By Aleena Taylor ([email protected])
Ms. Taylor is a conveyancing lawyer at Provey, (www.provey.com.au), a group of independently owned and operated professional services firms comprised of Provey Legal and Provey Conveyancing and a trusted name in property law in Melbourne, Australia. and a long-time writer on property conveyancing trends.
For most people, conveyancing is just about a legal expert dealing with the steps and formalities during a property trade. However, there is much more about the work of a conveyancer that most individuals are unfamiliar with. To provide you with unheard information about conveyancing, we have jotted down the top facts. So, without further delay, let’s check them out.
Seller Can Demand A Deposit While Exchanging Contracts
At the time of contract exchange between two parties, the seller has the legal right to ask for some percentage of the total property price. In most cases, the amount is around 10% but it can vary. Hence, if you are planning to buy a property, don’t forget to make an arrangement regarding the required funds in advance.
In some situations, the buyers depend on the mortgage amount and don’t have enough funds. But still, depositing an amount less than 10% is not recommended as it can cause problems in closing the deal later. If such a circumstance occurs, it is better to consult your conveyancer to get the best advice.
Sellers Need To Disclose The Property’s Additional Items
A lot of times, the sellers don’t provide the fixtures and fittings with the property after purchase, which leads to disputes later. When the buyers visit the house for inspection, they showcase good fittings and accessories, to attract them. But once the deal is finalised, they take the additional items out of the property.
To avoid this issue, property sellers are now obliged to mention all the fittings, furniture, and accessories in detail to the buyers. This way, the individual who is buying the property, has a clear idea about what he will get along with the purchase. It helps streamline the conveyancing process for both parties and their respective conveyancers.
You Can Withdraw an Offer before It Is Finalised
The buyers are only bound to purchase the property when the respective seller approves their signed offer and informs them about the same. Till then, if you changed your mind or got a better deal, you can withdraw the offer. Consequently, the seller can no longer force you to buy the property as per the law.
To effectively complete the offer withdrawal formalities, the buying party needs to get in touch with the seller’s agent (preferably via email). A conveyancer can effectively assist an individual regarding it. Afterward, the seller’s party approves the cancellation. It helps buyers to avoid investing their hard-earned money in the wrong property.
Real Estate Agents Need To Brief You About Property Boundary
The other party’s real estate agent must provide you with clarity over the boundary and fencing of the infrastructure. As property trade involves huge investments, a small shift in the property boundary can lead to issues and disputes between both parties. Therefore, it is better to clarify things in the first place.
Moreover, the buyers should take an initiative on their own to ask the agents if there are any sorts of irregularities in the property. Sometimes, owners intentionally don’t brief potential buyers about the property issues. Otherwise, either the deal can be cancelled or they don’t get a better value.
For this reason, the buyers should carefully inspect the property and research to ensure there are no issues with it. A conveyancer deals with this process on your behalf, providing you with convenience and peace of mind.
Joint Ownership Is Of Multiple Types
Joint ownership is one such term about which most individuals stay confused all the time. It is further divided into two categories: Joint Tenants and Tenants in Common.
● Joint Tenants
In this type of tenancy, all parties hold an equal share in the partnership. So, the property is uniformly divided into the total number of tenants. For instance, if one shareholder is deceased, the other members automatically get the respective portion of the property.
However, any of the tenants can’t leave their share on their own. The only possibility of breaking the tenancy is selling the property. When the property owner gets updated, the joint tenancy automatically severs.
● Tenants in Common
In this type of tenancy, the shareholders can have different percentages of ownership in the respective property. For example, one tenant may hold 1/4 part of the property (25% ownership), while the other has 3/4 ownership (75% of the property).
Unlike “Joint Tenants”, in this type of partnership, the owners can release their share of the property, and allot it to someone else. However, they need to have proof of the financial agreement in the form of a trust deed.
Conclusion
All the above-mentioned facts have one thing in common: property trade requires detailed knowledge about legal formalities and related processes. For this reason, hiring a conveyancer is the best way to buy or sell property in a profitable manner. Because you don’t need to worry if something is wrong in the documentation, or where to submit the tax and charges. Everything is managed by a professional who is an expert in the legal domain.
