A conveyancing transaction involves transferring legal title (ownership) of real estate from one party to another. For most people, buying or selling property is one of the highest-valued transactions they will ever make. Usually, a licensed conveyancer or solicitor handles the legal work.
If you’re asking, “Do I need a conveyancer or solicitor to buy a house?”, the answer depends on various factors. Fees for conveyancing services across Australia can vary. To save money, some people consider doing part of their own conveyancing instead of hiring a professional. Although the law does not require you to hire a conveyancer or solicitor, you should consider several important factors before handling conveyancing yourself.
From the outset, electronic conveyancing has become mandatory for most transactions across Australian states. E-conveyancing operates as a closed system where only accredited parties can participate. It mainly applies to the settlement stage of a property transaction, which occurs through an electronic lodgment network such as PEXA.
Therefore, even if you choose to do your own conveyancing, you usually must outsource the final stages to a registered settlement agent authorised to use the online platform—typically a conveyancer, solicitor, or settlement agent.
What Should You Consider Before Choosing DIY Conveyancing?
Many people view conveyancing as a ‘routine’ legal service offered by conveyancing or law firms. However, the complexity of property transactions and the significance of deadlines are often underestimated. The conveyancing process moves quickly. Once a binding contract is entered, breaching the contract can lead to severe legal consequences.
Whether you are buying or selling, before you attempt any part of the conveyancing yourself, consider these questions:
- Can you confidently read and interpret legal contracts and understand legal terminology?
- Do you know how to research the title of the property you are buying?
- Do you understand your obligations as a seller and the disclosure requirements under the relevant legislation?
- Can you liaise effectively with third parties to ensure the law and processes are followed, and all money goes where it should?
- Do you have the time and skill to manage the process?
What Are the Benefits of Using a Conveyancer or Solicitor for Property Transactions?
Most property purchases represent long-term investments. Conveyancing costs typically account for only a fraction of the property’s value. Compared to the money tied up in your investment, paying a professional to protect your legal interests and avoid potential pitfalls is a logical choice. This applies to both buyers and sellers.
An experienced conveyancer or property solicitor will:
- Prepare a compliant contract with relevant disclosure documents.
- Tailor special conditions to their client’s needs.
- Check title details and explain often complex and misunderstood contract conditions.
- Calculate the correct stamp duty for your purchase.
- Assist with relevant searches and enquiries to ensure the property transfers free of any surprises.
What’s the Difference Between a Conveyancer and a Solicitor?
In New South Wales, South Australia, Victoria, Western Australia, Tasmania, and the Northern Territory, individuals can take accredited courses to become licensed conveyancers and represent parties in conveyancing transactions. In Western Australia, conveyancers are called settlement agents.
Legislation regulates the conveyancing industry in each jurisdiction. State and territory government bodies oversee licensing and regulation. Licensed conveyancers specialise in property transactions and typically handle large portfolios of conveyancing matters. However, they cannot advise on other areas of law.
Solicitors complete a law degree and have been admitted to practice law. Besides property law, they advise on wills, estate planning, business, and commercial law. Solicitors can also represent clients in court when needed.
Conclusion
The legal process of buying and selling property is complex and often undervalued. Therefore, it should be carried out by a qualified professional. Choosing a professional provides years of knowledge and expertise, which is vital to avoid common pitfalls.
Whether you select a solicitor or conveyancer, both must complete specific training with relevant experience. They should hold professional indemnity insurance, offering additional client protection if something goes wrong.
As with many things, you get what you pay for. When investing in real estate, paying for quality legal advice makes good sense.
This is general information only. You should seek professional advice relevant to your circumstances. For personalised assistance, please contact our office (02) 9466 5189 or email [email protected].