Helpful Guides

A Quick 5-Minute Guide to Conveyancing for Property Purchasers


Written by Ching Cao, May 2018
What is conveyancing? To put it simply, conveyancing is the process where property is transferred from the seller to the purchaser. The process itself typically takes around 30 days. We have prepared a short guide below setting out the key steps in what you as the purchaser should expect during the conveyancing process. For the sake of brevity we have only set out those steps that require action from you and not all tasks undertaken by the conveyancer.
1. Receive copy of contract of sale and form 1 from agentAt this step, we recommend that you ask your conveyancer to review both documents before signing the contract to identify any potential issues and make any amendments to the contract if necessary.
2. Contract of sale signedBoth you and the seller will need to sign the contract. The contract is legally binding and is enforceable against you and the seller after both have signed.
3. Deposit paidThe deposit is generally 10% of the purchase price (although it could be higher or lower). This is paid to the agent or vendor’s trust account usually within a few days of the completion of step 2.
4. Cooling off period endsThe cooling off period starts when you receive the form 1 and ends after 2 business days. You can ‘cool off’ and terminate the contract for any reason during this time. Please note that there are certain situations where the purchaser does not have the right to cool off (e.g. if property is purchased at an auction).
5. Formal approval for loan obtained You will need to arrange with your mortgage broker to obtain a formal approval for your loan as soon as you have entered into the contract. The bank typically needs around 7 days (sometimes longer) before it can be ready to settle (see step 9).
6. Verification of identity and verification of authority conductedThis is where your conveyancer verifies your identity by checking your ID documents and verifies that you have the authority to undertake the purchase (usually you will need to provide a copy of your loan document).
7. Settlement Statement providedThe settlement statement sets out all moneys payable in the conveyancing process (such as stamp duty) as well as the gap between the loan and the total amount required from you to settle. You will need to deposit this gap amount into the conveyancer’s trust account before settlement can proceed.
8. SettlementThis usually occurs 30 days after the contract is signed (step 2). At settlement, representatives for the seller, the purchaser, the purchaser’s bank and (if the seller has a mortgage) the seller’s bank meet to exchange various documentation and the purchaser’s representative makes payment for the rest of the 90% of the purchase price. You do not need to attend settlement yourself. Your conveyancer will notify you after this is complete and you can then go pick up your keys from the agent.
This article is meant to be short, informative and easy to understand for non-land industry professionals and as such contains simplified terms and generalised concepts. If you want to clarify or discuss anything further, please do not hesitate to contact me on (08) 8278 4291.