Step-by-Step Guide to the Conveyancing Process in Canberra
​Whether you are buying or selling a property in Canberra, the conveyancing process can be complex. Conveyancing is the legal process of transferring property from one person to another. Understanding each step will help you navigate the process smoothly and ensure you meet all legal obligations. Here’s what you need to know as either a buyer or seller:
Step 1: Pre-Contract
Getting Ready
As a buyer, this means securing finance pre-approval and researching properties. If you're selling, prepare your property by completing necessary repairs and making it presentable to attract buyers.
Choosing a Conveyancer
Consider who you will appoint to assist you with your property transaction. Your conveyancer will handle the legal aspects of the transaction and advise you about the steps involved. Their expertise in Canberra’s property market will be invaluable.
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Step 2: The Contract of Sale
Drafting and Reviewing
If you’re selling, your conveyancer will prepare the contract and include all required searches and reports. Buyers should have their conveyancer review the Contract to fully understand all terms and identify any issues.
Negotiations
This stage may involve back-and-forth negotiations to finalise the terms of the contract. It’s crucial to communicate clearly and ensure all terms are agreeable before proceeding.
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Step 3: Exchange of Contracts
Signing and Exchanging
Both parties sign their copies of the contract and exchange them. The buyer generally pays a deposit at this point, usually 5% or 10% of the sale price.
Cooling-Off Period
A five-business day cooling-off period is available on residential properties, during which the buyer can decide to withdraw from the purchase. Sellers will often require this period to be waived to ensure an unconditional sale.
Step 4: Pre-Settlement
Legal and Financial
Checks Sellers need to arrange the discharge of any mortgage over the property and determine how sale funds are to be distributed. Your conveyancer will assist with obtaining your tax clearance certificates. A buyer’s conveyancer will conduct searches to determine any outstanding debts on the property. Buyers also need to ensure that their mortgage arrangements and any additional funding for settlement, including legal fees and stamp duty (if any) are in order.
​Step 5: Settlement
Final Preparations
Sellers must vacate their property prior to settlement, unless sold with an existing tenant.
Your conveyancer will finalise the adjustment of rates and levies on settlement. Just before settlement, final checks ensure all financial aspects are in order. The buyer’s conveyancer verifies that all conditions of the contract have been satisfied.
Completing the Process
Most settlements now occur electronically with the involvement of each party’s conveyancer and the respective banks. During the settlement process, the transfer of title is finalised and funds are paid to the seller. Once completed, the seller hands the keys to the buyer.
Step 6: Post-Settlement
Registration
The change of ownership is officially recorded with the Land Titles Office. The conveyancer ensures the buyer is listed as the new property owner.
Buyers can now move into their new home or commence their property investment journey. For investment properties, sellers should provide the relevant sale information to their accountant.
Understanding the conveyancing process in Canberra helps ensure that whether you’re buying or selling, you are well-prepared for each stage. Engaging a knowledgeable conveyancer will facilitate a smoother process, allowing you to look forward to the next chapter in your property journey.