Conveyancing
9. Transfer Process
Authors: Staff Legal Eagle
Firm / Chambers:
Last updated: 12 Jul 2015
- The conveyancing process encompasses multiple stages that must be completed within a strict timeframe. A high level overview of the stages is provided below.
- Stage 1 – the vendor prepares the contract of sale.
- Stage 2 – the vendor advertises the property and invites offers or lists the property for auction.
- Stage 3 – the purchaser obtains a copy of the contract of sale and seeks legal advice. The purchaser should carry out all pre-purchase enquiries. Any requests for amendment of the contract usually occur at this stage.
- Stage 4 – interested purchasers make an offer which is often accompanied by a holding deposit. Gazumping can occur in this stage. Gazumping refers to the situation where you as an interested purchaser make an oral agreement with the agent to purchase the property for a specific price but the property is not sold to you. Usually this is because another person has offered a higher amount. Any requests for amendment to the contract can still be made at this stage.
- Stage 5 – if the vendor accepts the offer contracts are exchanged. Payment of a deposit is required at this stage. Once the contracts are exchanged no further changes to the contract can be made.
- Stage 6 – the purchaser’s lawyer or conveyancer orders searches and makes all necessary enquires to ensure clear title. Title enquires are different to the enquiries made at the pre-purchase stage which mostly relate to the quality of the building and land itself. If any breaches of the vendor disclosure or warranties legislation are disclosed then the purchaser may have the right to rescind (revoke or cancel) the contract.
- Stage 7 – the purchaser’s lawyer drafts requisitions on title and sends it to the vendor’s lawyer for reply. Requisitions on title are a prescribed list of questions related to the title of the property. These questions help to ensure the purchaser will receive clear title at completion of contract. The purchaser's lawyer also rafts the transfer document and Notice of Sale (NOS). In New South Wales an eNOS is used. An eNOS is an electronic notice of sale required under the law for all property transactions.
- Stage 8 –the vendor’s lawyer discusses the replies to the requisitions with the vendor. The vendor's lawyer also checks the draft transfer and obtains the vendor's signature for the transfer document.
- Stage 9 – the purchaser’s lawyer discusses the replies to the requisitions with the purchaser.
- Stage 10 – if the purchaser’s lawyer is satisfied with the title then preparation for settlement usually commences. The purchaser’s lawyer drafts settlement figures based on their enquirers and sends their draft to the vendor’s lawyer. The purchaser arranges for a pre-settlement inspection. The lawyer then books a settlement date and time and informs the vendor’s lawyer.
- Stage 11 – the vendor’s lawyer checks the settlement figures and ensures all adjustments are accurate. The vendor’s lawyer also sends draft cheque directions to the purchaser’s lawyer.
- Stage 12 – the purchaser or purchaser’s lawyer arranges for settlement cheques with the purchaser’s financier.
- Stage 13.1 – on the date of settlement the purchaser's lawyer:
- obtains a final search;
- prepares an order on the agent to account for the deposit; and
- attends settlement.
- Stage 13.2 – on the date of settlement the vendor's lawyer attends settlement and sends an order to the agent for release of keys to the purchaser.
- Stage 14 – after settlement the registrations and discharges must be finalised. If the property was fully self-funded by the purchase then the purchaser’s lawyer registers the certificate of title with Land and Property Information (LPI). If there is an incoming mortgagee the certificate of title along with other documents goes to the mortgagee and remains with it until the discharge of the mortgage.
- Stage 15 – the lawyers for the vendor and purchaser report back to their respective clients.
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