What Does a Conveyancer Do When Selling a House?
Selling a home brings emotional stress that can get pricey if you make mistakes. Property transfer from seller to buyer needs conveyancing as a vital part to make everything run smoothly.
A conveyancer works as a licensed professional with expertise in property law to handle real estate sales' legal aspects. The law doesn't require their services everywhere, but hiring a conveyancer makes sense to selling property. Mistakes in contracts or missing legal requirements lead to major financial and legal problems.
Your qualified conveyancer takes care of all transfer documents and makes sure the property changes hands legally. They coordinate settlement timing with the other party's attorney. The paperwork and administrative tasks help complete contract exchanges and settlement, which usually takes 6 weeks after exchanging contracts.
This piece walks you through a conveyancer's role in home sales. You'll learn everything from Contract of Sale preparation to post-settlement duties that make up this vital part of property transactions.
Preparing the Contract of Sale
The lifeblood of selling property starts with preparing a complete Contract of Sale. This legal document helps transfer property ownership and needs careful preparation to avoid disputes or legal action.
What documents are needed
A well-prepared Contract of Sale has several key elements. These include property details, names of both parties, estate agent information, purchase price, deposit amount, balance owing at settlement, and any special conditions. The contract must specify whether the purchase price includes or excludes GST and its calculation method.
Supporting documentation varies by state, but usually includes:
Title search confirming ownership
Zoning certificate from the local council
Drainage diagram showing sewer lines
Copies of documents for easements or restrictions
Land tax certificate
Building permits and compliance certificates
Sellers of strata properties must provide the property certificate for the lot and common property. They also need to include a copy of the strata plan and the by-laws affecting the strata scheme.
Including fixtures and fittings
Many people overlook fixtures and fittings in the Contract of Sale. The law automatically includes fixtures (items permanently attached to the property) in the sale unless specifically excluded. However, fittings (removable items) don't come with the property automatically.
The contract should clearly list which items stay with the property and which will be removed to avoid disputes. This becomes crucial for items in grey areas, like removable floor coverings or above-ground pools. Both parties stay protected when clear written agreements become part of the contract, which prevents misunderstandings that could affect the sale.
Disclosure obligations for sellers
Sellers must provide specific property information to buyers before signing contracts in most states. This information covers:
Easements, covenants, and restrictions
Zoning and planning controls
Flooding or bushfire-prone zones (where applicable)
Outstanding rates or charges
Building approvals and certificates
Buyers can terminate the contract even after signing if the disclosure is inadequate. On top of that, substantial fines may apply for providing false or misleading information. A professional conveyancer helps ensure compliance with all state-specific disclosure requirements.
Managing Legal and Financial Requirements
Legal and financial aspects of selling property need careful attention from a qualified conveyancer to ensure uninterrupted transactions.
Understanding GST withholding rules
GST payment procedures have changed substantially for certain property transactions since July 2018. Buyers must withhold the GST amount and send it directly to the Australian Taxation Office at settlement when selling new residential premises or potential residential land.
Your conveyancer must give written notification to the buyer about whether they need to withhold GST from the contract price. This notification has the supplier's name, ABN, GST branch number (if applicable), and the exact amount to be withheld.
Not all property sales need GST withholding. Properties created through substantial renovations, commercial residential premises like hotels, residential premises that are no longer new, and certain types of potential residential land are exempt.
Handling title searches and certificates
A Certificate of Title is a vital element in the conveyancing process as the official record of property ownership. The document has current ownership details, volume and folio number, survey plan number, document numbers for encumbrances, and information about any caveats against the title.
Your conveyancer will conduct complete searches during the selling process to find any potential issues that might affect the property transfer. These searches show important information about outstanding debts, third-party interests in the property, easements, restrictions, or covenants.
Clarifying special conditions in the contract
Special conditions are extra clauses that address specific circumstances standard contract terms don't cover. These conditions might relate to needed repairs, working order of fixtures and fittings, subject-to-finance clauses, or building inspection allowances.
Special conditions take precedence over general conditions in a Contract of Sale, so precise wording matters to prevent disputes. Poorly written special conditions can create misunderstandings about whether conditions have been met. Expert legal advice from your conveyancer before finalising any special conditions helps protect the transaction's integrity.
Exchange and Settlement Process
The property conveyancing experience reaches its final significant stages during exchange and settlement. This process legally transfers ownership from seller to buyer.
What happens during the exchange of contracts
A property sale becomes legally binding during the exchange of contracts. Both parties sign their own copies of the contract and swap them through solicitors, conveyancers, or real estate agents. Either party can change their mind without legal consequences before this formal exchange. The buyer's deposit, usually 10% of the purchase price, stays in trust until settlement.
Cooling-off period explained
Most residential property sales include a cooling-off period that lets buyers withdraw from the contract after exchange. NSW buyers get 5 business days after exchange, while off-the-plan property buyers receive 10 days due to added complexity.
Properties bought at auction or exchanged on auction day after passing in don't have this period. Buyers can skip this right by providing a "66W certificate" or adjusting the period through a written agreement. A buyer who uses their cooling-off rights loses 0.25% of the purchase price.
Adjustments between exchange and settlement
After contracts are exchanged, your conveyancer completes settlement adjustments to ensure both parties pay their correct share of property-related expenses. This includes apportioning costs already paid by the vendor - such as council rates, water rates, strata levies, and land tax. These adjustments ensure that, at settlement, the buyer reimburses the vendor only for the portion of these charges that applies from the settlement date onward, creating a fair and accurate financial handover.
Coordinating with banks and agents before settlement
Settlement usually happens 6 weeks after contract exchange. Your conveyancer works with financial institutions, real estate agents and buyer representatives during this time. They confirm settlement details, organise final inspections, and check that all contract conditions meet requirements.
Discharging the Mortgage
Before settlement, your conveyancer coordinates with your lender to organise the mortgage discharge, which removes the lender’s claim on your property title. This process is prepared in advance but occurs automatically on settlement day as part of the settlement process. Your lender finalises the discharge and closes your home loan account, and any remaining funds are released to your nominated account as part of the settlement.
Finalising legal paperwork on settlement day
Your conveyancer handles ownership transfer through an Electronic Lodgment Network on settlement day. They prepare documents and financial details, including mortgage discharge payment information. The system electronically distributes funds as authorised and files documents with Land Registry Services after successful settlement. Your conveyancer confirms the completion and arranges the key handover to the new owner.
Post-Settlement Responsibilities
After settlement day ends, property sellers still have several key tasks to complete. Your conveyancer plays a crucial role in these final steps of your property sale.
Notifying authorities of ownership change
After settlement, most ownership notifications are handled automatically. Local councils and water authorities are updated as part of the settlement process, so the new owner will begin receiving rate notices without any extra action.
For strata properties, your conveyancer submits the necessary documents to notify the owners’ corporation of the change in ownership. This ensures that any future strata levies, communications, and responsibilities are directed to the new owner.
Releasing the deposit and paying the agent fees
The deposit held in trust becomes available after successful settlement. Real estate agents usually take their commission from this deposit on settlement day. Your conveyancer makes sure the agent gets their authorised payment and transfers the remaining money to you.
Some states allow early deposit release, but this needs specific legal steps and written approval from both parties' legal representatives. Your conveyancer gives you a final settlement statement that shows all the sale's financial details after completing all transactions.
Conclusion
Selling property comes with complex legal processes that need expert guidance to direct properly. A qualified conveyancer becomes your key partner in the selling experience. They handle vital documentation, legal requirements, and financial matters. Hiring a conveyancer might look like an extra cost, but their expertise protects sellers from mistakes that can get pricey or lead to legal issues.
Conveyancers take on several vital roles during the sale. They start by preparing a complete Contract of Sale that has all the needed documents. This contract clearly defines the fixtures and fittings included in the sale. It also manages state-specific disclosure obligations, handles GST withholding requirements, and runs full title searches to spot any issues that could affect the property transfer.
Your conveyancer works with banks, agents, and buyers' representatives during exchange and settlement to ensure smooth ownership transfer. Their work continues after the settlement. They help discharge mortgages, notify authorities about the ownership change, and release deposits.
Professional conveyancing services give sellers peace of mind. They ensure proper handling of all legal aspects of the property sale. A conveyancer does more than manage paperwork - they protect your interests throughout the sale while meeting all legal obligations. Given the financial and emotional investment in selling property, working with a qualified conveyancer remains one of the smartest choices a seller can make.
Ready to sell with confidence? Contact our friendly team here at Cassab & Associates for trusted, professional conveyancing support every step of the way.
FAQs
Q1. What are the main responsibilities of a conveyancer when selling a house?
A conveyancer prepares legal documents, coordinates mortgage discharge, organises the release of deposit, and secures title documents for transfer to the buyer. They also manage the Contract of Sale, handle disclosure obligations, and ensure compliance with legal requirements throughout the selling process.
Q2. How long does the conveyancing process typically take when selling a property?
The conveyancing process usually takes about 6-8 weeks from the exchange of contracts to settlement. However, this timeline can vary depending on the complexity of the sale and any specific conditions in the contract.
Q3. What happens on settlement day during a house sale?
On settlement day, your conveyancer finalises the transaction electronically. This includes exchanging documents, transferring the balance of the purchase price to you, and lodging all necessary legal paperwork with the relevant authorities. The process is completed digitally, ensuring a secure and efficient settlement.
Q4. Do I need a conveyancer if I'm selling my house privately?
While not legally required in some regions, it's highly recommended to engage a conveyancer even for private sales. They can help you navigate complex legal requirements, prepare necessary documents, and protect your interests throughout the selling process.
Q5. What are the post-settlement responsibilities of a conveyancer?
After settlement, a conveyancer handles any remaining administrative tasks, such as notifying the owners’ corporation for strata properties and releasing the deposit. They also provide a final settlement statement summarising all financial aspects of the sale.