settlement: The process usually involves the buyer paying for the full price or the remaining balance after the deposit has been made. This is usually the part of the process wherein the sellers turn over any legal documents relevant to the transfer of property.
· Stamp duty. Almost all states and territories have some form of stamp duty levy. Buyers are often allowed to pay for this duty right after the property has been officially transferred to their name.
· Transfer. This is the legal document that contains any particulars pertaining to the title of the property that’s going to be transferred from the seller to the buyer.
Of course, you may encounter quite a few more terms in conveyancing than the ones listed above. But, at the very least, you have a slight idea of what to expect and this will definitely make things a lot less confusing for you.
Still, even if you know the many terms involved in conveyancing, it’s still important to consult with your conveyancing solicitor if in case you have something you want to clarify.
There are hundreds, if not thousands, of conveyancing solicitors out there, and all would be more than glad to assist you with buying or selling any real estate property.
When selecting, be sure to use a website that allows you to compare conveyancing solicitors and receive conveyancing quotes so you can make the proper choice of a professional that you feel the most comfortable working with.