Conveyancing is the transfer and registration of title in property from one party to another whether that transfer is triggered by the sale or purchase of real estate, a family law property settlement, or disposals / acquisitions between family members, trusts or corporate subsidiaries.
Buying residential property essentially involves three stages – pre-purchase investigations, exchange of contracts and settlement. The aim during the conveyancing process is to ensure the new owner obtains clear title, is aware of any interests registered over the land (easements or rights of carriageway), is satisfied with its permitted use and the state and condition of any dwellings. This is achieved by conducting various searches and investigations before and after exchange of contracts.
Stamp duty and GST issues should also be considered.
Selling residential property requires owners to have available a marketing contract containing disclosure documents before offering the property to market. As a minimum, this includes a title search noting the interests recorded on the property, a plan of the land, a zoning certificate from local council and drainage diagram.
Owners must warrant that there are no adverse affectations concerning the property, that the zoning is accurately stated in the planning certificate, and the sewer is as indicated on the drainage plan. It is also implied that there are no outstanding work / demolition orders and that all relevant approvals for the construction and use of the buildings have been obtained.
Strata title property comprises land in a strata scheme divided into lots and common property. The legal title to the lot, defined by the cubic airspace and interior surfaces of the walls, ceilings and floor (usually the inside of a unit or apartment and its balcony) is held outright by the owner who also holds an interest with other lot owners in common property such as stairways, lifts, gardens and swimming pools.
After purchasing a strata unit, the owner automatically becomes a member of the owners’ corporation, the “Body Corporate” which is responsible for managing the strata scheme which involves arranging adequate insurance, repairs and maintenance, keeping records, and appointing managing agents or building managers.
Buying off the Plan
Buying off the plan entails purchasing a property that has not yet been built or land, the plan for which has not yet registered. An off the plan purchase may not settle for two to three years after negotiations.
Contracts are usually lengthy and contain many conditions and variables such as a series of completion dates providing a buffer to allow vendors additional time to finish the project and complete the contract. The contract also allows for variances in design, size and finishes subject to permissible limits.
Once the development is completed and the plan registered, purchasers usually have around two weeks to complete.
Buying at Auction
An auction occurs when interested purchasers register to bid publicly for a property. The person or entity with the highest bid, subject to a reserve price, becomes the purchaser on the day of the auction and contracts are immediately exchanged and the 10% deposit is payable. The transaction then proceeds through the usual conveyancing steps.
Auctions are regulated by legislation and the agent conducting the auction must maintain specific records and conduct the auction in accordance with the regulations.