Conveyancing is the legal process of transferring an ownership interest in real property from one individual to another.
It also refers to the responsibility of transferring title from seller to buyer, as well as other documents related to this process like the transfer of mortgage, lease agreement, or trust deed.
This is not a simple task for most people since it involves a lot of legal terms and conditions that may be unfamiliar at first glance.
You will need an attorney or real estate agent with expertise in conveyancing to help you out. But even with professional assistance, there are still some tips you can keep in mind when dealing with the process of buying or selling property.
Efficient communication and documentation are key factors that will facilitate this process smoothly.
Know your rights as a buyer
The seller is always expected to fulfil their side of the contract by providing a deed of title for the property. If the title is not clear or there are other issues, the seller is responsible for resolving them.
All documents that are part of the conveyancing process must be original and notarized. If there are any discrepancies, documentation must be submitted again.
You also have the right to ask for a change in the title. For example, if there is a lien on the property that you don’t want to get transferred to you, you can ask the seller to take care of it.
If there are any conditions on the sale, both parties should be aware of their rights and responsibilities. If any party breaches the contract, they are entitled to proceed with a lawsuit.
Be aware of deadlines and conditions
If the property is in contract, you will have to agree on the terms and conditions of the sale. This contract is a legal document that will outline the sale price, the type of financing being used, the amount of down payment, and the closing date.
When the contract is signed by both parties, a deadline for the completion of the sale is agreed upon. This is also the time that you will have to complete the financing associated with the property.
If you are buying the property, you have to make sure that the seller doesn’t breach any conditions of the contract. If any of these conditions are breached, you have the right to break the contract.
Check the chain of title
The chain of title refers to the history of the title of a particular property. It can help you to determine if there are any disputes related to the title of the property.
If there is any issue with the title, you may decide to walk away from the deal.
If the property is covered by government-backed mortgages, you can check the chain of title to determine if there are any issues with the existing mortgage.
If there are any issues, you can choose to ask the seller to resolve them or wait for them to be resolved.
The buyer can also make sure that the issues are resolved before the closing date. For example, if the seller has a third-party lien on the property, you can request that they wait until the lien is repaid before they complete the sale.
Ask for supporting documents
Before you complete the transaction, you can request that certain documents are presented to you or that you are allowed to see the seller’s title insurance policy.
You can also request that the seller sign a letter of acknowledgement or affidavit of accuracy. These documents will help to resolve any issues related to the property if any arise in the future.
Some of the documents you can request from the seller are a survey of the property, a title search, proof of ownership, and a title insurance policy.
When buying the property, the seller will have to provide you with a title insurance policy. This policy will protect you from any title issues that may arise in the future due to issues with the chain of title.
Communicate with your mortgage lender
Your mortgage lender will be involved in the process of conveyancing and will let you know if there are any issues related to the property.
You may ask your lender to give you a breakdown of the various issues that you need to be aware of.
You may also communicate with your lender to find out if there are any changes in the title of the property that will affect your mortgage.
You can request that your lender make the necessary adjustments in their records.
You should also keep in touch with your lender by confirming dates and timelines as they pertain to the transfer of the property.
This way, you will be able to meet your lender’s requirements in a timely manner.
Conveyancing is a very important process in real estate investing, as it is the process that transfers the ownership of property from one party to another.
There are a number of things that buyers and sellers should keep in mind during this process, especially when it comes to dealing with the title of the property.
Buyers can ensure a smooth process by being aware of their rights and expectations, as well as checking the chain of title and asking for supporting documents that pertain to the property.
Sellers can help the process run smoothly by being aware of their obligations, and communicating with the buyer and their mortgage lender.