Conveyancing Searches Expose Risks | 5 Red Flags to Spot Fast

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Home > Blog > Conveyancing Searches Expose Risks | 5 Red Flags to Spot Fast
Conveyancing Searches

Buying a home can be one of the most exciting decisions of your life, but also one of the riskiest. What looks like your dream property might be hiding serious legal or structural issues. That’s where conveyancing searches come in. These legal checks can uncover hidden problems that could cost you thousands down the track.

Here are five shocking red flags that conveyancing searches often reveal and that many first-time buyers completely miss.

1. The Property Is in a Flood or Bushfire Zone

It might look peaceful and safe, but your new home could be located in a high-risk area. Conveyancing searches can reveal whether the land sits in a floodplain, bushfire-prone zone, or other hazard areas, something most sellers won’t highlight upfront. Insurance premiums for these properties can be sky-high, and rebuilding after a natural disaster? Even worse.

2. Illegal or Unapproved Structures

That beautiful patio or backyard studio might not be council-approved. Planning and building searches can reveal whether the property includes illegal extensions or renovations. If you buy without checking, you could be forced to remove them at your own expense.

3. Zoning Restrictions That Limit Your Plans

Think you’ll add a granny flat or run a home business? Think again. Zoning and planning conveyancing searches can show whether your intended use of the property is allowed. Many buyers discover after settlement that their dream reno or side hustle isn’t permitted.

4. Outstanding Council or Water Rates

You could inherit someone else’s debt without realising it. Conveyancing searches include checks for unpaid council rates, water bills, or land tax, which can legally transfer to you once the property changes hands. Shocking surprise, right?

5. Contamination or Environmental Risks

From asbestos to toxic soil, contamination searches uncover serious environmental concerns that could make your property uninhabitable,  or dramatically reduce its resale value. These issues aren’t visible during an open inspection but can be revealed in the right searches.

 

For most people, purchasing or selling a property can be a stressful and often confusing process, even if you have done it before. No matter how experienced you are at buying or selling property, it is more than likely you will need to engage the services of a conveyancer (or a property lawyer to undertake the conveyancing process), but what exactly happens during the conveyancing process that makes it nearly impossible for a layperson to carry out themselves?

One of the most important responsibilities of a conveyancer is conducting the conveyancing searches that are relevant to the property in question – whether you are acquiring or offloading the property.

So, what are they, do I really need them, and can I just do it myself? Read on to find out.

Why do searches need to be conducted?

Searches are a way of protecting the buyer and the seller of the property by providing proof that the seller is, in fact, the property’s legal owner, showing that you won’t be stung with any unexpected charges post-settlement and proving that the property can be used as it is intended.

Each state requires different checks to be carried out, with the mandatory checks being standard in nature and only costing a few hundred dollars, which is only a small price to pay providing how much protection they provide the parties with.

In Cairns, for example, you will be required to have the following searches carried out:

Title Search – This indicates who the true owner of the land is, as well as any encumbrances on the land. The title may not be able to be transferred to a new owner if there is a claim against, limitation on or liability against the land, and it may cause a decline in the property’s value.

Land Tax Clearance Certificate – This shows if there is land tax owing on the property. If the Land Clearance Certificate shows that there is land tax payable on the property, it must be paid by the current owner prior to settlement otherwise it will become the new owner’s debt.

Rates Balance Enquiry – This search outline the rates information including what the account balance of the property is at the time of sale.

Special Water Meter Read – To ensure the new owner isn’t stuck with the previous owner’s water and sewerage charges, the Special Water Meter Read provides the current status of any water and sewage accounts linked to the property so they can be cleared.

Contaminated Land & Environmental Management Register Searches -There’s bad news if your proposed acquisition finds itself on either of these registers, as it may affect how you can use the land and, ultimately, whether or not you still want to purchase it.

Department of Main Roads Search – This will inform you of any roads, ports or rail developments proposed or works being resumed by the Department of Main Roads that may affect the property.

Who can carry out these searches?

Technically these searches can be conducted by anyone, however, the vast majority of people engage a conveyancer to carry out this work in the course of their purchase or sale because there are different time limits pertaining to the different searches, they involve a lot of paperwork, further searches may be required and an experienced conveyancer or property lawyer will be able to ascertain quickly and accurately if the searches raise any red flags with regard to the property.

If you are considering buying or selling a property and require assistance with conveyancing, you should speak to a property lawyer who can handle the end-to-end process, from contract review to settlement, for you.