A conveyancer acting for the purchaser is responsible for undertaking all legal work necessary to transfer the property being sold from the seller to the purchaser.
It’s a good idea for a purchaser to consult a conveyancer before they sell a property.
These are some of the tasks your conveyancer should perform:
- Search the title and conduct other relevant searches, to obtain a property interest report, prepare the transfer document, pay stamp duty on the transfer and adjust rates and taxes.
- Liaise with all the relevant parties – the real estate agent and the bank or financial institution if there is financing involved in the purchase.
- Contact the seller’s conveyancer, prepare a settlement statement and to facilitate settlement in the electronic-conveyancing workspace on the buyer’s behalf.
- Arrange for the buyer(s) to sign the Client Authorisation form. This gives conveyancers authority to act on behalf of the buyer and to sign any relevant documents on their behalf. For example, the conveyancer will prepare and sign the transfer document on behalf of the buyer(s).
It will also be necessary for the conveyancer to verify the identity of their client. Verification of Identity is a requirement designed to protect parties to a conveyancing transaction. It was introduced in 2013 to allow for the introduction of e-conveyancing in South Australia and it assists in the prevention of land fraud. For example, it would prevent someone who was not the owner of the land from seeking to sell the land.
The buyer(s) will be asked to go to their conveyancer’s office and to bring with them a number of documents that prove their identity; preferably documents with photo ID such as passports or a driver’s licence. This process can also be undertaken online or through a third-party identifier such as Australia Post.
What is Verification of Identity?
For more detailed information about the process and the requirements regarding Verification of Identity please see read the AICSA VOI Client Information Sheet.
Why is it necessary for the conveyancer acting for the buyer to adjust rates and taxes?
A buyer is only responsible for paying rates and taxes for the period of time that they are the owner of the property and often the seller has already paid the quarterly bill for the rates and taxes.
The conveyancer acting for the buyer will calculate the days in the quarter the buyer will be the owner of the property and what their share of rates and taxes are.
The seller will be given a credit for those days.
The conveyancer will also prepare the settlement statement, which is a summary of the conveyancing transaction.
It will list all fees, rate adjustments, incoming moneys and deposits paid so that the buyer will know exactly how much is payable on the settlement day.
How will the conveyancer ensure the settlement occurs on the settlement date?
It will be necessary for the conveyancer to liaise with all relevant parties including the real estate agent, the bank or financial institution providing the finance (if required) to fund the purchase as well as the seller’s conveyancer.
The buyer will need to pay the conveyancer’s professional fee, the stamp duty calculated on the purchase price, and the registration fees for the transfer and the mortgage (if there is one).
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