The Conveyancing Process - A Step by Step Guide

Buying, selling, transferring, or subdividing property isn’t an everyday occurrence for most people. Knowing what to expect from the conveyancing process can feel overwhelming at first. However, with the help of an experienced conveyancer or solicitor who specialises in property, you can rest assured that the process is under control, often requiring very little input from you.

Conveyancing Process Step-by-Step:

The conveyancing process involves several key steps, each designed to protect your interests and ensure the legal transfer of property ownership is handled correctly. Here’s a step-by-step guide to what you can expect.

1. The Contract of Sale

The process begins with the vendor instructing their conveyancer or solicitor to prepare a Contract of Sale.
The vendor should be ready to discuss any specific terms, such as inclusions (items staying with the property) or exclusions (items to be removed).

The terms of a contract can be negotiated before signing. Negotiations usually occur through the real estate agent or directly between the parties if no agent is involved. A conveyancer or solicitor can assist by drafting or reviewing special conditions that protect your interests.

Once the terms are agreed upon, both parties sign the contract, and it is ready for exchange.

2. Exchange of Contract

Once each party has the other’s signed contract, the contracts are considered exchanged and legally binding. The purchaser is usually expected to have paid an initial deposit by this stage.

The deposit typically represents a small sum up to 10% of the purchase price, which lets the vendor and agent know that the purchaser is serious about buying the property.

3. The ‘cooling-off’ Period

After you sign a contract, the cooling-off period comes into effect. This is the period during which either party may still legally back out of the purchase. Purchasers should keep in mind that they may still be required to pay the vendor a small percentage of the deposit if they do cancel the purchase. In Queensland, this can be up to .25% of the purchase price.

If the property was purchased at auction, the cooling-off period will not apply.

4. Building & Pest and Finance

During this period, the purchaser’s solicitor or conveyancer will recommend that a building and pest inspection be carried out to ensure the property is structurally sound and free from major defects, such as live termite activity, water damage, or foundational issues.
These reports help buyers identify potential costly repairs before making a purchase commitment.

At the same time, the purchaser should confirm that their bank loan has received full, unconditional approval.
Relying only on pre-approval is risky, as the bank will need to formally assess the signed contract, property valuation, and the buyer’s updated financial position before releasing funds.

Promptly organising inspections and finance ensures that any problems can be addressed within the relevant contract conditions and avoids delays to settlement.

5. Stamp Duty

Stamp duty, also known as transfer duty, is a one-time tax applicable to property purchases and transfers.

You can calculate how much stamp duty you will need to pay here.

If you’re a first-home buyer, you may be eligible for a stamp duty concession.

A conveyancer or solicitor will take the following steps and may not require any input from either party if the settlement is electronic. Purchasers and/or vendors may be required to sign additional forms, such as the transfer document, if your settlement is a paper-based settlement.

If a solicitor or conveyancer requests that any documents be signed or provided, it is essential to attend to it promptly to keep the process on track in time for settlement.

6. Mortgage Payout Figure

The vendor’s solicitor or conveyancer will work with the bank to determine the amount still owed on any mortgages. A break fee may also be applicable.

7. Final Adjustments

The buyer’s conveyancer or solicitor is responsible for calculating the adjustments of payments such as council rates, water rates, and strata levies up to the settlement date. If there is a tenant in the property, the purchaser’s representative will ensure the rent is up-to-date.

Once completed and agreed upon, these are signed off by the vendor’s solicitor or conveyancer.

Any outstanding monies will be adjusted at the time of settlement and will be paid out of either the vendor’s proceeds or the purchaser’s available funds, depending on which party the adjustments favour.

Conveyancer or solicitor’s fees will normally be paid at settlement too.

8. Contract Settlement

Conveyancers or solicitors will work together to book the settlement and will confirm the date and time with their clients, including any changes to the booking time or date.

It usually takes anywhere from 15 minutes to half an hour for settlement to complete once all of the financials are balanced and signed off.

Once this has occurred, the property has been transferred, and the solicitor or conveyancer will usually inform their respective clients that settlement is complete.

If you are purchasing or selling a property in Cairns, contact Cairns Conveyancing Solicitors today.