Conveyancing steps when buying a property
As licensed conveyancers, we understand that the process of purchasing a home can be complex and overwhelming. To help ensure clarity, we have provided a step-by-step explanation of the entire purchasing process.
STEP ONE
HAVE YOUR BUDGET AND PRE-LOAN APPROVAL PREPARED
Have your budget prepared
If buying at auction, have your loan pre-approval in place. There is no cooling off period. i.e be ready because the deposit (usually 10%) needs to be paid and the contract is legally binding.
STEP TWO
Be ready to go = get your team ready. Speak to your conveyancer, your bank & lawyers. We are all here to help you buy your property!
If buying at auction, contact us to review the contract and negotiate the conditions.
TALK WITH YOUR CONVEYANCER
STEP THREE
PREPARE YOUR PEST AND BUILDING REPORT
It’s always in your best interest to have a pest and building report done.
If buying via private treaty, once your offer has been accepted and sales advice issued by the agent, arrange to have your pest and building report done as well as formal loan approval (if borrowing funds to purchase).
STEP FOUR
Once the deposit has been paid and contracts are exchanged, arrange insurance for your property. This may also be a requirement for your lender.
PREPARE YOUR INSURANCE
STEP FIVE
WAIT FOR ADVICE FROM YOUR CONVEYANCER
Typically, as the buyer you have a cooling off period. There are certain circumstances where you may not have a cooling off period, however I will advise you at the time.
STEP SIX
The standard settlement period is 42 days, however this can be negotiated to be reduced or extended.
SETTLEMENT PERIOD
STEP SEVEN
Settlement occurs electronically and we liaise with all relevant parties such as banks and brokers, to ensure this happens smoothly. The transfer of property to you occurs electronically also.
TRANSFER OF PROPERTY
STEP EIGHT
COLLECT YOUR KEYS TO YOUR NEW PROPERTY
Your purchase money is distributed to the vendor and you can collect the keys to your new property.
STAMP DUTY CALCULATOR
When budgeting to purchase property in NSW, it is important to calculate the stamp duty. If you are borrowing money, your broker will discuss this with you.
BUYING A PROPERTY FAQS
Settlement is the final stage of the conveyancing process, where the property ownership is officially transferred to the buyer. This involves the exchange of funds and legal documents between the buyer, seller, and their respective conveyancers.
What is settlement?
What are the risks of not using a conveyancer?
Without a conveyancer, you may not fully understand the legal implications of a property transaction, potentially putting you at risk of legal disputes or financial loss. A conveyancer can provide expert guidance and ensure that all legal requirements are met, giving you peace of mind throughout the process.
A cooling-off period is a timeframe during which a buyer pays a 0.25% deposit to secure the property, whilst they undertake various inspections and/or to obtain formal loan approval. Should they not wish to proceed, they can withdraw from the property purchase, forgoing the 0.25% deposit. The length of this period varies by state and territory, and some exceptions may apply. Your conveyancer can advise you on the cooling-off period in your area.
What is a cooling-off period?
While it is possible to handle conveyancing on your own, it is generally not recommended unless you have extensive legal knowledge and experience in property law. Mistakes in the conveyancing process can have serious legal and financial consequences. It is often more cost-effective and safer to hire a professional conveyancer. As all settlements now occur online, you would need to engage a settlement agent to undertake this part of the conveyancing process for you.
