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What is conveyancing?
April, 2008 
Back to Property Law FAQ's
 
Conveyancing is the process of formally transferring the ownership or control of property from a seller to a buyer. It includes mortgages, charges, leases and the passing of various other interests in property.

This process, like any sale, requires the creation of an agreement. In this case, a 'contract for the sale of land', the preparation for which forms the basis of the conveyancing process.

The preparation for completion of the contract involves both basic administrative tasks such as the sourcing of documents, and also important acts of 'due diligence' in ensuring that the property investment being considered is indeed a good investment. Such acts of 'due diligence' includes building, and pest inspections that are geared towards ensuring that the property being purchased is not a poor investment.

Across most Australian States the following people can handle conveyances:

• A solicitor;
• A licensed conveyancer; or
• An individual.

In some States (Queensland, Tasmania and ACT) a practising lawyer may only act for a client in a conveyancing matter, but in all other States professionals such as licensed Conveyancers may also carry out conveyancing work.  Conveyancers are usually regulated by a State Government body who have strict rules for their registration and training.

Costs

The fees that are paid to a lawyer or licensed conveyancer for the completion of this process are called 'disbursements'.  A licensed conveyancer or lawyer will also charge a general service fee for the services.  In some States this is capped at a maximum amount, though the amount will vary greatly.

Professional indemnity insurance

Both lawyers and licensed conveyancers are required to hold professional indemnity insurance.  Basically, this insurance allows a person aggrieved by the negligent work of such a professional to collect remuneration or compensation.  This fact is an important peace of mind for a buyer or seller if something should go wrong.

While it is also possible to conduct a conveyance yourself, before doing so it is important to understand the benefits of using a property law specialist covered by indemnity insurance.  For more information read the FAQ, 'Do I Really Need a Lawyer?'

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