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Conveyance

What is it and what does it entail

Conveyance (often improperly called conveyancing) is the legal term for the process of transferring property ownership from one person to another.

There are two main stages in conveyance in Australia: the first stage leads to an exchange of transfer contracts and the second leads to the completion of the sale, when you become the new owner. Conveyance duties and laws in Australia vary with the state or territory where the property is situated, but the information below generally applies.

Conveyance includes carrying out ‘searches’ to ensure that proper title is obtained, arranging the necessary registration of the title, checking whether the land has been registered and the existence of any restrictive covenants, enquiring about any planned developments that may affect the value of a property (such as a new airport runway or motorway at the bottom of the garden), checking that land tax, council and water rates have been paid by the previous owner (if not, the new owner must pay them), and drawing up a contract of sale. Searches should include the following:

Checking the title deed.
Checking the zoning certificate, issued by the local council, which specifies what the surrounding land may be used for (e.g. industrial or commercial development).
A strata records search (for strata title properties), which includes checking that a building is adequately insured, identifying charges/levies, identifying any limitations or restrictions on the use of the property, and whether animals are permitted.
Enquiries with the local council and utility companies as to whether the property is clear of debts.
Checking the building inspection report.
Checking the drainage or sewerage service diagram.
Checking the pest certificate, which confirms that the building is free of pests, including termites.

Property conveyance in Australia is usually done by a solicitor (lawyer) or a conveyancer (also called a land broker, land agent or settlement agent), although you can do it yourself. In the ACT, Queensland and Tasmania, solicitors have a monopoly on conveyance, and in Victoria a conveyancer must work with a solicitor, but in other states you can engage a conveyancer. Some lenders carry out conveyance as a free service to borrowers. Separate conveyance fees are usually paid by both the buyer and the vendor (in some states the buyer’s costs are higher, as there’s more work involved).

There isn’t a fixed fee for conveyance, which can range from around $500 to $1,700. Shop around for the lowest rate, as some solicitors and conveyancers negotiate. Conveyance companies are generally cheaper than solicitors and usually levy fixed fees with no hidden charges. Always check what’s included in the fees and whether a quoted fee is ‘full and binding’ or just an estimate. A low basic rate may be supplemented by much more expensive ‘extras’ (called disbursements). Ask your colleagues, friends and neighbours and if they can recommend a solicitor or conveyancer and try to obtain a binding quotation in writing. It isn’t wise to use a solicitor or conveyancer who is acting for both the borrower and the lender, as conflicts of interest could arise.

It’s possible and legal to do your own conveyance, and there are a number of DIY kits available. However, you will need to do at least ten hours’ work and you require a good grasp of details plus a good measure of patience. Conveyance isn’t recommended for most people, as it’s complex, risky and time-consuming. If you miss a mistake in the lease, you could be left with an unsaleable property – if a solicitor or licensed conveyancer is at fault, you can at least sue him!