Novice property and real estate developers do not understand the conveyancing concept. In most cases, they often underrate the need for conveyancers as they conduct property deals. Below is all you need to know about conveyancing and conveyancers. With luck, you will appreciate the benefits of conveyancing in the real estate industry.
What Is Conveyancing?
Conveyancing refers to legal processes involving the purchase, sale, or transfer of real estate. Some conveyancing processes include;
- Land searches to establish current property size, ownership, and the title number. Typically, you compare these details against those in the title to determine the authenticity of the title document.
- Due diligence to determine the property's history and legal status. For instance, who has previously occupied the property? Has the property undergone renovations? Does the property comply with the building code and land tenure regulations?
- Property appraisals to determine its actual value. It helps sellers set the asking price and buyers negotiate the selling price.
- Property inspections to establish defects that make the property unsafe to occupy.
- Negotiations between the buying and selling parties to establish the conditions of sale.
- The transfer of title from the selling to the buying party.
What Are The Benefits Of Conveyancing?
There are two primary benefits of conveyancing. First, it prevents legal issues once you purchase the property. For instance, suppose you bought a property listed as collateral to an existing loan; you risk losing the property if the seller does not clear the loan. Alternatively, a property could have severe structural issues that make it uninhabitable. Once you realise this, you could sue the seller since they acted in bad faith. Although some properties are appealing and structurally sound, the builders could have disregarded the building code. For example, they could have exceeded the permitted number of storeys. A conveyancer can help you identify such issues.
Second, conveyancing prevents pricing disputes between the selling and buying parties. It ensures fairness during the sale. Typically, the contract of sale permits the buyer to conduct property appraisals and inspections to determine whether the purchase guarantees value for their money. As such, they negotiate the property knowing what they are purchasing. For example, they could ask for price cuts if the property has defects that the seller had not declared.
How Do You Choose A Conveyancer?
Choosing a conveyancer is a confusing task for most property investors. It is especially so since they have hundreds of conveyancers to choose from. The secret is to create straightforward criteria detailing the qualities you need in a conveyancer. Typically, the professional should be highly reputable, specialised, certified by professional bodies, and reasonably priced. Moreover, the conveyancer should have excellent people skills and professional liability insurance.
Contact a professional for more information about conveyancing.