What is a conveyancer?
Expert tips on how to choose a conveyancer
Finding the right conveyancer to work with can be easier said than done. With that in mind, our General Manager of Money, Stephen Zeller, has some tips for finding and picking your conveyancer.
Stephen Zeller
General Manager – Money
Conveyancers are there to help
A conveyancer is someone you should feel comfortable asking for help at any point, especially with any questions your mortgage broker can’t answer. At the end of the day, you’re paying your conveyancer for their service, so don’t be afraid to reach out to them with any questions or issues you may have.
Don’t settle for the cheapest option
The price you’ll pay for a conveyancer will typically vary, but don’t just go with the lowest-cost option without surveying what’s available. A more expensive conveyancer may not necessarily provide a better level or quality of service than a cheaper conveyancer, but you won’t know until you’ve spoken to both of them and found out more about their services.
Ask for recommendations
Friends and family will likely have already utilised a conveyancer when purchasing a property in the past, and they may be able to recommend you one that they had a positive experience with.
What you need to know about conveyancers
What is a conveyancer?
A conveyancer is a legal professional qualified in conveyancing – the transfer of property ownership between parties. Ownership is conveyed through the property’s legal title, which must be transferred from one party (the seller) to another (the buyer) for the buyer to be legally recognised as the owner of the property. A conveyancer can also be called on to help update (rather than transfer) a property’s legal title, modify an easement on the property or handle the legal aspects of registering a subdivision.
When buying a property, having a conveyancer in your corner as early as possible can be invaluable for a number of reasons, including:
- Peace of mind knowing the legal aspects of your homebuying journey and your obligations on settlement day are in experienced hands.
- Having someone on-side who can negotiate your desired terms on your behalf, provide legal advice and guide you through the ins and outs of your legal obligations and the contract of sale itself.
- If something goes wrong or someone makes a mistake during the sale of the property, your conveyancer will be able to help you work through or address the issue in question.
Conveyancers vs. solicitors explained
Generally speaking, a conveyancer is someone solely qualified to provide conveyancing services, whereas a solicitor is typically a fully licensed and qualified lawyer who can advise and assist with a much broader range of legal matters, both general and to do with property law.
Before you engage a solicitor or conveyancer to assist with your property transaction, you should ask for an estimate (and breakdown) of costs from a handful of conveyancers and solicitors so you can get an idea of how much the respective services cost, and which one might be more financially appropriate for you.
Additionally, it’s important to note that in Queensland and the ACT, conveyancing is not a standalone profession – conveyancers in those jurisdictions are required to hold a law degree, making them solicitors specialising in conveyancing rather than conveyancers only.
What does a conveyancer do?
During the homebuying process, a conveyancer will generally be expected to handle their client’s legal responsibilities and obligations, which include:
- Going over the contract of sale with a fine-tooth comb to check everything’s in order.
- Acting as the main point of contact between you, the buyer or seller of the property, the lender and their respective solicitors and/or conveyancers, both in the lead-up to and at the settlement date.
- Receiving, completing and sending off any legal documents that require your attention.
- Keeping your deposit funds in a trust account for safekeeping until settlement day.
- Making sure any payable duties or taxes (including stamp duty) have been paid on your behalf.
- Making sure the information on the property report lines up with local council and federal property records, and running a title search to check that there are no outstanding issues or unpaid taxes attached to the property.
- Acting as your legal representative in a general sense, and helping you successfully navigate the settlement process and your property transaction without any hitches or roadblocks.
How much does a conveyancer cost?
The cost of a conveyancer or conveyancing solicitor will vary from state to state and from conveyancer to conveyancer. That being said, the overall cost of your conveyancing fees will typically be influenced by factors like:
- Whether you hire a conveyancer or a solicitor providing conveyancing work
- The range of services you require them to perform
- The complexity of the conveyancing services they’re required to provide.
Keep in mind that some conveyancers may charge a flat fee for their basic services, and then tack on extra charges for any required additional or out-of-scope services for your property purchase Others may utilise a more ‘all-in-one’ fee structure.
Choosing and working with your conveyancer
Do I need a conveyancer to buy a house?
You are not legally required to hire or work with a conveyancer when purchasing a property. However, if you’re not a legal professional and decide to DIY when it comes to conveyancing, you may have a tough time handling all the legal work and financial loose ends that a conveyancer would normally take care of on your behalf.
Furthermore, if you decide to do your own conveyancing and end up missing an important deadline or obligation, you could end up losing your deposit, your future home or even both. So, while you don’t have to hire a conveyancer for a property purchase, going it alone generally isn’t for the unknowledgeable or inexperienced.
Do I need a conveyancer to sell a property?
You’re not legally required to hire a conveyancer when selling a property either but, as with buying a property, the process is generally complex enough that most sellers opt to hire a conveyancer rather than handle the legal legwork themselves.
What issues can a conveyancer help me with?
Several issues can potentially pop up during the conveyancing process that could impact the conditions or legality of your purchase, or what you can legally do with the property once you own it. These issues could potentially be related to:
- Identifying and communicating key dates to you, including the finance approval date and the deadline for building and pest inspections
- Any heritage listings or special conditions attached to the property in question or nearby properties
- Land tax implications
- Building approvals or Development Approvals for incomplete or prior construction work commenced by the former owner
- Proposals or plans for any future roadworks near the property
- The property’s zoning regulations (what it can legally be used for)
- Any easements on the property such as a shared driveway or a stormwater drain or caveats that have been lodged
- Difficulties or additional legal processes on the seller’s end (e.g. one of the owners has passed away, or the sellers are recently divorced and subsequently separate parties).
These are just examples, though; every buyer and buying process is different, and you may run into none, some or all the above complications. It’s generally best to have a conveyancer on hand just in case, because you’re always better safe than sorry.
Should I include conveyancer costs in my home loan amount?
As a conveyancer will typically be responsible for managing your saved deposit and moving your money around where it’s needed, their costs will generally be in addition to (or as part of) the saved deposit. You’ll need to keep this in mind when assessing the size of your deposit, as it may affect your borrowing power and/or your potential LVR.
Be sure to research conveyancers before committing to one
If you’ve decided to engage the services of a conveyancer, there are some things to keep in mind and ask of any conveyancer you’re considering working with:
- Are they a member of the Australian Institute of Conveyancers?
- What do they charge for their services?
- What does that initial charge include?
- Do they specialise in a certain type of property or property transaction?
Some real estate agents or mortgage brokers might recommend conveyancers they’ve worked with in the past. You may want to go with them for convenience but remember you can always compare your options and explore alternatives.
In addition, friends and family are often a good source for advice and may recommend a specific conveyancer, which could make the search a little easier.
What to do next
Once you’ve found a conveyancer you’re happy with, they’ll request any information and documentation they need to help you secure the property. You don’t usually need to visit the conveyancer’s office, as documentation can be sent by post or email. However, you can organise a time to meet in person if you prefer.
Meet our home loans expert, Stephen Zeller
Stephen has more than 30 years of experience in the financial services industry and holds a Certificate IV in Finance and Mortgage Broking. He’s also a member of both the Australian and New Zealand Institute of Insurance and Finance (ANZIIF) and the Mortgage and Finance Association of Australia (MFAA).
Stephen leads our team of Mortgage Brokers, and reviews and contributes to Compare the Market’s banking-related content to ensure it’s as helpful and empowering as possible for our readers.