






|
| Conveyancing
Demystified |
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| Both
buyer and seller should become familiar with some of the terms used in the
conveyancing process so they can clearly understand what is going on and
what will apply to them: |
- Disbursements:
Are costs to the seller for such things as the title search and stamp
duty, which are usually additional to the conveyancing fee
- Vendor: Is
the seller who deals with the Purchaser, the buyer.
- Strata title:
You own airspace above the ground, but not the land! For flats and units.
- Company title:
Where apartment owners own shares in a public company, which is different
from strata title.
- Community
title: Torrens title that exists for a section of land that you own
in conjunction with shared ownership of communal facilities, such as
a swimming pool. The common land is included with subdivision.
- Torrens title:
Under Torrens title, each time that a property changes hands the new
owner is registered, as there is a guarantee from the state of ownership.
Any tenant or mortgage interests are also recorded by this method. Torrens
title was introduced in 1858 by Robert Torrens, who got it through the
South Australian parliament, and is a system which replaced the old-fashioned
and slow Common Law Title. Common Law Title, where it still exists,
shows the whole series of past owners.
- Land Tax:
Claimed by a state government on investors and is based on the value
of their property.
- auction contracts,
rate certificates, planning certificates, and vendor's statements are
documents that need to be on hand if you are selling your property at
auction.
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One issue for
some buyers will be what legal arrangements are made with other shared
owners of a property, which could be shared ownership in business or in
a relationship. You can go in as a Tenant in Common, or as a Joint Tenancy.
The whole property goes to the survivor of a Joint Tenancy, which will
override a will. In a Tenancy in Common, a will can be made to inherit
a share to someone else such as your child, so this is often the preferred
and the more flexible arrangement, and the only sensible one for a business
partnership.
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| Of
course this attempt at demystifying the conveyancing process does not constitute
legal advice. It is imperative that you seek some sort of legal advice for
this process, particularly as if you don't, then the mistakes you make will
be at your own liability. For both buyer and seller this whole process of
conveyancing might seem daunting. However it should be kept in mind that
almost always both parties are keen to see a successful exchange of contracts.
So long as all parties are open and honest with each other, there should
be few problems. |
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