Buying or selling a house is a complicated process – especially with all the jargon you need to learn. One of the many legal terms you will come across is conveyancing.
In this article, we explain conveyancing, what a conveyancing lawyer does, and when you need one.
What is conveyancing?
Conveyancing is the legal transfer of property ownership from one party to another. This includes the transfer of funds “settlement”, all the relevant legal and administrative work, and communication between the buyer, seller, solicitors, and banks.
What does a conveyancing lawyer do?
When a person decides to buy or sell a house, their conveyancing expert or property lawyer will ensure everything is processed correctly by a conveyancer completing a combination of the following:
- Complete anti-money laundering checks.
- Review the property title.
- Prepare or review a Sale and Purchase Agreement.
- Manage the Sale and Purchase throughout
- Review LIM reports.
- Advice on contract conditions.
- Receive loan instructions.
- Explain all relevant documents to the client(s).
- Receive all settlement funds into your lawyer's trust account.
- Check the property is insured.
- Process settlement.
- Discharge of your mortgage.
- Check the mortgage is registered over the title of the property, to protect the bank.
1. Identify what you're buying
The first stage of the conveyancing process is identifying what you’re buying through the Record of Title. Your conveyancer will review this to determine key facts about the property, including who the legal owners are and whether any easements, covenants, right of way, or other important records apply. You may wish a local authority report (LIM) to be reviewed.
Easements
An easement is an agreement where a landowner agrees to let another party use the property for a specific purpose. For example, a neighbour may run an electricity or water line through the land. For these agreements to be legally binding, they need to be outlined in the Record of Title.
Covenants
Covenants are limits or restrictions on the property owner and any future owners. These restrictions can refer to anything from roofing materials to paint colours and even the number of dwellings on a piece of land. This is common in new subdivisions where developers want to ensure that all properties are cohesive and coordinated.
Right of Way
A Right of Way is a common easement and specifically refers to accessways often seen when a house on a back section uses the side of the property in front as a driveway. The back property might legally own part, or all, of that driveway.
2. Organise the money
Once your conveyancer has arranged all the necessary paperwork, the next step is to ensure all the funds are transferred correctly. Financial steps for the conveyancing process include the following:
- Confirming and managing funding
- Keeping track of guarantors and any relevant paperwork.
- Applying for and monitoring Kiwisaver and other Home-Start grants.
- Receiving/preparing settlements
3. Settlement day
Settlement day is the day the property is officially paid for and handed over to the new owner. Your conveyancer or property lawyer will manage your instructions for settlement to ensure the day runs as seamlessly as possible.
Do I need a conveyancer?
The conveyancing process is complex and there can be serious legal implications if you get it wrong. Having a conveyancer or property lawyer involved, whether you’re buying or selling, is the best way to avoid issues and any expensive surprises.
A conveyancing lawyer will be well-versed in the transaction process and all the necessary hoops to jump through along the way. This will reassure you that everything that needs doing, is being done.
A conveyancer is your key contact for everyone involved, including banks, solicitors, insurers, real estate agents, local authorities, tenants, body corporates, neighbours, and mortgage brokers. Your lawyer will manage all of these variables for you so you won't have to worry about juggling communication or paperwork.
Below, we have outlined when a buyer or seller will need a conveyancer.
Conveyancing for a seller
When you’re selling a house, a conveyancer will make the entire transaction as smooth as possible. They will advise you throughout the process, from making the right legal promises to verifying that all transactions are handled correctly. Depending on your requirements, your conveyancer can provide the following services:
- Review contract conditions.
- Communicate with your real estate agent and purchaser’s solicitor.
- Prepare and sign settlement documentation.
- Arrange a discharge of your mortgage.
- Promise the property will be officially transferred when proof of purchase is received.
- Ensure all mortgages and other encumbrances are repaid on the settlement date from the sale funds received
- Ensure any loans held over the property will be repaid to the seller’s bank after the sale.
Conveyancing for a buyer
If you are buying a house, your property lawyer will ensure the money goes through successfully, and ensure all your promises are kept. As required, a conveyancer will complete the following for you:
- Property title review.
- Anti-money laundering check.
- LIM Report review.
- Post-registration search.
- Transfer, mortgage registration.
- Make legally binding promises to the seller’s lawyer that the money will be deposited into the appropriate account.
- Ensure the money will be received from the bank to make the transaction.
- Promise the seller’s lawyer that the transaction will not be reversed.
Conveyancing NZ
When buying, selling, or refinancing a property, it is imperative to get legal advice early. Halliwells Lawyers, based in Hāwera, Taranaki, offers online conveyancing services through LegalPath. This allows us to provide you with legal expertise no matter where you are.
The benefits of online conveyancing include competitive prices, faster processing times, and a convenient online portal. We will take care of the complexities of your property transaction, allowing you to focus on your next steps.
Halliwell’s lawyers, legal executives, and property professionals have the expertise to handle every aspect of your property transaction. We work on your behalf and look after your best interests. We will keep you informed and be available to answer any questions you may have as the transaction progresses.
If you have questions about the conveyancing process or are ready to get started, use our free online quoting tool, with no strings attached.
