Property Investment Conveyancing

Investment Property Conveyancing Guide for the Property Investor...

Conveyancing is the legal transfer of the title of a property from one owner to the next, or the granting of a mortgage or security interest over the property. The process of conveyance has two crucial stages: the exchange of contracts between the vendor (seller) and the purchaser; and the completion or settlement when the legal title passes from one these parties to the other.

Before placing a property on the market your vendor should have produced a Contract of Sale prepared by a Solicitor or Licensed Conveyancer. The vendor must be able to prove that he or she has legal title to the property, and there is no encumbrance, caveat or other reason the property cannot be sold. The vendor is required to produce a number of specific certificates and documents* to support this claim.

You are also entitled ask the vendor questions (requisitions). A statement of the purchaser's cooling of rights must also be attached to the contract.

Conveyancing consists of a number steps the first of which include arranging finance and collecting specific information such as title searches, certificates and inspections. After this the contract conditions need to be checked before the contracts are signed and exchanged.

At this point it makes commonsense to arrange your own insurance for the property so that you are covered immediately settlement takes place.

Requisition on Title, preparation of land transfer and rate adjustments need to be carried out, and settlement arranged with vendor and bank before settlement takes place. After settlement lodgement and notification are sent to authorities.

Contract Document Checklist

• Section 149 Certificate from the Local Council, detailing zoning and other information
• Sewerage diagram
• Copy of the title folio from the Land Titles Office
• Copies of all documents creating easements or restrictive covenants
• Cooling off period statement
• Notice directing the parties to section 52A of the Conveyancing Act Sale of Land Regulations
• For strata units, the vendor must attach copies of the folio of the Register for the lot and common property and a copy of the strata plan.