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Residential Conveyancing

Conveyancing is the area of property law that deals with the transfer of the legal title in real estate between sellers and buyers. Buying and selling property is often one of the biggest financial transactions a person will make, yet the conveyancing process usually moves quickly providing no room for error. The complexity of a conveyancing transaction is often under-estimated.

Conveyancing requires an understanding property and contract law, mortgages, covenants, easements, titling, tenancies (ownership) and local council regulations and zoning.

Signing a contract to buy or sell property creates binding obligations between the parties – the penalties for breach of contract can be significant so it is important to understand the legal implications. Professional guidance is important to ensure that the necessary due diligence is carried out and the parties are aware of their respective legal obligations as seller and buyer.

Most sellers will appoint a real estate agent to sell their property on their behalf. A real estate agent can undertake many tasks such as attract prospective buyers and organise property inspections.

Buying property – Northern Territory contract of sale of land

Once you have found a property that you are interested in buying, you should contact the real estate agent, conveyancer or solicitor, who will prepare the contract which will include details such as:

  • the street address and legal property title details
  • the length of time between signing and completion of the contract
  • what’s included or specifically excluded from the sale
  • special conditions specific to the particular property

It is always wise to seek legal advice before signing a contract. You should send a draft contract and disclosure material to your lawyer to ensure that all information contained is correct and meets your needs. You should also arrange for any inspections and have finance in place before signing anything.

If the contract needs amending for your particular circumstances, your lawyer may be able to negotiate and add special clauses to the contract. Some examples of additional clauses may include:

  • that the purchase will be dependent on the sale of your existing property
  • that the purchase will be dependent on formal finance approval
  • that the property is not subject to flooding and the seller has obtained and complied with all necessary statutory approvals

Exchanging contracts

When exchanging contracts, two copies of the contract are prepared, signed and exchanged. The buyer and seller will each receive a copy of the contact. The contract is not binding until the copies are exchanged.

Cooling-off period

The Northern Territory provides buyers of residential property a cooling-off period of four business days starting from the date the buyer or their lawyer receives a copy of the signed contract by both parties. The cooling-off period however can be waived or amended by agreement between the parties and does not apply in some circumstances, such as when a property is sold at auction.

If the buyer decides not to proceed with the purchase within the four-day period, they must give notice to the vendor and any deposit paid is refunded. The way the notice must be given should be specified in the contract.

After exchange of contracts

There is a set length of time between the contract becoming binding and the contract being settled or completed. During this time a buyer will need to conduct various checks on the property, pay stamp duty, organise insurance and get any loan arrangements in order. The seller of the property will need to make arrangements with their bank to have any mortgage discharged as well as making plans to vacate the property.

Before settlement, adjustments to the purchase price are agreed upon between the parties to cover council rates as well as other costs which may be allowed for in the contract.

At settlement, the buyer must pay the balance of the purchase price, which is usually funded through a financial institution. If the seller has granted a mortgage over the property, this will be released by the lender and the incoming mortgagee (lender) will take a mortgage over the property. The buyer will be registered as the owner on the title, and various government bodies will be informed of the change in ownership.

Selling property by auction

An auction is the public selling of a property where interested buyers ‘bid’ for the property, with the highest price, subject to a reserve, being accepted.

Before the auction starts, the property being sold is usually open for inspection by prospective buyers and the contract should be made available for viewing. The auctioneer should explain the auction rules and give details of the contract conditions such as the deposit required, whether GST is payable and inspection details before bidding commences.

Once a bid has been accepted, the contract becomes instantly binding on the buyer and vendor and generally there is no ‘out’ for the buyer if finance is not approved or pest and building reports are unsatisfactory.

After the auction, contracts are provided to the respective parties’ legal representatives and the transaction proceeds through the usual conveyancing process.

Preparing to buy a property at an auction

Auction sales are designed to be unconditional and immediately legally binding. Bidders must be prepared to sign and exchange contracts on the day of the auction and pay the required deposit stated in the terms of the contracts. Before bidding for a property, potential buyers should be completely satisfied with the property and have finance approval, if required, before placing a bid. Bidders should also have arrangements in place for payment of the deposit.

Before attending the auction, bidders should ensure they arrange valuations, pest and building reports, obtain whatever information is available about the property and investigate anything they believe is required and relevant.

We are conveyancing experts, providing high-quality service and personalised communication throughout the entire conveyancing matter. A licensed conveyancer will conduct your transaction from start to finish, guiding you every step of the way and protecting your interests.

Our clients include first home buyers, investors, property developers, real estate agents and mortgage brokers. We can assist with:

  • Preparation of contracts for sale or purchase of land
  • Contract review
  • Family transfers
  • Transfers due to matrimonial property settlements
  • Commercial retail leases
  • Auction enquiries
  • Assistance with identifying suitable opportunities for finance
  • Assistance with the First Home Owners Grant
  • Mortgages, refinancing property deposit bonds
  • Property developments
  • Property division

If you need any assistance, contact us at [email protected] or call (08) 8947 4400 for expert legal advice.