Buying or selling a home is a complex process that involves a multitude of legal, financial, and practical considerations.
With so much at stake, it's essential to have the right professionals on your side to guide you through the process and ensure a successful outcome.
One key question that often arises for buyers and sellers is when they need to engage the services of a lawyer. In this blog, we outline the role of a conveyancing lawyer in the transaction process to clarify when it's necessary to enlist professional support.
The legal process of a property transaction
When a property is sold, it is critical that the transfer of property, known as conveyancing, is handled properly. Conveyancing encompasses the legal and contractual aspects of a property transaction, including property title checks, preparation and review of contracts, anti-money laundering checks, and settlement fund transfers.
Do you need a conveyancing lawyer?
In short, the answer is yes. Whether you are buying or selling a house, a conveyancer will make the process simple and straightforward while also ensuring all legal requirements are met. There are many different conveyancing services but regardless of which you choose it’s required that you engage a professional.
Buying a house
If you are buying a house, a conveyancer will manage the transaction so it is a smooth and seamless experience. Most notably, they will handle the transfer of funds, review the property title, make the necessary promises to the seller’s lawyers, and check all documentation. This can include an anti-money laundering (AML) check, LIM Report review, and post-registration search, for example.
Selling a house
If you are selling a house, your conveyancer will be your primary advisor throughout the entire process. Key tasks of a seller’s conveyancer include making legally-binding promises to any affected parties, ensuring mortgages and other encumbrances are repaid, and taking care of loans held over the property after the sale.
The role of a conveyancing lawyer
When buying or selling a house, your conveyancer takes charge of managing the property transaction process to ensure a smooth and hassle-free experience. Conveyancers can either be a property lawyer or a licensed conveyancer, both of which will use their industry connections and expertise to streamline the process until settlement day. Either way, the key tasks of a conveyancer include the following:
Property title checks
The first step of the conveyancing process is to identify exactly what is included in the property transaction. Whether it be easements, covenants, rights of way or other relevant records, your conveyancer will review the Certificate of Title to make this step as easy as possible.
Sale and Purchase Agreement reviews
Your conveyancer will complete a review of the Sale and Purchase Agreement to ensure it is correct. This gives you peace of mind and safeguards you from any potential legal issues before, during, or after the property transfer. Your conveyancer will liaise with the seller's lawyers to resolve any complications, ensuring your interests are protected.
Communicating with all parties
A conveyancer will handle all communication, liaising with all affected parties such as buyers, sellers, lawyers, lenders, insurance companies, and local authorities. The buyer’s conveyancer will make the necessary promises to the seller's lawyer, such as that the money will be deposited into the appropriate account.
They also work with banks and brokers to secure lending, as well as with councils to ensure that rates and other necessary information are taken care of. In summary, your conveyancer is responsible for facilitating a smooth property transfer process for everyone involved.
Grant applications
If you are planning to use the KiwiSaver HomeStart Grant to buy the property, your conveyancer will guide you through the application process, including eligibility requirements and the necessary forms. They will also liaise with your KiwiSaver provider to ensure that funds are transferred to the appropriate account at the right time.
Land Information Memorandum reports
If you are buying a property, your conveyancer will assist with requesting and reviewing a Land Information Memorandum (LIM) report about the property from the local council. This report provides a summary of all the information currently held by the council. For example, outstanding rates, building consents, resource consents, and anything that may affect the property now or in the future.
The conveyancer will review the report and advise you of any issues that may affect the property and its value. If issues are identified, they can also help you to negotiate how to address them with the seller.
Anti-Money Laundering checks
Property transactions are considered a captured activity under the AML/CFT Act (Anti Money Laundering and Countering Financing of Terrorism Act 2009). This involves verifying the identities of the parties involved and assessing any associated risks. Additionally, if you are purchasing, the conveyancer will request from you an SOW/SOF (Source of Wealth/Source of Funds) showing full disclosure of how you intend to fund your property purchase.
Your conveyancer or property lawyer will assist you with any confusion you have about this process. Your conveyancer is obliged to perform due diligence checks and report any suspicious activity, ensuring compliance with regulations and preventing illegal activities.
Settlement preparation
Once your agreement is unconditional, your conveyancer will deal with either receiving or paying a deposit for the property. Things to consider during this period are a pre-property inspection; packing your possessions and organising movers; advising your insurer of your new address and notifying power or gas service providers and mail redirection.
Settlement day
On settlement day, the conveyancer ensures that all legal and financial obligations are met by both parties. They will review all documentation, check the funds are transferred correctly, and facilitate the exchange of keys. They will also ensure that any outstanding mortgages or loans on the property are paid and that the title is transferred to the new owner.
Online conveyancing services
Before choosing a conveyancing lawyer, take the time to consider which type of conveyancing suits your needs.
While a lawyer comes at a higher price point, an online conveyancing service will provide you with all the key advantages, and access to a property lawyer, at a potentially lower rate. Using an online conveyancing service, like the Halliwells service through LegalPath, will deliver the following benefits:
- A seamless experience
- Reliable expertise
- Transparent progress updates
- Free no-obligation quotes
- Convenience
To find out more about partnering with the team at Halliwells via LegalPath, request a free quote today.
