What is Conveyancing?
14 Mar 2023 Legal Services
When purchasing any type of property, you will need to navigate and complete the conveyancing process. Conveyancing is best defined as the legal process for transferring the ownership of a property from one party to another. This process typically involves a licensed conveyancer that acts on behalf of the buyer to ensure that their client receives the title deeds to the property they have purchased. The conveyancing process is required by law, so it is crucial to ensure that it is completed properly. That is why the real estate lawyers at Linley Welwood have compiled some information to help you understand what conveyancing is, what the process looks like, and why it is best to hire a lawyer to assist you with it.
The Conveyancing Process in 6 Steps
Understanding what the conveyancing process looks like is crucial for ensuring that no steps are missed. In most cases, the conveyancing process will proceed in the following order:
1. Choose a Lawyer or Law Firm
The conveyancing process can be long and complicated without assistance from a real estate lawyer. It is strongly recommended to choose a lawyer to act as your conveyancer to ensure that all documents are properly filled out and filed.
2. Receive Documents and Begin the Due Diligence Process
Once you have a signed Contract, all subject clauses within the Contract have been waived, the Deposit has been paid in trust, and the Contract is fully binding on both the buyer and the seller, your conveyancer will begin the due diligence process. During this process, they will review the property title, mortgages, outstanding taxes, and other financial charges that may affect the final transaction such as liens.
3. Preparing the Transaction Documents
Once the due diligence process has been completed, your conveyancer will collaborate with your bank, insurance company, realtor, and the conveyancer for the other party to prepare the transaction documents. These documents include Form A transfers, statements of adjustment, mortgage documents, GST certificates, land ownership transparency returns and property transfer tax returns.
4. Sign the Property Transaction Documents
With the property transaction documents gathered and prepared, you will need to meet with your conveyancer to sign them shortly before your closing date. Once this signing is complete, the balance of the purchase downpayment will be collected from the buyer and processed.
5. Review all Documents and Perform a Title Search
Before the transaction is finalized and completed, every document will be reviewed one last time to ensure that everything is in order. Once this review is completed, a pre-registration title search will be performed and documents will be filed at the Land Title Office. After filing, a post-registration title search will also be performed to ensure that nothing has changed in the meantime.
6. Finalize Payment and Obtain a State of Title Certificate
After all documents have been successfully reviewed and filed, the seller will receive payment for their former property and their conveyancer will forward a Form C Discharge to the seller’s lender (if applicable) in order to remove their old mortgage from the title. After the Form C has been signed by the seller’s lender and registered, the conveyancer can order a State of Title Certificate showing the buyer as the new owner of the property. Once this document has been obtained the conveyancing process is complete.
To learn more about conveyancing or for assistance with other elements of your transaction, get in touch with the experts at Linley Welwood. We can be reached through our online contact form and are ready to answer any questions you may have.