A conveyancing transaction involves transferring the legal title (ownership) of real estate from one party to another. For most people, buying or selling property is one of the highest-valued transactions they will ever make, and the legal work is usually referred to a licensed conveyancer or lawyer.
Fees for conveyancing services across Australia can vary, and to save some money, people might consider doing some of their own conveyancing rather than hiring a professional. While there is technically no legal requirement to hire a conveyancer or lawyer for a property transaction, there are several matters you should consider before taking on your own conveyancing matter.
From the outset, electronic conveyancing is now mandatory for most conveyancing transactions in New South Wales. E-conveyancing is effectively a closed system where only accredited parties can participate. It is mostly relevant to the settlement stage of a property transaction which must now take place on an online platform known as PEXA. Accordingly, even if you choose to do your own conveyancing, the final stages of completing the matter would need to be outsourced to a registered settlement agent authorised to use the online settlement platform. This is often a conveyancer or lawyer.
Considerations Before Choosing DIY Conveyancing
Conveyancing is often considered one of the more ‘routine’ legal services offered by a conveyancing or law firm. However, the complexity of a property transaction and the significance of deadlines is often underestimated. The conveyancing process moves quickly and once a binding contract is entered, the legal ramifications for breaching the contract can be disastrous.
Whether you are buying or selling, before contemplating doing any aspect of the conveyancing work yourself, you might ask the following questions:
- Can you confidently read and interpret legal contracts and understand legal terminology?
- Do you know how to effectively research the title of the property you are about to buy?
- Do you understand your obligations as a seller and the disclosure requirements under the relevant legislation?
- Can you confidently liaise with third parties to ensure that the law and processes are correctly followed, and that all money goes where it is supposed to?
- Do you have the time and skill to undertake the process?
The Benefits of using a Lawyer or Conveyancer for your Property Transaction
Most property purchases are made for the long term and conveyancing costs are typically but a fraction of the value of the property. When you compare the money tied up in your investment with what you might pay to retain a professional to protect your legal interests and guard against potential pitfalls, getting a professional seems a logical choice. This goes for buyers and sellers alike.
An experienced property lawyer or conveyancer will ensure that a compliant contract is prepared with relevant disclosure documents and that special conditions are tailored to their client’s needs. They will check title details and explain the contract conditions which are often complex and misunderstood. A property professional will ensure the correct stamp duty is calculated for your purchase and can assist with relevant searches and enquiries to ensure that the property is transferred free of any nasty surprises.
Should I Choose a Conveyancer or a Lawyer?
Conveyancers in New South Wales must complete an accredited course and are licensed professionals regulated by NSW Fair Trading. They specialise in property transactions and are often proficient in handling a large portfolio of conveyancing matters. They are not, however, qualified nor licensed to advise in other areas of law, which may be incidental to a property transaction.
Lawyers are legal professionals who have completed a law degree involving several years of study and have been admitted to a court to practice law. In addition to property law, many are knowledgeable across other legal areas such as wills, estate planning, business and commercial law which means they may be able to assist with matters that are incidental to their client’s property transaction. Additionally, lawyers can provide representation in court if necessary.
Whether you choose a lawyer or conveyancer for your property transaction, both professionals must have completed specific training and hold professional indemnity insurance providing additional protection for their clients should something go wrong.
Conclusion
When it comes to the legal process of buying and selling property, there are numerous reasons why this complex and often undervalued task should be carried out by a qualified professional. By choosing a professional, you benefit from years of knowledge and expertise, which is vital when it comes to avoiding common pitfalls.
As with many things, you get what you pay for and when it comes to investing in real estate, paying for quality legal advice makes good sense.
This is general information only and you should obtain professional advice relevant to your circumstances. If you or someone you know wants more information or needs help or advice, please contact us on (02) 4987 3344 or email [email protected].