At Hunter Legal & Conveyancing, we understand that the conveyancing process for a property purchase in Victoria can be both overwhelming and stressful. We are here to support you at every stage of the journey.
Below, we outline the process from start to finish, so you always know what to expect during your property transaction:
Steps of the Conveyancing Process for a Property Purchase in Victoria
1. Offer and Acceptance
The first step in purchasing a property is to make an offer through the real estate agent. Once the seller accepts your offer, the real estate agent will provide our office with the contact details of the Vendor’s legal representative so that we can request a copy of the Contract & Vendor’s Statement (Section 32 Statement).
At this time, we recommend obtaining Pest and Building Reports. If you are purchasing a strata property, it’s also advisable to get a Strata Report. Please inform your conveyancer if you would like us to arrange these reports on your behalf.
2. Contract Review
The Vendor’s legal representative is responsible for supplying a complete copy of the Contract and associated disclosure documents. Once received, we will review before reaching out to schedule a meeting with you to discuss the Contract together and address any requests for changes or concerns you may have.
During this meeting, you can sign the Contract; however, signing does not mean you are legally bound at this stage.
If you are securing a home loan and have not yet done so, this is the time to obtain formal finance approval. We will communicate with your broker or lender to ensure that all requirements are met promptly.
3. Deposit
Unless stated otherwise, a deposit of 10% of the purchase price is typically required. If you need a reduced deposit, please let your conveyancer know.
Alternatively, you can use a Deposit Bond, which is an insurance guarantee that will cover the 10% deposit if you default. We can help you obtain a Deposit Bond, so feel free to ask your conveyancer for more information.
4. Cooling-Off Period
As a purchaser, you have the option to exercise your right to a cooling-off period, which grants you three business days starting from the business day after the purchaser signs the Contract.
If you opt for a cooling-off period and decide to withdraw during this period, $100 or 0.2% of the purchase price (whichever is greater) will be deducted from your deposit.
Alternatively, if all pre-exchange requirements are met before exchange, the Purchaser can opt to waive their cooling-off rights however this must be done in writing.
5. Contract Exchange
Once you are in a position to progress the transaction, you will authorise us to submit the Contract for exchange.
The Vendor’s legal representative will handle the exchange of Contracts. During this process, the Contracts are compared for consistency, and the date is noted on the Contract. At this point, the Contract becomes legally binding.
6. Stamp Duty
Stamp duty is generally payable on the day of settlement, however, a purchaser has up to 30 days after settlement to pay, but cannot get title to the property until the stamp duty is paid.
There may be certain exemptions available to you dependent on your circumstances, but we will discuss these with you.
7. Preparing for Settlement
After the exchange, we will conduct property enquiries in order to prepare a statement of adjustments for your settlement.
We will coordinate a date and time for settlement with all parties involved and provide you with a statement detailing the funds required to complete the transaction.
During this time you will also be required to complete a Digital Duties Form through State Revenue Victoria to confirm the details of the transaction for stamp duty and land tax purposes.
8. Settlement
The settlement of your property will take place on PEXA, an electronic settlement platform that simplifies the process. No more trips to the bank for cheques; PEXA ensures a fast, safe, and secure transfer of Title.
9. Document Registration
During the settlement, the Certificate of Title will be transferred from the Vendor’s name to yours.
If you have any further questions about the conveyancing process for purchasing in Victoria, please do not hesitate to contact us at 1300 224 828, or you can click this link to take you to our contact form.
