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What is Conveyancing?Many people thing conveyancing is restricted to the legal transfer of property ownership from one party to another. However, it also involves attaching encumbrances to the property title. An encumbrance is basically an assignment of interest in the property to another party beyond the title holders. A mortgage is the most common, but there are others and they pose potential risks for home buyers. Suppose the seller of a home you want to buy has had renovations done to the home in the past, but did not pay the contractor. That contractor may have a lien against the property for the amount owed. When buying a home, it is essential that you know whether there are encumbrances against the title beyond the mortgages. There are three ways you can determine the exact status of the property title: Hire a licensed conveyancer to search the title history Hire a real estate solicitor to search the title history Buy a “Conveyancing Kit” and do it yourself In Australia, although conveyancers are licensed by the government, they are not considered to be members of the legal profession. So while they are generally cheaper to hire, they cannot offer the same kind of legal advice you get from a real estate solicitor. Considering the potential legal complexities of a real estate transaction, many Australians opt for a solicitor. Remember the adage, “You get what you pay for!” Simply put, you will probably get more “bang for your buck” with a solicitor, since conveyancers deal strictly with title issues. You may have come across the third option, Conveyancing Kits, while searching Internet mortgage sites. They are advertised as a great way to save money and while this may be true short term, they can be costly in the long run. Talk to friends and family who have been through a home purchase and you’ll learn almost everyone pays more than they expected through unanticipated fees and costs. With a solicitor you are far more likely to know what you are getting into; so let the buyer beware when it comes to these kits. |
