The legal work involved in preparing a sales contract, mortgage or other property related documents, is called conveyancing. While you can do your own conveyancing, most people engage a licensed conveyancer or solicitor to simplify the process.
What is the meaning of conveyancing?
“the branch of law concerned with the preparation of documents for the conveyance of property”
Here are some details a seller and purchaser need to consider when carrying out a conveyancing transaction:
SALE OF PROPERTY – Critical details that a vendor must consider when selling their property:
PURCHASE OF PROPERTY – Critical details that a purchaser must consider when looking to purchase a property:
Here are some key terms associated with a conveyancing transaction:
Certificate of Title – a certificate issued pursuant to the NSW Land Registry Services, which certifies that the person named therein as the registered proprietor has title to the land described in the certificate.
Contract date – this is the date on which both parties have signed the Contract.
Contract for the sale and purchase of land - a Contract for the sale and purchase of land is a legal contract for the purchase of land and improvements by a buyer from a seller for an agreed upon value in monetary terms.
Discharge of Mortgage – this is the document which is prepared by a mortgagee on title and is signed by the mortgagee once they receive payment for the debt owing by the vendor.
Improvements – characterised as being permanent on the property, e.g. a house or garage.
Mortgagee – the lender in a mortgage, typically a bank, building society or savings and loan association.
Mortgagor – the borrower in a mortgage, typically a homeowner.
Property – the land, the improvements, all fixtures and the inclusions, but not the exclusions.
Price – total amount which the property has been sold for.
Settlement date – this is the date where all representatives of the parties, including any financiers, have to enter final settlement amounts into Pexa and sign off for the settlement to proceed. This is the day when vendors need to release the property to their purchaser.
Special Conditions of the Contract for Sale – these are included in the Contract for Sale and prepared by the vendor’s solicitor. They are in addition to the printed conditions provided by the Law Society of New South Wales. Each condition gives rise to a contractual obligation, breach of which can give rise to litigation.
Termination of the Contract for Sale – a Contract for Sale can be terminated when an actual breach occurs if an obligation under an essential term of the Contract for Sale is not met. An essential term is usually specified in the Contract for Sale. If breached, the non-breaching party will be able to claim damages, as well as to terminate the Contract for Sale. The decision of Bieri v Ottoman Enterprises Pty Ltd as trustee for Yucel Family Trust [2015] NSWSC 563 from the New South Wales Supreme Court (Equity Division) outlined the relevant principles relating to the valid termination of a contract for the sale of land by a vendor, and the right to claim.
If you have further questions about conveyancing and how we can help you with the purchase or sale of property, please contact us at frank@franklaw.com.au.
This is not legal advice.
Photo by Micheile Henderson on Unsplash