Although most Australians have purchased or sold properties, they don't always understand the conveyancing process. This predisposes them to make mistakes that could expose them to losses or legal issues in future. Nevertheless, this should not be a concern if you read this guide explaining the conveyancing process. 

The conveyancing process commences when you decide to buy or sell a property. The conveyancer's first task is to conduct due diligence on the property. Some sellers forego this process since they presume they understand their property history. However, it is not always the case. For instance, your fencing contractor could have encroached on your neighbour's property when installing your fence. A conveyancer is best placed to reveal such information. Ideally, the professional examines land records to determine the features of the property. For instance, they assess whether local utility companies have easements that allow them to install utilities on your property. Besides, the conveyancer commissions an inspection to determine the structure's safety. The information gathered during due diligence helps determine the property's pricing and marketing. Moreover, this information is included in the disclosure clause in the contract of sale. This way, a buyer cannot claim that you acted in bad faith. 

The second stage in the conveyancing process is drawing the contract of sale. In most cases, the seller's conveyancer drafts this agreement and negotiates the conditions with the buying party. Typically, the contract of sale details the property exchange process. For example, the buyer might want adequate time to gather finances. Moreover, they might need to inspect the property before paying for the property. On the other hand, the seller might want the buyer to provide a mortgage pre-approval letter and pay a deposit. The contract also contains a termination clause. For example, the parties could terminate the agreement if the buyer does not make payments before the closing date. The contract could also be declared void if the seller failed to disclose significant property issues. For instance, the seller might have flouted the zoning regulations. 

As a buyer, your conveyancer helps you with the mortgage application process. The professional examines your financial situation and explores the various mortgage options. For example, the professional could recommend a bridging finance loan if you have an outstanding mortgage on your current property. Conversely, they could recommend a fixed-rate loan if they presume the interest rates will increase in future. Your conveyancer also negotiates the loan rates and conditions with the lenders. For instance, they could ask the lender to consider a holiday period where you make interest-only payments. 

Contact a professional for more information about conveyancing.