PROPERTY & CONVEYANCING

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Conveyancing is the legal process of transferring ownership of property from one person to another. It involves preparing, verifying, and lodging documents to ensure the property transfer is legally valid and complies with NSW laws.

You will be making one of the largest purchases, investments or sales in your life which includes lengthy and confusing contracts, discharging mortgages, transferring property titles and registering mortgages. 

We will ensure you will get the right advice from an experienced lawyer so the transaction runs smoothly and you can simply focus on packing and moving into your new home. 

The conveyancing process typically includes:

• Reviewing the contract of sale.
• Conducting property searches and checks.
• Ensuring legal compliance, including transfer of title.
• Calculating settlement adjustments (e.g., council rates).
• Coordinating settlement with the other party and their representatives.

A conveyancer only deals with the sale and purchase of property. A lawyer deals not only with the sale and purchase of a property but other areas of law, including litigation and wills and estates. If a sale or purchase transaction goes bad, then a lawyer will be able to attend Court and appear on your behalf. 

The purchase or sale of a property may include the need to update your Will which our lawyers at MD Law Group can assist you with. 

When buying a property, the process involves:

1. Reviewing the contract of sale.
2. Conducting inspections (e.g., building and pest).
3. Exchanging contracts with the seller.
4. Paying the deposit.
5. Finalising finances and completing settlement.

When selling a property, the process includes:

1. Preparing a contract of sale, including required disclosures.
2. Negotiating terms with the buyer.
3. Exchanging signed contracts.
4. Ensuring settlement is completed and funds are transferred.

• Exchange: The point when both parties sign and exchange contracts, making the transaction legally binding.
• Settlement: The final stage, where the buyer pays the balance, and ownership is officially transferred to them.

Stamp duty is a tax paid by the buyer on the purchase of property. The amount varies based on the property's value and whether the buyer qualifies for exemptions or concessions (e.g., first-home buyers). The duty must typically be paid before or on settlement.

Searches depend on the property but may include:

• Title search (to confirm ownership and any encumbrances).
• Council and water rate searches.
• Zoning and planning restrictions.
• Strata reports (for units or apartments).

These searches ensure the property is free of issues that could affect ownership or use.

A cooling off period is the immediate period after your sale or purchase of property and usually runs for 5 business days after you exchange contracts, starting the next business day after you exchange. You do not count public or bank holidays. 

If you purchase a property at auction, under the terms of the auction, you would have waived your right to a cooling off period. 

In some circumstances, in the negotiation of your sale or purchase, you may provide an authority (known as a s.66W certificate) which waives your right to a cooling off period. This is completed through your lawyer as it is your lawyers obligation to advise you of your right to a cooling off period and the effect of waiving same.

If you are purchasing a property "off the plan", you are entitled to a 10 day cooling off period starting on the next business day after exchange.

The cooling off period in all circumstances is subject to negotiation except if the property is purchased at auction. 

Most purchasers use their cooling off period to ensure they have unconditional financing for their purchase and have obtained pest and building reports, strata reports, and written advice on the contract. 

Ordinarily settlement occurs 42 days after you exchange contracts but it can be shortened or extended by way of agreement between the parties. 

You would ordinarily lose your 0.25% deposit.

If you withdraw from the contract after the cooling off period has expired, you would ordinarily lose the full deposit (10% or less) and you might also be sued for damages which includes any losses suffered by the vendor for your breach of contract. 

If you are getting close to the cooling off period expiry and you are still not in a position to proceed with the purchase, your lawyer may request an extension on the cooling off period. This is not guaranteed to be agreed by the vendor so you should do everything you can to be ready before cooling off expires.