Legal Conveyancing 101
Conveyancing is the legal process of transferring ownership of title or interest of title over of a property or asset to another party or entity. This transfer process is riddled with legal jargon and can make the process of selling or purchasing a home very overwhelming.
We have listed, in plain English, a breakdown of what legal terms mean during the conveyancing process. Hopefully, this guide will help ease one aspect of stress commonly found during the sale process!
What is the difference between a solicitor and a conveyancer?
A solicitor has the same capacity and knowledge as a conveyancer to help with the straightforward process of selling or purchasing property. However, a solicitor can also assist with any complex legal issues that may arise.
Common legal jargon that will arise during your conveyancing process unpacked:
Making an Offer – When a prospective purchaser submits an offer to the vendor they must sign a Contract of Sale to purchase the property if the vendor accepts the proposed price. An offer from a prospective purchaser can include special provisions.
Signing the Initial Contract – This is when all parties meet to sign the contract and agree to its specified terms.
Contract of Sale – The contract of sale is a legally binding contract between the vendor and purchaser outlining the exchange of property and includes the terms of the agreement, contract price, settlement date, property specifications and special conditions.
Cooling Off Period – Unless there are specified exceptions, the contract has a 5 day cooling off period to allow buyers to change their mind – 0.25% penalty of the purchase price applies if terminated under this condition.
Finance Date – The date by which the purchaser must inform the vendor that finance has been obtained to purchase the property.
Certification of Title – Is the legal document that certifies to the Titles Registry Office who is the owner of the property. The certificate of Title will include the owner’s details, mortgages, relevant covenants or caveats registered and any third party interest in the land.
Encumbrance – Encumbrance is a claim on the property by a third party. Examples include easements, covenants, caveats and mortgages. A common encumbrance is the Vendor’s mortgage. It is your conveyancer or solicitor’s responsibility to ensure that the vendor’s mortgage has been discharged prior to settlement
We hope this quick read has helped you unpack some of the legal vocabulary used during the conveyancing process!
📲 Feel free to contact Hatzis Lawyers for further information or to begin your conveyancing process.