What exactly is electronic conveyancing and what are its benefits?
Conveyancing is the process through which a property is legally transferred from one person to another. In Australia, the owner of the property is required to be registered as the rightful owner of the property with the relevant state government land department. The reason for doing this is usually very simple. Being the registered owner usually means you legally own the property and no one can try and take it away from you. This simply means that no one else is entitled to claiming the ownership of your property at all.
The process of one becoming the “registered” owner is usually quite complicated and one will spend a lot of time trying to get this process through. This is why it is advisable to hire a property conveyancer or a solicitor to handle this issue for you. Their main role is ensuring that this transfer of ownership goes smoothly and effectively. With the availability of the national eConveyancing scheme, the consumer has been saved a lot of hustle and bustle.
We are all aware that real estate transactions often involve a lot of paperwork. Contracts alone will end up taking hundreds of pages and each contract needs to be provided in two copies. This in itself leads to one spending huge chunks of money from scanning, printing, filing hassle and archiving these documents.
The good thing is that these days homeowners and investors can avoid all this tiresome paperwork through electronic conveyancing. All we can do is be grateful for the digital technology that has made this possible. Currently, it is possible to complete certain real estate documents with less paperwork.
Electronic conveyancing simply describes the process used by people in the real estate which is done on an electronic platform made available by (PEXA) which is an acronym meaning property exchange Australia Limited (PEXA). In this sort of a transaction where all the stakeholders are involved intensively and they include the homebuyers, investors or the person representing them, the financiers and conveyancers who all transact in an electronic workplace.
It is worth noting that this electronic conveyancing basically covers the entire preparation process, the process of execution part and finally the property registration and that’s just about it.
What is the process involved in electronic conveyancing?
There is a very important part of the electronic conveyancing process and that is the client authorization. A client is required to specifically bring forth a written authorization which will, in turn, allow the conveyancer or the practitioner to effectively use the platform electronically. There is another form that is prescribed that is usually available to serve this purpose.
Through this awesome client authorization document, the clients empower the conveyancer to handle any signatories required on their behalf. Some additional tasks the client can also authorize are the lodgment of documents covering the transfer for legislation, the financial settlement of the conveyance and other activities required to be completed for the transaction to go through effectively.
Something worth noting is the client’s signature, is usually done digitally through the use of something known as a digital certificate. This certificate usually is required to be a practitioner who has all the legal requirements and ought to be appointed by the subscriber administrator right before he or she can be in a position to sign the electronic documents on behalf of his client.
This means that those clients who use the electronic conveyancing will be freed from the hassle of signing Land Titles office forms. These forms will rather be signed by the client’s conveyancer which will make the processing of documents quick and effective. However, there is a document that the client will be required to provide for the transaction to go through and that is the client authorization.
What a single electronic conveyancing system means.
This is a big one. A single national electronic conveyancing system will be able to allow electronic settlement of property transactions, an online payment which is inclusive of tax and duty charges, and electronic lodgment of instruments with land registry easily and effectively.
This national system ideally means that whether you purchase a property in Brisbane, Sydney, Melbourne or any other part of Australia. You will only be required to use online systems to lodge and exchange all the required documents which will include contracts and certificates which you will need to purchase your new home.
Under the current system, every territory or state has its own distinct property conveyancing system which has its unique procedures and processes. It ensures the tiresome paperwork that was being used before is eliminated ensuring that no time is wasted and the hustle is reduced significantly.
The major benefit of electronic conveyancing systems is that it saves people money. The national eConveyancing systems normally mean one will be able to save a huge chunk of money by spending less than what you could have using the other manual method. You will also save the transaction cost and the conveyancing fees will be way lower and affordable. Transaction costs such as bank cheques will also be low and affordable.
This move has been initiated by officials from the national conveyancing office whose aims were to develop a system that was to solve all the issues that were affecting the real estate sector. This is because almost every Australian is involved in property transactions be it commercial or residential at one point in their lives. With the national electronic conveyancing system (NECS) in place, financial institutions, conveyancers, mortgage processors, legal practitioners and many other players involved in the process of conveyancing will be able to have easy access to the NECS online which has an electronic workspace provided for each property transaction.
Solicitors and real estate investors are finding their work very easy through the electronic conveyancing system. Modernity and technology have become an everyday part of Australia’s onward move towards development. The electronic conveyancing system has greatly favored the real estate sector and its market has continued to blossom year after year. Australians trust the electronic conveyancing system as it does not disappoint. It makes a complicated situation look easy. People can exchange property ownership without going through any difficulties.Read More
If buying a house in NSW has been your dream then count yourself lucky because although buying a house can be a daunting task, it is also one of the most important long term decisions that you can make for happiness in your life. It is a big commitment and that is why this guide is there to help you settle in your dream home. Read on and find out.
Buying a home in NSW can be done in two ways:-
To be eligible to buy a property through an auction you have to first register and then be the highest bidder. However, it is also good to involve your solicitor or conveyancer to help you out before bidding in case there are unfair terms. You need to evaluate the strata reports, pest reports, and other relevant reports to ensure you are well set before the auction. Ensure you are well equipped financially with pre-approvals when attending the auction because you might be lucky enough to win the bid.
Purchasing a home through a private Treaty involves a direct seller. They normally quote prices but you can negotiate for a more favorable price. Once you have agreed, then you will activate the contract by signing and making a deposit of around 10%. Normally, here in NSW, there is usually a cooling period of approximately 5 days.
What you need to know when buying a house.
You need to organize your finances before you decide to purchase a home. This involves speaking to your financial advisor to give you some lead on how you will handle the task before you. It is also good to speak to your financial institutions and see how much you can borrow depending on your payment capabilities. The cost of buying a house depends on the amount of deposit that you will make. There are stamp duty and other conveyancing fees and legal. Therefore, identify the total cost involved so that it can give you a good platform to prepare your finances.
Inspection of the property
Once you are well equipped financially you need to ensure you find time to inspect the property, irrespective of whether it was found in the newspaper or online. You need to consider the precise location because NSW is a big state with lots of regions so you should be very particular when it comes to location. Determine the kind of property also in terms of the design of the property. It could be a townhouse or an apartment. You need to consider such options. Inspection can be tedious if you decide to do it alone. So you should involve a NSW real estate agent or other professions to help you in obtaining building inspections, home warranty reports, community title inspection reports, and structural engineer reports. This helps you to identify if there are any issues with the property before you purchase.
Submit your offer
After doing the necessary research and identifying a suitable property and you are about to close the deal by placing your offer. Some people might perceive it as a tedious task but it is pretty simple. You need to request the agent to give you a copy of the contract that permits the property to be sold. This is one of the most important legal documents which you will be required to give it to your solicitor to make a review. This ensures that the property has no pending cases that may hinder it from being sold. Once your solicitor gives you a go-ahead that the contract for sale is in order then you are free to submit your order.
In NSW you can submit it via a written document or verbal, though it is better to put things in writing to make it more legitimate. During such a time, some agents might permit you to leave a deposit but it is not a guarantee that the property will be sold to you. If they get any other potential buyers during this stage then your money will be refunded or a chance to make a higher offer.
Processing of legal documents.
Processing legal documents is very important once your offer has been accepted. This is the time you will require handy support from your solicitor or conveyancer who has been certified by the legal authorities and they have been licensed by the NSW fair trading. They should also have indemnity insurance that protects you in case any mistake occurs during the process. Irrespective of whether you engage a solicitor or a conveyancer they should be able to arrange the change of title, assets and review the sales contract, make arrangements on payments and represent you during the settlement process.
Negotiation and placing deposits
The solicitor will represent you during this process because here in NSW the purchase process is determined by the exchange of contracts where you and seller will receive a copy. You are expected to sign before it is exchanged. At this point, you should be ready to pay at least a 10% deposit of the total price. In case a new agreement arises as a result of negotiation then it should be reflected on the contract.
Additionally, there is a 5 -day cooling period which allows either party to withdraw. However, if you choose to withdraw through a written notice then you will have to pay the seller 0.25%of the total price agreed for the property.
If you choose to proceed with the process you will generally have 4-8 weeks to finalize on payment and prepare other pending legal documents unless other terms are agreed on such as a delayed or speed settlement On the settlement day, your solicitor and the legal representative will convene to make an official exchange of cheques and transfer of property.
It is during this time that you should count yourself a new owner of the property and you can prepare to settle in at any time after that. This process is not that complicated and after reading this guide at least you have seen that the home buying process here in NSW is easy and convenient.Read More
First Home Buyers
Stamp Duty, Concessions and Government Grants
What is FHOGS?
The First Home Owner Grant Scheme (FHOGS) is fully funded by the NSW Government and administered by the Office of State Revenue (OSR).
The Scheme was established to assist first home buyers to purchase their first home by offering a $amount grant.
Eligible first home owners can receive the grant regardless of their income or the area in which they are planning to buy or build. However, there is a cap placed on the value of the home.
To qualify as a first home buyer, you must be purchasing the first home you or your spouse have owned or co-owned in Australia,although there are some exceptions.
You must also move into the property within 12 months, and live there for at least six continuous months.
You must be:
- an Australian citizen or a permanent resident of Australia
- at least 18 years old.