The A to Z of Conveyancing in Australia: Your Guide to Property Transactions

Buying or selling property in Australia is a significant undertaking, and navigating the legal intricacies can feel daunting. That's where conveyancing comes in. It's the essential process that ensures a smooth and legally sound transfer of property ownership. Let's break down the A to Z of conveyancing in Australia, providing a comprehensive overview of what you need to know.
A - Auction: A common method of selling property in Australia, especially competitive markets like Sydney. Be aware that there are no cooling off periods when a property is purchased at auction.
B - Building and Pest Inspections: It's crucial for purchasers to conduct these inspections to identify any potential structural or pest-related issues before committing to the purchase.
C - Contracts for Sale of Land: This is the cornerstone of the transaction. It outlines the terms and conditions agreed upon by the vendor and purchaser, including the purchase price, settlement date, and any special conditions. This should be reviewed by a solicitor to ensure you understand your rights.
D - Deposit: The purchaser typically pays a deposit upon signing the contract, which is held in trust until settlement.
E - Encumbrances: These are restrictions or claims on the property, such as mortgages, easements, or caveats. Your solicitor should review the Contract and/or conduct searches to identify any encumbrances and advise you of same.
F - Finance: Securing finance is a critical step for purchasers. This should be obtained prior to signing the Contract or at the minimum before a cooling off period (if applicable) expires. Your solicitor should liaise with your broker/bank after exchange to ensure a smooth process.
G - Government Searches:
These searches are conducted to reveal information about the property, such as zoning regulations, land tax, outstanding rates and any potential acquisitions.
H - Hidden costs: Buying a property involves more than just the purchase price. Some hidden costs could include stamp duty (transfer duty) and how it's calculated in different states, legal and conveyancing fees, building and pest inspection costs, mortgage application fees, insurance costs (building, contents) or council rates and water rates adjustments.
I - Insurance:
The risk of the property passes on to the purchaser after settlement. Purchasers should arrange building insurance from the date of settlement. Vendors need to maintain insurance until settlement.
J - Joint Tenants vs Tenants in Common: Understanding the different types of property ownership is essential. Joint tenants have equal rights, hold the property together (generally married and/or defacto couples) and when one passes away, the property becomes the other joint tenant regardless of a will or any other right. While tenants in common can have varying shares in the property, and the portion of the property can be passed through a will or can become part of an Estate when the vendor passes away.
K - Key Dates:
The contract for sale of land outlines crucial dates such as the date of signing the contract, the cooling-off period (and its exceptions), the due diligence period (if applicable), the settlement date and what happens on this day (electronically via PEXA) and any other specific dates outlined in special conditions of the contract.
L - Land Titles Office: This is where property ownership is registered and recorded. Noted there are varying names for each state.
M - Mortgage:
If you still owe money on the property you are selling, your solicitor will need to get in contact with your bank to discharge the mortgage on settlement. If you're borrowing money to buy property, you'll need a mortgage. Your solicitor will handle the mortgage documents.
N - Negotiation:
You should negotiate your Contract for Sale of Land before signing or exchange or at least before the cooling off period expires. This provides a purchaser with the best bargaining power. After exchange the bargaining power reduces.
O - Owners Corporation: For properties within a strata scheme (like apartments or townhouses), the Owners Corporation (also known as the Body Corporate in some states) is crucial.
P - PEXA: Stands for Property Exchange Australia, is an online property settlement platform which provides an efficient digital environment for lawyers, conveyancers, and financial institutions to collaborate and complete property transactions online.
Q - Queries:
Don't hesitate to ask your solicitor any questions you have throughout the process.
R - Real Estate Agent:
Whether this is your sales agent or buyers agent, you need to ensure that you choose the right person to sell your property or find a property for you. They fight for you, make the transaction smoother and get the best deal for you.
S - Settlement: This is the final stage of the transaction, where ownership is transferred, and funds are exchanged.
T - Title Search:
This search verifies the legal ownership of the property and identifies any encumbrances.
U - Unconditional offer: An offer that is not subject to any conditions.
V - Verification of Identity (VOI): This is a legal requirement to confirm the identity of the parties involved in the transaction.
W - Walk through (final) inspection:
Whether you are building a home or buying an existing house you should always do a final inspection before settlement to ensure you are receiving what you are purchasing. Depending on the issues, settlement can be delayed or monies held in trust post settlement to deal with any problems.
X - eXchange of Contracts: The moment that the signed contracts are exchanged and the deal becomes legally binding.
Y - Yield (Strata):
In strata properties, understanding the yield (returns) is crucial for investors.
Z - Zoning:
This refers to the regulations that govern how the land can be used. Your solicitor will check the zoning to ensure it aligns with your plans.
Why Use a Solicitor?
Conveyancing is a complex process that requires legal expertise. A solicitor can:
Ensure all legal requirements are met.- Conduct thorough searches and investigations.
- Prepare and review contracts.
- Liaise with lenders and other parties.
- Protect your interests throughout the transaction.
- Deal with any issues that arise during the process and provide you legal advice in relation to same.
By understanding the A to Z of conveyancing, you can approach your property transaction with confidence and ensure a smooth and successful outcome.





