Conveyancing is a fancy term for the buying and selling of real estate. You may not have known that because it’s not a term that’s bandied about often. The actual meaning of conveyancing is the legal transfer of property from one party to another.
For first-time homebuyers, knowing exactly what’s involved in the purchase and sale of real estate could go a long way to allaying some of your fears and making the process more enjoyable.
The Offer and Paperwork Processing
Getting your offer accepted is the first step in the legal process of conveyancing. It puts you one step closer to actually owning the home. At this point, your agent and lawyer will step in to handle what happens next. The contract outlines all purchase details and your lawyer will begin to prepare conveyance documents, which will complete the transaction. Lawyers and conveyancers will make sure all documents are complete and accurate. This is crucial to ensure the purchase is completed on time and goes smoothly.
Your lawyer will ensure that these things are seen to on your behalf:
- Title searches
- Property taxes
- Instructions regarding the mortgage
- Instructions for the conveyancer
Statement of Adjustments
A statement of adjustments will be prepared. This important document indicates the purchase price, credits the deposit made on the home, and pro-rates any prepaid items like property taxes. It is usually the seller’s lawyer who prepares this. If you’re the buyer, your lawyer will review the statement to make sure all items that should be adjusted, are. Property tax is the item most commonly adjusted. If the seller paid more taxes than he is responsible for, the purchaser must reimburse him for any overpayment.
At the Lawyer
When purchasers meet with their lawyers, they will bring a certified cheque or bank draft with them for the balance of the purchase price, along with identification and any other documents the lawyer might need to see.
Once all the paperwork has been signed at your lawyer’s office, the lawyers on both ends will put all the purchase puzzle pieces together—mortgage, money and agent commissions. At this point, you’re really close to crossing the threshold of your new home. You will just need to take possession of your new property on your closing date. You’ll get a title document sent to you indicating that the property is officially yours.