Whatever type of property you are looking to buy or sell, whether it’s residential or commercial, you need to complete the conveyancing process in order to complete the legal transfer of ownership from one person or entity to another.
The conveyancing process involves fulfilling the necessary legal and administrative procedures, and includes the negotiation and signing of the contract, due diligence searches, finance and inspection periods and the final settlement. Whilst you can legally do your own conveyancing in Queensland, it is highly discouraged for most people.
The complex laws and high risks involved in making mistakes or missing clauses can cause huge financial losses and even cause future title problems. The potential costs you may save from not paying for a professional conveyancer are far outweighed by the security and peace of mind you get, knowing that a conveyancer has done everything correctly, and your new property is legally yours.
The First Steps
Finding your perfect property, negotiating the price and having your offer accepted is just the beginning. Once you have signed the contract, the conveyancing process timeline begins, and this process continues right up until settlement day, when you get the keys to your new property.
This time period is busy for both the buyer and the seller, as both will have important deadlines and legal obligations to fill. On average, the conveyancing timeline in Queensland typically ranges from 30 to 60 days, but this can be negotiated depending on the specific terms of your contract.
Factors That May Affect the Timeline
Before both parties sign the contract, the buyer and the seller need to agree on the terms, and this includes the actual date of settlement, which can obviously affect the timeline. The efficiency and speed of the solicitors, banks, agents and both parties will also have a bearing on how quickly things get done. Searches and inspections can take anything from days to weeks to complete, and any adverse search results or lender issues can also cause delays.
The Conditional Phase
This period is considered the busiest and most critical part of the conveyancing process. It is the time when the buyer ensures the property is acceptable and they secure the necessary funds to complete the transaction.
During this time, the conveyancers conduct searches to identify any issues, such as checking for unpaid council rates or zoning restrictions, and professionals are instructed to check the property to ensure there are no structural issues or pest infestations. The property may need to be valued so the buyer can secure formal approval from their lenders for the loan, and if any issues arise with the property, now is the time to negotiate financial agreements with the seller.
The Unconditional Phase
Once all the contract conditions have been met, the contract becomes unconditional. This literally means the point of no return, and both parties are now legally bound to proceed to settlement. Significant financial penalties, including loss of the deposit, can occur if either party fails to complete.
Any final searches and requisitions are made, and the transfer documents are finalised and signed. A pre-settlement inspection is carried out by the buyer (usually 1-2 days before settlement) to ensure the property is in the same condition as when the contract was signed, and the lender prepares the funds.
PEXA
Most property transactions are processed digitally through PEXA (Property Exchange Australia), so when the transaction is finalised, the funds are transferred, and the title is transferred to the buyer through an electronic platform. Once completed, you can collect the keys, now the property is yours!
