Having your day in court

A Guide On The Conveyancing Process

4 May 2021 by Beverley Lopez

The truth is, most homeowners get confused when buying their first home. In most cases, they do not understand the property buying process and the various conveyancing terms. Below is an extensive excerpt on the conveyancing process. Ideally, it should help increase your knowledge of the conveyancing process. 

The first stage in buying property is identifying a suitable property. Typically, you will need to attend an open house organised by the seller or their conveyancer. During the open house, you will assess the house to determine if it meets your needs. The event is an opportunity to interview the seller and ask questions about the property. For instance, you should inquire if the property has been renovated, whether the property has easements, the current zoning and strata bylaws, and any defects that the seller would wish to disclose. 

If you are interested in the property, your conveyancer will commence the property negotiation process by giving an initial offer to the seller. Expect each party to give a counteroffer until they agree on a suitable price. At this stage, the two parties will draw up a contract detailing how the property will change hands from the seller to the buyer. The agreement contains the following: 

• An accurate description of the property and what is included in the sale.
• The disclosures that the current owner should make about the property. For instance, it could be the property is located in a flood plain.
• The contingencies of the contract. For example, the buyer should be allowed to request an independent property inspection and valuation. They are free to back out of the deal if the property is in deplorable condition. On the other hand, the seller could be required to conduct renovations.
• The amount of money to be paid as a deposit and when to pay the remaining amount.
• The cooling-off period commences once to sign the contract of sale. Ideally, you are allowed to back out of the agreement before the cooling-off period ends.
• The closing date is the day which you should have paid the seller. You will own the property after this date. If you cannot secure finances, the seller can accept offers from other interested buyers. 

Once you sign the contract of sale, your conveyancer will contact your bank and apply for an appropriate loan. Once the loan is approved, the professional will ensure that the seller has met their contractual obligations before transferring the remaining funds to their account.