Conveyancing

Conveyancing involves the preparation, lodgment, and exchange of legal documents to ensure a smooth and lawful transfer of property. Conveyancing is typically carried out by licensed conveyancers or solicitors who specialise in property law.

The conveyancing process in Victoria involves the following key steps:

Pre-Contract Phase:

Contract of Sale: The vendor's solicitor or conveyancer prepares the Contract of Sale, which includes details about the property, the parties involved, the purchase price, and any special conditions.

Section 32 Vendor's Statement: This document provides important information about the property, such as title details, zoning, planning restrictions, rates, and other property-related matters. The vendor must provide the Section 32 Vendor's Statement to the buyer before they sign the Contract of Sale.

Pre-Settlement Phase:

Property Inspections: The buyer may arrange property inspections, such as building inspections or pest inspections, to ensure the property is in good condition.

Finance and Due Diligence: The buyer arranges their finances and conducts due diligence on the property, checking for any potential issues that may affect the purchase.

Settlement Statement: The buyer's solicitor or conveyancer prepares a settlement statement, outlining all financial adjustments and the amount required to complete the purchase.

Settlement Phase:

Exchange of Contracts: Once both parties have signed the Contract of Sale, they exchange copies, and the buyer usually pays a deposit.

Title Transfer: The buyer's solicitor or conveyancer lodges documents with the Land Registry to transfer the property title into the buyer's name.

Discharging Mortgage: If the property is subject to a mortgage, the buyer's solicitor arranges for the mortgage to be discharged on settlement.

Stamp Duty: The buyer's solicitor pays the required stamp duty on the property transaction to the State Revenue Office.

Post-Settlement Phase:

Registration: After settlement, the buyer's solicitor lodges all necessary documents with the Land Registry for registration of the transfer of ownership.

Notification: The buyer's solicitor notifies various authorities and agencies of the change in ownership, such as the local council and utility providers.

It's important to note that the conveyancing process can be complex and may vary depending on the specific circumstances of the property transaction. Therefore, it is recommended to engage the services of a licensed conveyancer or solicitor with expertise in Victorian property law to navigate the process effectively and ensure compliance with all legal requirements.

In Victoria, the property conveyancing process is now conducted electronically through an online platform called Property Exchange Australia (PEXA). PEXA is an electronic settlement platform that facilitates the electronic lodgment and settlement of property transactions, making the conveyancing process more efficient and secure.

PEXA provides a digital platform where all parties involved in a property transaction, including buyers, sellers, solicitors, conveyancers, banks, and government agencies, can communicate and complete the settlement process electronically. This eliminates the need for physical paperwork and reduces the time and effort required for settlement.

The use of PEXA in Victoria has streamlined the conveyancing process and offers several benefits, including:

1.  Secure Transactions: PEXA provides a secure online environment for property settlements, reducing the risk of fraud and errors.

2.  Real-time Updates: All parties involved in the transaction can access real-time updates on the progress of the settlement process, ensuring transparency and reducing delays.

3.  Faster Settlements: Electronic settlements through PEXA can be completed more quickly compared to traditional paper-based settlements, as the transfer of funds and ownership can occur simultaneously.

4.  Reduced Paperwork: PEXA eliminates the need for physical paperwork, reducing administrative burden and the risk of document mishandling.

5.  Automatic Document Lodgment: PEXA automatically lodges relevant documents with the Land Registry on behalf of the parties, ensuring accurate and timely lodgment.