Conveyancing is the process of handing over property ownership from one party to another. It occurs when the property seller has accepted the offer submitted by the buyer. Then the necessary documents are processed. This process is followed by the signing of papers so the keys can be handed over to the new owner. Conveyancing is not always as easy as it sounds. It is why an entire professional field is about creating the best of this service.
Whether you are buying/selling a property, there is the transfer stage of ownership. This process requires legal paperwork to be in place according to the state’s rules. This process is what conveyancing is all about. Meanwhile, there is a type of conveyancing that one can complete online for faster processing and yields a safe transaction. However, the legal documents for an online conveyancing are the same.
A professional conveyancer should be able to provide the guidance that you need and help you navigate through the hurdles. Below are the essential documents you must prepare to complete the conveyancing process. Whether you buy, sell, or transfer the property to another owner, these documents are required.
Contract of Sale
The contract of sale or CoS is one of the most important documents required during the conveyancing process. All parties will have to fill this document in the transaction and sign it at the right time. The document signing symbolizes the complete transfer of the ownership of the property from the former to the new owner. Some of the contents of the contract of sale document include the following:
- The property of the address to be transferred
- Details of the vendor, the buyer, the real estate agent and the conveyancer handling the deal
- The agreed settlement date for the complete handing over of the property
- A cooling-off period is not compulsory, but if there is, it should be stated in the document
Loan contract
A loan contract or agreement during conveyancing is the document that outlines the loan you are purchasing the property. Usually, it states the terms of the agreement between the buyer and the mortgage bank lending the loan. This contract can serve as a record of the loan you obtained from the lender to secure the property’s ownership. Meanwhile, this loan contract may include any of the following documents
- The amount of the loan obtained
- The expected loan period of repayment
- State whether the loan is a fixed one or has a variable interest rate based on the balance to be paid
- Indication of all the other associated charges with the local
- Show all the features of the loan, including a possible redraw or offset of the facility
Certificate of land title
You must ensure the land title deed is intact when it comes to conveyancing landed properties. This document is essential, showing who the actual property owner is and cannot be overlooked in conveyancing. The property seller must always ensure that the buyer gets the certificate of land title as the new owner. This reviewed document is a way to secure the buyer’s interest in the deal and avoid future issues about ownership.
When the buyer gets the title, he should review it to understand. The certificate may also include some of the restrictions on the property, which is essential for new owners. The title deed as a document contains the following items
- Caveats
- Easements
- Heritage delays
- Existing mortgages on the property
- Restrictions on extensions and renovations
Vendor’s statement or Section 32
The Section 32 document, also known as the vendor’s statement, is another important document that a new buyer should note. It is an integral part of conveyancing documents that the parties should review before completing the property transfer transaction. This document usually contains all the information about the land and its potential issues about selling the land.
Whether the factors affect the buyer’s decision on the property, this information is also essential to include in the document. In addition, section 32 is a required document by real estate agents before they list a property on the market. The reason is that it is used to establish a new owner for a property.
Therefore, you need a professional conveyancer who understands how this process works to tidy up your Section 32. The right conveyancer ensures there are no avoid issues. A typical section 32 document should contain the following information:
- A certificate of title
- All recent lease agreements on the property
- Every recent building work that has been on the property
- All building permits
- Record of connected utilities and the supplies brought to the property
- The house plan
- All the outgoing costs on the property, including the council rates
Settlement statement
After signing the contract of sale, the other document you should ask for is the settlement statement. Without this document, you cannot still have access to the property you are buying. The settlement statement contains all the details of the settlement in one copy, such as
- The purchase price of the property
- The rates estimate
- The deposit amount you made
- All government fees on the property
- The stamp duty
Transfer documents
The transfer documents need to be filled and lodged after completing the transfer of ownership of the property. This document is part of the final conveyancing melbourne documents that must be signed in the presence of qualified witnesses. After signing, the record is filed at the relevant office of the state or region under law.
In addition, the safe copies serve as the official record. At the same time, the parties involved with the transfer of properties also keep copies. The document must contain the date and price of the property. In addition, it is usually lodged by the seller with his professional conveyancer.
Verification of Identity
The last document a seller must take care of during conveyancing is the Verification of Identity (VOI). This document is a requirement for all property buyers and sellers, including anyone who receives the new certificate of title. This document serves as the formal method of verification of the identity of the parties involved in the purchase deal. It also served as a protection against fraud during conveyancing and property transaction. A VOI agent must be present where VOID forms are filled and signed. If you like to learn more, contact us for more information.
More to read: What you need to know about Conveyancing in Australia
