Transfer of Property | Conveyancing

Conveyancing is the legal process of transferring ownership of property. There are many parts to this process. We do some things and you must do some. This guide is designed to help you avoid problems that may arise when selling a property. It is concerned with residential property only: houses, units and vacant residential land.

IN A NUTSHELL:

When you decide to sell your property, you should contact an estate agent to list the property for private sale or auction.

It is a requirement of the Sale of Land Act that a disclosure statement be given to the purchaser before they sign a contract of sale. This is known as a "vendor's statement" or a "section 32 statement". It is important that this statement is accurate and comprehensive as any omission or error, even though innocent, may result in a purchaser being entitled to withdraw from the contract before settlement.

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When you receive and accept any offer for the purchaser of your property that agreement will not usually be binding until you and the purchaser have both signed a contract of sale or contract note. Sometimes this is done where you as vendor and the purchaser sign separate copies of the contract of sale and these are then exchanged. It is at this point that you have an enforceable contract.

The Sale of Land Act provides that a purchaser may withdraw from a contract within 3 business days after signing it. Therefore you should not regard the property as having been sold until this period has expired. There is no cooling off period if the property is sold at auction, or within 3 days of the auction date, or if the purchaser has received independent legal advice from a solicitor prior to signing.

Once contracts are exchanged we will administer your sale through to settlement.

Contracts are often expressed to be "subject to finance". If your sale contract includes information relating to the purchaser's finance, the purchaser may be entitled to withdraw from the contract if loan approval for the amount specified is not received by the date provided in the contract. The purchase must make reasonable efforts to get the loan approved.

It is usually the purchaser's obligation to notify the vendor if loan approval has not been received within 2 business days after the date for approval. If no notice is received the purchaser is obliged to complete the purchaser.

If your sale contract contains any "special conditions" you must read them carefully and ensure that you have complied with them.

The deposit can only be released to you before settlement if:

1. The contract is unconditional; and
2. You have given the purchaser a notice setting out the amount required to discharge any mortgages over the property; and
3. Either the purchaser consents to the release of the deposit or 28 days elapses after you make a request for the release of the deposit without a response from the purchaser.

In order to obtain a release of deposit you should ask us for the relevant paperwork, and if you have a loan secured against the property, provide us with details of your lender so that we may approach them for the information required.

Agents usually take their commission from the deposit when released because their work has been completed at that point.

The settlement date is the date on which the balance of purchase money is payable. This will be specified in the contract. Please check to ensure that it is correct.

Unless otherwise agreed you will need to have vacated the property by the settlement date. We will arrange for payment of the proceeds of sale in accordance with your instructions. It will not be necessary for you to attend settlement.