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. For this reason, people usually refer the legal work to a licensed conveyancer or solicitor.
Fees for conveyancing services across Australia can vary. To save money, some people consider completing their own conveyancing instead of hiring a professional. While there is technically no legal requirement to hire a conveyancer or solicitor for a property transaction, several important matters must be considered before taking this approach.
From the outset, electronic conveyancing is now mandatory for most property transactions across most states in Australia. E-conveyancing operates as a closed system. Only accredited parties can participate.
It is mainly used at the settlement stage of a property transaction. This stage occurs through an electronic lodgment network such as PEXA. Therefore, even where a person completes their own conveyancing, they must still use a registered settlement agent for final settlement. This is usually a conveyancer, solicitor, or settlement agent authorised to use the platform.
Considerations Before Choosing DIY Conveyancing
Conveyancing is often viewed as a routine legal service. However, this perception is misleading. The process involves strict deadlines and complex legal obligations. As a result, many people underestimate the risks involved.
Once a binding contract is signed, the legal consequences of non-compliance can be serious. For this reason, careful consideration is required before attempting any part of the process without professional assistance.
Before deciding to complete your own conveyancing, consider the following questions:
- Can you confidently read and interpret legal contracts and understand legal terminology?
- Do you know how to research and review the property title correctly?
- Do you understand your obligations as a seller, including disclosure requirements under relevant legislation?
- Can you liaise with third parties to ensure legal requirements are met and funds are correctly transferred?
- Do you have the time and skill required to manage the process properly?
The Benefits of Using a Conveyancer or Solicitor
Most property purchases are long-term investments. In comparison, conveyancing costs are usually small relative to the value of the property.
When you weigh the value of your investment against the cost of professional legal support, engaging a qualified professional is often the most sensible choice. This applies to both buyers and sellers.
An experienced conveyancer or property solicitor prepares a compliant contract and includes the required disclosure documents. They also tailor special conditions to suit their client’s needs.
In addition, they review title details and explain contract terms, which are often complex and easily misunderstood. They also calculate stamp duty correctly and assist with searches and enquiries.
As a result, they help ensure the property transfers without unexpected legal or financial issues.
Conveyancer or Solicitor – What’s the Difference?
New South Wales, South Australia, Victoria, Western Australia, Tasmania and the Northern Territory offer accredited courses for licensed conveyancers. These professionals are qualified to act in conveyancing transactions. In Western Australia, conveyancers are known as settlement agents.
Each state and territory regulates the conveyancing industry. Government bodies oversee licensing and compliance. Licensed conveyancers specialise in property transactions and often manage a high volume of matters. However, they cannot provide advice outside property law.
Solicitors complete a law degree and are admitted to practice law in court. They can advise on property law as well as other legal areas such as wills, estates, and commercial law.
Importantly, solicitors can also represent clients in court if disputes arise.
Conclusion
Buying or selling property involves significant legal complexity. For this reason, many people choose to use a qualified professional rather than managing the process themselves.
Both solicitors and conveyancers must complete specialist training and hold professional indemnity insurance. This provides additional protection if something goes wrong.
In most cases, the quality of legal advice directly affects the outcome of a property transaction. While DIY conveyancing may appear cost-effective, professional support often helps avoid costly mistakes.
This information is general only and you should seek professional advice relevant to your circumstances. If you or someone you know wants more information or needs help or advice, please contact us on 07 5576 9999 or email [email protected].
