Conveyancing for seller – what’s involved?

Selling a property involves a structured legal process known as conveyancing. As a seller, it is essential to follow specific steps and ensure all legal requirements are met to guarantee a smooth transfer of ownership. Working closely with your solicitor and bank is crucial to avoiding delays and ensuring that settlement is completed on time.

Step-by-Step Guide to Selling Your Property

1. Discharge the Mortgage
   If your property is mortgaged, the first step is to initiate the discharge of mortgage process. You’ll need to:
   • Complete a discharge form: Most banks offer mortgage discharge forms online, or you can visit your branch to arrange the release of the mortgage.
   • Provide solicitor details: Make sure your bank has your solicitor’s contact information so they can communicate directly and arrange for settlement. Without this, your bank may not be able to speak on your behalf, which could cause delays in the settlement process.

2. Receive Initial Documents from Your Solicitor
   After the sale contract is signed, your solicitor will send you an initial documents pack, which will include:

   • Key contact information for your conveyancing process.
   • Important dates, such as cooling-off periods, finance approval deadlines, and settlement day.
   • Documents to complete and return, such as authorizations for the sale.

   Make sure to carefully review and return any required documents promptly to avoid delays.

3. Cooling-Off Period
   In Queensland, most residential sale contracts are subject to a 5-business-day cooling-off period, during which the buyer can terminate the contract. If they choose to do so, they must pay you a penalty fee of 0.25% of the purchase price. This cooling-off period gives the buyer time to reconsider, and it’s important to be aware that the sale is not final until this period expires.

4. Handling Buyer’s Due Dates and Extensions
   Your solicitor will track all key due dates in the contract, including:
   • Finance approval deadlines
   • Building and pest inspections
   If the buyer requests an extension for any of these conditions, your solicitor will need to contact you to obtain your instructions. Communication during this period is crucial to ensure you can respond promptly to the buyer’s requests.

5. Signing Transfer Documents
   During the conveyancing process, your solicitor will prepare the Transfer of Land documents and send them to you for execution. You must sign these documents in front of a qualified witness, such as a Justice of the Peace, a Solicitor, or a Commissioner for Declarations. This step is essential to legally transfer ownership of the property to the buyer.

6. Settlement Arrangements
   As settlement day approaches, your solicitor will:

   • Coordinate with your bank to confirm that all required mortgage discharge documents have been received.
   • Work with the buyer’s solicitor to ensure all funds and documents are in order for settlement.
   • Calculate settlement adjustments, such as water and council rates, ensuring these expenses are correctly apportioned between you and the buyer.

   Once the bank confirms that they are ready for settlement, your solicitor will book the final settlement appointment with the buyer’s solicitor.

7. Final Settlement
   On settlement day, your solicitor will attend the settlement on your behalf, ensuring that:

   • All payments, including the buyer’s funds, are transferred.
   • Settlement adjustments (for rates, water, etc.) are calculated correctly.
   • The title transfer is completed.

   If you have an outstanding mortgage, your bank will receive the necessary payments, and the remaining funds from the sale will be transferred to you. Any agent commission due will be paid directly from the settlement proceeds via cheque.

8. Post-Settlement
   After settlement is completed, your solicitor will confirm the transfer with you. At this point, you should:

   • Cancel any insurance on the property, as the buyer will now take ownership.
   • Ensure any final utility bills are settled.
   • Update your records to reflect the sale of the property.

   Once settlement has been effected, you no longer have any legal or financial responsibility for the property.

FAQs: Selling Your Property and the Conveyancing Process

1. What is a cooling-off period, and can the buyer terminate the contract?
In Queensland, the cooling-off period allows the buyer to terminate the contract within 5 business days of signing. If they choose to terminate, they must pay a penalty of 0.25% of the purchase price to the seller.

2. What happens if I forget to notify the bank of my solicitor’s details?
If you do not inform your bank of your solicitor’s details, the bank may not be able to communicate with them directly. This can cause delays in the settlement process and potentially lead to penalties or missed settlement dates.

3. What are settlement adjustments?
Settlement adjustments refer to the prorated division of costs, such as council rates, water charges, and body corporate fees, between the seller and the buyer. These adjustments ensure that each party only pays for the period during which they own the property.

4. Can I cancel my property insurance immediately after signing the contract?
No, you should keep your property insurance in place until after settlement has been confirmed. The buyer only takes legal ownership of the property at settlement, so you are responsible for the property until that point.

5. What is the role of my solicitor in the conveyancing process?
Your solicitor will:

• Manage all legal aspects of the sale.
• Communicate with the buyer’s solicitor and your bank.
• Arrange settlement and ensure the correct funds are transferred.
• Ensure that all legal documents are signed and lodged correctly.

Final Thoughts

Selling a property involves careful coordination between you, your solicitor, and your bank. Following the proper steps ensures that all legal obligations are met and that the settlement proceeds without any delays. Engaging an experienced solicitor early in the process is crucial for navigating the conveyancing process smoothly and successfully completing the sale.