The buying or selling of property is a legal act. It’s therefore best to retain the services of a conveyancing lawyer if you need to engage in such a transaction. Conveyancing in Melbourne takes many different forms. You might be a private homeowner who’s looking to buy or sell a house, or the owner of a business who wishes to sell or buy real estate. No matter the specifics of your conveyancing needs, you must ensure that the exchange of contracts and transfer of titles is legally sound and binding. Read on to learn more about conveyancing in Melbourne with these helpful answers to frequently asked questions
What Happens On Settlement?
Settlement is legally defined as the point at which the ownership of the property is transferred to the buyer. This typically happens after the buyer has transferred the purchase amount to the seller’s account. The keys are then given to the buyer.
What Does an Exchange of Contracts Mean?
The solicitors of the two parties involved in the sale handle the exchange of contracts. Each confirms that their client has signed the contract. They also work out and agree on a settlement date. These arrangements tend to be made over the phone or through an email exchange.
When Does an Exchange of Contracts Take Place?
The simple answer is as soon as possible. The contract isn’t legally binding until it’s signed by both parties. Until that happens, the buyer or seller can seek to renegotiate the purchase price and other terms that have already been discussed and agreed to. Until the contract is signed, either party may pull out of the deal without penalty.
You should not allow too much time to pass once you’ve settled on a price and agreed to a settlement date. The other party might be tempted to find a better deal, which can throw your plans into disarray. You should instruct your lawyer to carry out an exchange of contracts within a few days of reaching a deal.
How Long Does It All Take?
A standard conveyancing transaction can normally be completed within 6 to 8 weeks. However, unforeseen complications or delays may arise which can slow things down when it comes to conveyancing in Melbourne.
What Are the Common Causes of Delay?
Your conveyancing lawyer has your best interests at heart and will want to get the deal done as fast as possible. However, some things can happen that they can’t control, such as:
* A delay in one part of the chain, which will delay everyone else
* Mortgage application taking longer than usual to process, which can happen if the mortgage lender is unusually busy
* Mortgage offered with complicated or unforeseen conditions
* An enquiry reveals something unexpected
What Enquiries and Searches Need to Take Place?
If you’re purchasing a property, you should learn everything about it. Your conveyancing lawyer should carry out an enquiry into the nature and location of the property. You should also know about any restrictive covenants, flying freeholds or other liabilities, such as if the property is at risk of being flooded. Your conveyancer should additionally know if the property has been exposed to past contamination or some other environmental hazard. This should all be sorted out before you get to the exchange of contract stage.