The Four Stages of A Conveyancing Transaction – Buyers Part 3 Unconditional

UNCONDITIONAL STAGE – BUYER

INTRODUCTION

There are essentially four stages that cover the breadth of the conveyancing Transaction process:

1. Pre-Contractual;
2. Conditional;
3. Unconditional; and
4. Settlement/Post Settlement.

Each of these stages offers its own risks.

UNCONDITIONAL STAGE

The importance of this stage, which occurs after all contractual conditions have been met but prior to settlement, cannot be understated as there is now a binding unconditional contract in place and failure to settle as provided in the contract will expose you to liability.

There are a number of important activities that you need to consider in this stage:

1. Transfer Documents

Your solicitor will prepare Land Titles Office transfer documents that will the basis for the transfer of the land into your name so it is important that you liaise with any questions raised by them, including those relating to:

• Personal details (including date of birth);
• Contact details after settlement; and
• How you will be holding the land (where there are two or more buyers you will need to advise your solicitor whether you will be holding the land as tenants in common or joint tenants).

2. Stamp Duty Concessions

Your purchase represents a major financial investment by you, whether you are buying for residential or investment purposes, so it is important that you ensure that you are taking advantage of any available concessions that will reduce the amount of stamp duty that you are required to pay.

You should liaise with your solicitor to ensure that they have advised you of available concessions and have supplied the relevant Office of State Revenue forms that you should complete and return to them as soon as possible.

3. Additional Documents/Information

You need to ensure that you have supplied your solicitor with any documents or information that they have requested, these will include:

• Power of Attorneys;
• Trust Deeds; and
• Certified copies of Identification Documents.

If in doubt you should call your solicitor to check that they are not waiting on any documents or information.

4. Sufficient Funds to Settle

You need to ensure that there will be sufficient funds to meet all amounts payable at settlement. Your solicitor will liaise with you on this matter but will need to be able to contact you during this important period.

Your solicitor will usually send you a draft Settlement Statement at least seven days prior to settlement that will set out the total amount payable at a settlement which will include:

• Amount payable to the seller under the contract;
• Adjustments for utilities to ensure that the cost for the current period are correctly allocated between you and the seller;
• Stamp (or Transfer) Duty;
• Search fees (to the extent not already paid into your solicitor’s trust account); and
• Professional Fees (to the extent not already paid into your solicitor’s trust account).

You should review the draft Settlement Statement and advise your solicitor of any changes that you require as soon as possible.

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FUNDS PAYMENT

The amount payable will generally be covered by loan funds and funds that you are contributing.

1. Borrowed Funds

You need to ensure that your financier is aware of the settlement date and that any problems with settling on this date are promptly communicated to your solicitor so that they can discuss the possibility of an extension if this is required.

You should also ensure that you have met any requirements that your financier has advised as a condition of approval.

Your financier may deal directly with your solicitor but most banks and credit unions will require that you have supplied your solicitors contact details to them and authorised them to speak with your solicitor.

It is important that you are aware of the amount of loan funds that will be available at settlement as the loan amount is likely to be reduced by fees for loan application and processing, transfer registration lodgement, and settlement.

1. Funds That You Are Contributing

You need to ensure that you have made arrangements to have these funds available at settlement, either through bank cheques from your account or through transfer to your solicitor’s trust account well prior to settlement.

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