Many people who are out to acquire a property and have decided to use conveyancing do not understand the risks involved. But if you embark on that deal without a good grasp of the potential problems with the conveyancing process, it may pitch you for blockers. Some of the mistakes buyers or sellers make during conveyancing happen at any stage. Therefore, you should learn to avoid them, which is why we have identified some common problems. In addition, we have also provided some probable solutions. But before we describe what mistakes people often make, let us define conveyancing.
What is Conveyancing?
It is the process by which the legal documents of a property are transferred from the seller to the buyer on a lease or permanent deal. When you are ready to buy your dream home, get a conveyancer to prepare all the necessary paperwork and other documents. You need to instruct your conveyancer to handle all paperwork according to the local authority’s demands. When you get a draft of your property information with the charges you are to pay; you can proceed to close the deal and receive your keys from the seller. In a country like Australia, you will need to secure the services of a conveyancer or a professional solicitor who can help you through the steps.
Mistake 1: Not Instructing your Conveyancer after having an accepted Offer
Apart from the vital pre-planning processes, a crucial step in conveyancing is to give specific instructions to your conveyancer or professional solicitor. This stage comes after you have an accepted offer from the seller. Providing your solicitor with the correct information can help guide them on the legal process to ensure the property transfer proceeds hastier.
On the other hand, transferring the property from the seller to the buyer may be prolonged further if you are unclear about your instructions. Therefore, clarify what you want for your conveyancer to avoid setbacks and delays. Another approach you can take is to get conveyancing quotes from the market ahead of your discussion with your conveyancer.
The purpose is that when the right time comes, your discussion with the conveyancer will not take much time. At the same time, you will already have a solicitor who can get the ball rolling as fast as possible to close the deal. You can also use the quotes to compare the acceptable fees in the market, making your decision much easier.
Mistake 2: Gazumping
The other mistake that homebuyers make is Gazumping. Gazumping refers to the state where a seller accepts a higher offer instead of yours. However, it does not mark the end of your chances because until the final contract is exchanged, the property transactions are not entirely binding on anyone. So, there is no legal backing that you have lost out on the deal. On the other hand, you can match that new buyer’s offer that the seller accepted. Besides, you can negotiate any price, or if you are no longer interested, you can drop the sale.
Mistake 3: Inability for the Buyer and Seller to Agree
Buyers and sellers may not agree to the terms of the contract. In such a case, the solicitor will need to negotiate some other deals for you, and you need to be clear on the level of compromise you are willing to make. On the other hand, if the offer has already been accepted for the property, then the conveyancers of the buyer and the seller can begin the legal conveyancing process. Both parties must agree before the conveyancing process can be completed. Otherwise, either party will need to compromise on whether the seller should lower the price or the buyer should increase the offer.
Mistake 4: Paperwork Issues
Issues with paperwork may be another hiccup in the conveyancing process. This problem may not be detected on time until the final stages, which may cause any delay. Moreover, conveyancing involves many documents and paperwork, which must be duly approved and signed by both the seller and buyer. Therefore, when you get the contracts that the solicitors have verified, ensure you sign them correctly and return them to the professional.
Mistake 5: Issues with the Property
If the inspector detects any fault with the property, it may cause a delay in the conveyancing process. The reason is simple: nobody wants to buy a property that will eventually be a liability because they need to spend money on repairs. However, it is not a problem if such conditions have been duly factored into the property cost before reaching the final stages. Moreover, suppose the property is detected to contain some issues. In that case, the buyer has to decide whether to review the prices, proceed with the purchase or abort the negotiation altogether. At this point, you will need the professional’s advice on the examination results and what you need to do. At the same time, you should see all the possible solutions to ensure you get a good value for your investment.
Mistake 6: Funding Delay
A buyer may also encounter some delay in terms of funding, which may ultimately affect the proceeding of the conveyancing process. While the homebuyer may not foresee this situation, it could impact the outcome. It may also result in a delay in processing your mortgage loan for the property. The way out is to ensure you start processing the funds for the property even before you get an approved offer to save time. Moreover, beginning some of these processes could give you an advantage when dealing with competitive bids from others.
Conclusion
Finally, foreseeing these possible mistakes during conveyancing gives you good preparation for impressive results. For instance, each of these processes requires the hand of a professional to ensure that nothing goes wrong along the way. However, suppose anything goes wrong in relation to any of the descriptions above. In that case, you can be confident of a good result. Take charge of your conveyancing to get the property of your dream in no time by avoiding all these mistakes. Feel free to contact us if you need help with the conveyancing.