Seek legal advice
ASolicitor Jake Robertson takes a client through a contract. He recommends using a solicitor to undertake the conveyacing process. GENTS are warning property hunters to choose their conveyancer carefully as it could be the difference to scoring the keys to your new home.
In the past few months many Cairns agents have noticed deals falling through because buyers are trying to cut costs and using conveyancing clerks, which in some cases haven’t been able to carry out the correct job.
“In the current climate it is hard enough to get a deal together, however this is just the beginning as it is very often more difficult to keep it together,’’ Powe Property agent Lucas Sexton said.
“For example we’re finding up to 90 per cent of contracts require renegotiation on B/P inspections alone, with buyer remorse also a distinct possibility in these uncertain times it is no longer possible for an agent to forget about the buyer once the contract has been signed and expect to have a settlement occur as many are guilty of.
“One of, if not the, single most important aspects of this process is to ensure that all parties involved in a transaction seek professional and competent legal representation to handle conveyancing from the many options in the market place today.
“An example of this recently happened to one of my colleagues who has been dealing with a overseas buyer on a contract. This buyer organised their finance, had it approved by their chosen lender on time, however the conveyancer failed to send the notice that finance had been approved by 5pm on the finance date. The seller then exercised his right to terminate the next morning at 8.30am.
“I simply can’t stress enough how important it is for all involved to seek adequate legal advice when buying or selling as it very often can make or break a deal. Once the contract has been executed the agent is no longer in control.’’
Devenish Law solicitor Jake Robertson said buying and selling property was not as simple as it used to be.
“Conveyancing is becoming more and more complex due to the increasing regulatory burden imposed by government, especially on sellers,’’ he said.
“Conveyancing law is now governed by numerous pieces of legislation, such as Property Agents and Motor Dealers Act, Body Corporate and Community Managers Act, Building Act, Property Law Act and the Land Title Act.
“The sale of a house now incorporates five disclosures. The sale of a unit or townhouse will involve at least seven disclosures.
“Apart from the regulatory burden, the requirements of buyers and sellers of real estate change in line with general market realities.
“ For example, in the current market buyers are often seeking to effectively renegotiate the purchase price after receiving building, pest and pool inspection reports.
“These days, there is no such thing as a “standard” conveyance. There are now many more potential traps and pitfalls to be wary of when you are buying or selling real estate.
“Traditionally, law firms have used conveyancing clerks to undertake the firms’ conveyancing files. However, as conveyancing becomes more complex, the instances of conveyancing clerks unwittingly failing to comply with regulatory requirements, waiving their clients’ rights and even creating termination rights in the other party is on the rise.
“As a result, clients are demanding a greater amount of care and attention to ensure that their contract proceeds smoothly to settlement.
“The best way to ensure the best level of care and attention is to use a firm where solicitors (not conveyancing clerks) undertake the entire conveyancing process.’’