Lexus Conveyancing is happy to announce that the First Homebuyers Seminars will be returning in 2011.

This is a free two hour seminar which gives potential homebuyers the answers and confidence they need to take the plunge, without feeling as though they are being left in the dark. The seminar covers the following:

  • The five steps to buying a property
  • How to save thousands just by choosing the right loan
  • How home ownership is not as far off as you may think
  • Tips to help you find and purchase your home
  • Common pitfalls to avoid

All those who attended the seminars in 2010 found them enjoyable, insightful and extremely beneficial.

• VENUE: ING Board Room, Level 20/114 William Street, Melbourne
• DATE: Tuesday 1st March
• TIME: 6-8pm
• RSVP: Please email name and number to reception@lexcon.com.au or call 9670 0744 to secure a place

This is a not to be missed opportunity! We look forward to helping you get started on your first home journey.

1.    What are the legal steps in a normal conveyance?
There are a number of steps in a standard conveyance, although they vary from State to State:

• Prepare contract  and other disclosure documents (depends on your State)
• Exchange contracts
• Tell mortgagee about the sale
• Answer Requisitions on Title
• Receive and sign Transfer of Land
• Arrange mortgage discharge Settlement

2.    Who does conveyancing?
Mainly solicitors and licenced conveyancers.

When you are deciding which to use, some of the issues you should think about are:

• What’s the cost?
• What protection is there if they make a mistake?
• Is there indemnity insurance which covers faulty work?
• Are there other issues that you may need advice about?
• Does the conveyancing looks straight forward (are there caveats, covenants, has the house been owner-built)?

3.    What if there is a caveat on the title?
A caveat is a sign that someone else claims a financial interest in the property.

If there are any caveats on the title, the buyer will probably ask you why it is there and what will be done about it. The buyer may make the withdrawal of the caveat by settlement a condition of the contract.

4.    What if the buyer wants to settle early?
All the better – as long as you can move out in time it gives you the cash earlier.

5.    Should I let the buyer move in before settlement?
Beware! You certainly don’t have to do this. If you’re happy for this to happen, get advice to make sure you don’t compromise any rights in relation to the settlement.

You would also need to clarify the legal basis on which they are living in your property, i.e. are they tenants or living there under a licence? Check how it affects your insurance.

6.    What happens if the buyer can’t settle by the due date?
You may be able to claim compensation – the interest rate should be written in the contract.

7.    Does capital gains tax apply to the sale of houses?
Not if is it your home i.e. your principle place of residence or your bought the property before 20 September 1985. To check your specific situation, you must get professional advice (e.g. your accountant).

8.    Can I negotiate the commission with the agent?
Yes – and you should, or else get a friend/relative who understands these issues to help you negotiate the best rate. For instance, the agent may get a discount for news classifieds – you may be able to negotiate to get part of this. Go shopping for an agent, but be careful to compare “apples with apples”.

9.    What if my lawyer makes a mistake?
Good question. All legal practitioners in Australia are covered by indemnity insurance, that protects you against losses. You must satisfy yourself that a licensed conveyancer is covered if they make a mistake.

10. Can I put extra conditions in the contract?
Yes. Your advisor will usually know what conditions to add. They could include, a change to the completion date, early release of deposit, penalty payments if the sale is delayed etc.

Conveyancing, the process of transferring ownership of property from the vendor to the purchaser, may be carried out by a solicitor or a conveyancer who, while not a legal practitioner, must be licensed under the Conveyancers Act.

Julie Pugh of Lexus Conveyancing describes the conveyancer’s role in the buying and selling process.

“We undertake the legal transaction of transferring property from vendor to purchaser,” she says. “When clients are selling, they come to us to have the Section 32 prepared.”

“That’s the roadworthy certificate for the property — the disclosure statement the vendor is required by law to give the buyer.

“When acting for the buyer, we like to see the clients before they purchase. We review the legal documentation and advise them on it, so they’re fully aware of what they need to know before signing, such as any planning restrictions that might apply.

“If it’s a city property it may have heritage overlays, which the buyer needs to be aware of if they want to extend or redevelop. In newer subdivisions there are lots of restrictions — design guidelines and building envelopes to comply with before the buyer can do what they want with the property.”

Ms Pugh says the main reasons for using a conveyancer rather than a solicitor are lower fees; and conveyancers specialise in the area.

“Conveyancing is all we do,” she says. “We’re licensed to do the legal work and we’re up to date with all the legislative changes.”

“We also work closely with lawyers. One of our partners is a solicitor and if a legal matter arises, the solicitor will advise the clients.”

Conveyancers normally charge a set fee of about $600. Costs are higher for off-the-plan purchases, as contracts are more complex and the reviewing process takes longer.