The transfer of property ownership occurs through a process called conveyancing. The law recognises the existence of a bundle of rights associated with a piece of property in which a party may own either a legal or an equitable interest. This is called a ‘title’. Different parties may hold title to a property in different proportions. A vendor (seller) and a purchaser usually hire a licensed conveyancer or a solicitor to legally transfer title of a property from a vendor to a purchaser. A conveyancer or a solicitor goes through a series of steps to ensure that the title to a property is legally transferred and registered.

Title to the following types of property can be transferred from one person to another through conveyancing:

• residential property;
• commercial property;
• agricultural property; or
• a mix of all of the above.

During the conveyancing process there are many important considerations to bear in mind.

• There will be a finite timeline. Most conveyancing is completed within 4 – 6 weeks from the date of exchange of contract. There is a considerable amount of work that must be completed within that timeframe.
• Most purchasers require finance to fund their purchase. The finance is secured by a mortgage on the title to the property. It is the purchaser’s responsibility to ensure that finance is arranged and ready for payment at the time of settlement.
• Sometimes a property that is being sold or purchased is subject to a lease. Leases on a property can affect the conveyancing transaction.
• Other interests or registered dealings relating to the property also need to be considered. Matters that may affect the title to a property are usually registered on the title to the property. These include:
  • easements;
  • covenants;
  • leases and sub-leases;
  • profit à prendre; or
  • common property.
• Fees and charges associated with the property will influence the amounts to be paid by each party at settlement. Fees and charges can include council rates, water rates, owners’ corporation fees and levies for strata or community title properties and land tax.

While the basic principles of conveyancing apply equally to all different types of property there are some rules that specifically apply to certain types of property. For example the pre-contract enquiries and requisitions that must be raised prior to the purchase of a commercial property are different to those that must be raised prior to the purchase of a residential property.

This Legal Guide on Conveyancing gives a general overview of relevant laws based on the position in NSW at the time of writing. Most other states and territories have similar laws. Before making important decisions it is advisable to obtain legal advice specific to your situation. LegalEagle’s™ free directory profiles all lawyers in Australia. You can use it to Find a Lawyer near you who specialises in the area of Conveyancing and Property law.

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Warning: Information provided through LegalEagle™ is for general guidance. It is not legal advice. Laws and procedures referred to may change and differ between states, territories and nationally. There may also be important exceptions or qualifications. Only a lawyer providing formal legal advice can assess your particular circumstances to determine how the law will apply.