When you are going through the process of purchasing your new home, an unbelievable array of new terminology will inundate your mental faculties. Words like Non-Conforming loans, variable interest rates, Low Doc loans, and amortization schedule are just a few of the odd terms and phrasings that will be thrown around.
Conveyance or conveyancing is one of those terms which when uttered often conjure up puzzled looks from listeners, however it happens to be the most important part of your home buying steps.
Conveyancing is the act of handling the paperwork for your home purchase. This includes the rights of property, Deed of Trust, and other legal documents which when executed make you the legal owner of the property.
There are several options you can choose from for the Conveyance:
- A solicitor – One who specialises in Real Estate law. If you are an inexperienced buyer or are just not comfortable with taking care of the paperwork yourself, hiring a solicitor is the safest choice to make.
- A Qualified Conveyancing Agent – Someone who is licensed and certified to handle all legal paperwork and documentation for Real Estate transactions. This person is not a Lawyer; however they did have to take courses and training classes in order to become qualified. The next safest choice after solicitor.
- Yourself. If you are very confident in your knowledge and expertise in the completion of the necessary legal paperwork, then this choice will obviously save you the most money.
- Someone who purports to knowing the how to handle all documentation needed. Only make this choice if you are truly certain of the person’s ability and knowledge, otherwise you could find out the legality of your purchase is in question due to improper or incomplete paperwork.
Obviously, if you choose a solicitor you will have the peace of mind that your title work is being handled by professional lawyers, experts in the field of Real Estate law. Plus you will have the ability to take legal recourse should something come up about the authenticity of your home purchase.
The same can almost be said for a qualified Conveyancing Agent, they too must know every aspect of real estate title transfer paperwork in order to properly and correctly handle the transactions. And again, you will have the option of legal recourse should there be any errors.
If you choose to handle your own conveyance, just remember that any documentation completion mistakes or problems are your fault and no one else’s. You have to weigh the cost savings versus the security of legal counsel. If something was handled wrong, even by the clerk’s office, you are out of luck and have no legal action capability.
Choosing the "trusted friend" or "Uncle John" is probably the most vulnerable decision and one that could cost you more money than a solicitor. Verify their statements of expertise before you say ok. There is no harm in that, this is a business transaction and as such you need to protect your interests whenever you are able.
Be sure and look around for the best rates and fees should you choose a solicitor or a Conveyancing Agent, the amounts can vary greatly and some may even charge escalating fees rather than fixed. In other words, they may charge by the document rather than having one fixed rate no matter how much paperwork is involved.
Which route you decide upon for the conveyance of the property rights and title transfer is up to you and your mortgage broker. Your broker can offer good advice and who to contact should you choose a solicitor or a qualified Conveyancing Agent. And possibly look into the quality of your friend or relative who will being handling your paperwork.
Often those unusual words or funny sounding phrase used by real estate agents and lenders are more than just lingo or industry terminology and you need to make a point of understanding what each one is and means to you and your home purchase.
Talk to your mortgage broker, ask questions and take notes whenever a word or phrase is unfamiliar to you. Your broker will take the confusion out of buying a new home.