Conveyancing may not be the first thing you think about when buying a home, but it’s something you’ll eventually have to consider
The costs of conveyancing might not be one of the first things you would think about when you’re ready to buy your property. Ensuring that you’re prepared for all the costs that come with purchasing your dream home, including conveyancing, means you can expect a much smoother purchasing process.
You may be wondering what conveyancing actually is? Put simply, conveyancing is the process of formally transferring your newly purchased property to your name. This process takes some legal expertise, which means it also costs money. It is, however, an essential part of the buying process, so understanding the costs associated with it can save you from the unexpected bill down the line.
The good news, however, is that by hiring a conveyancer, you’re able to have your new property transferred into your name, as well as have them review the contract of sale before you sign it - a must-do.
Conveyancing is a complicated process that involves a number of financial and administrative responsibilities that should be tasked to a professional. In general, there are three stages of the conveyancing process.
Ideally, you’ll engage a conveyancer upfront, when you express interest to purchase a property, so they are able to guide you through the initial phase of the purchase process.
This is where all the big ticket items are generally ticked off around the purchase process. This includes making arrangements to pay the stamp duty, review mortgage agreements and final inspections, amongst other things. Of course, this is the time when all the nitty gritty aspects of purchasing a property are settled, including making the payments of the purchase price and other applicable costs. It’s during this time that you’ll be thankful for employing the services of the conveyancer.
You’re almost there, and all that needs to be done now is a few final steps. Your conveyancer will walk you through the process of transferring documents with the Land Titles Office which formally changes property ownership. If you’re purchasing and opting into a mortgage, your bank will handle a lot of the technical aspects of this stage, however, your conveyancer will also guide you through the process of lodging any post-settlement documents.
As is the case with the majority of legal proceedings, conveyancing fees and costs can vary greatly, and can become expensive if you’re not careful. Shopping around and looking for a conveyancer that suits your needs is always the best plan of attack.
Depending on what your needs are, generally, the conveyancing process will cost anywhere between $1,000-$2,000. Of course, there are going to be instances where fees and costs will fall outside that bracket, but having a general idea of conveyancing costs can help you plan and budget before taking the property plunge.
You can, of course, hire a solicitor to undertake the contract review and conveyancing process. There is a difference between level of expertise and price when it comes to choosing a solicitor or a conveyancer to undertake the process.
A solicitor is going to be able to provide a wider range of legal advice when it comes to house contracts. This being the case, you could expect to pay more for a solicitor to undertake the conveyancing process than you would if you chose a traditional conveyancing firm. It’s important to note that the property ownership structures can impact the complexity of the conveyancing process, so it’s always important to do your research around what is going to be the best option for you and your circumstances.
Understanding the process and costs associated with conveyancing can save you a headache throughout the property purchase period. Just remember to do the appropriate research and find the conveyancing firm or solicitor that suits your individual needs. Book an appointment with an Aussie broker today to chat through your options.