Before we explain the process of conveyancing in Melbourne, it is important to understand what conveyancing actually is.
Conveyancing refers to the legal process of transferring property from a vendor to a purchaser. It can also include the process of registering a mortgage with a lender. The process can take around 30 days, but it may take much longer for off-the-plan purchases due to construction timelines.
How the conveyancing process works in Victoria
Conveyancing involves both buying and selling sides. Each side has different responsibilities depending on the transaction.
For buyers
A conveyancer or property lawyer will:
- review the contract of sale and explain key terms
- track deadlines and important dates
- work with your bank to ensure funds are ready for settlement
- calculate stamp duty and other government fees
- manage settlement in person or online
For vendors
A conveyancer will:
- ensure the seller meets all contract obligations
- monitor key dates and update the client
- calculate mortgage payouts
- prepare settlement statements
- notify authorities such as councils and water providers
Step 1: The contract of sale
The contract of sale sets out the terms of the transaction. It is a key legal document. Poor drafting can lead to disputes between buyer and seller. It must include required certificates, disclosures, and any special conditions.
Step 2: The offer
The buyer makes an offer to the seller. The seller can accept the offer or negotiate price and terms.
Step 3: Paying the deposit
The buyer may pay a deposit once terms are agreed. This shows commitment but does not always make the contract binding. The property usually remains on the market until contracts are exchanged.
Step 4: Property checks and risk
The seller must maintain the property until settlement. Buyers often arrange insurance from the time of contract to reduce risk.
Step 5: Exchange of contracts
Both parties sign the contract and exchange copies. The real estate agent usually manages this process. Once exchanged, the agreement becomes legally binding.
Step 6: Cooling-off period
Buyers may have a cooling-off period after exchange. They can withdraw during this time. Auctions do not include a cooling-off period.
Step 7: Transfer of property
Most conveyancing in Victoria now happens online through PEXA. The buyer’s conveyancer creates a workspace and invites all parties.
In some cases, paper transfers are still used. Stamp duty must be paid before settlement or arranged at settlement. Buyers should prepare all documents in advance.
Step 8: Settlement date
The settlement date is agreed between both parties. Off-the-plan purchases may take years to settle because construction must be completed first.
Step 9: Mortgage payout
If the seller has a mortgage, the lender provides a payout figure. The lender attends settlement and releases the title once the loan is repaid.
Step 10: Adjustments
At settlement, costs such as council rates, water rates, strata fees, and rent are adjusted between buyer and seller.
Step 11: Pre-settlement checks
The conveyancer checks the title before settlement. This ensures no new issues such as caveats have been added since exchange.
Step 12: Post-settlement
In online settlements, funds are transferred immediately through PEXA. In paper settlements, documents are lodged manually with Land Use Victoria. Authorities are then notified of the new ownership.
Summary
Conveyancers and property lawyers guide buyers and sellers through every stage of the process. They prepare documents, manage funds, and ensure compliance with legal requirements.
A buyer’s conveyancer handles contracts, settlement, and financial adjustments. A seller’s conveyancer manages documents, title matters, and settlement preparation.
Conveyancing reduces legal risk and simplifies property transactions. For professional support, it is best to work with an experienced conveyancer or property lawyer.
Irvine Lawyers provides conveyancing services across Melbourne, with offices in Warrnambool and South Morang.