What is Conveyancing?
The Conveyancers Licensing Act 2003 – indicates that “conveyancing work is legal work carried out in connection with any transaction that creates, varies, transfers or extinguishes a legal or equitable interest in any real or personal property”
In simple terms: – Conveyancing is the legal process of transferring ownership of property. It includes necessary checks and searches that ensure that the seller legally owns the property, what the council rates, water rates and or strata levies are, that the property is legally compliant with council regulations and that the sellers ownership is free of encumbrances. Example: caveats (debts owed by the seller) easement, land resumptions etc.
Why are the costs different for buyers and sellers?
When buying a property you have to pay extra costs for searches, inspections,Government Stamp Duty and transfer of ownership fees. The amount of searches and inspections that you are required to do will depend on the property that you are buying and the contract provided by the seller.
Every time property is purchased in New South Wales, stamp duty must be paid to the state Government as a tax upon the purchase. The amount of Stamp Duty you pay is determined by your circumstances, whether or not you are a previous owner of a home or a first home buyer.
The duty is calculated on the dutiable value of the property or which is the higher of the consideration (if any) for the property(which may be money and/or liabilities assumed), and the current market value of the property.
We can determine whether you are eligible for any concessions in stamp duty or to receive the grant. Most people don’t know the criteria of the 1st Home Owners Grant and automatically assume they are not eligible when they really are! If you have only owned an investment property or vacant land, you may still be eligible for the grant. Give us a call on 0432 578 512 to find out more.
If you are aware of the category you fall into, you can calculate the approximate Stamp Duty by referring to the Office of State Revenue Website and using the calculator provided.
Do I need to visit the office during this process?
It is preferred as we are required to verify your identity (VOI) in relation to the transaction however there are other ways of performing VOI and we can discuss these options with you. You are most welcome to arrange an appointment to meet with Sheree. At least one meeting is preferred however, your conveyance can be completed via phone, fax, email and post so long as we have satisfied the VOI requirements in accordance with NSW legislation.
Do I need to seek legal advice before I sign a contract?
Yes, it is preferable that you seek our advice before signing. Sheree can give you legal advice in relation to the standard terms & conditions of the contract as well as any special terms which may have been inserted. Sheree can also advise as to whether any special conditions need to be included for your benefit and protection.
Do I have to pay Land Tax?
Generally you do not have to pay Land Tax on your permanent place of residence. You pay Land Tax on investment properties. Land Tax is a State Tax charge on the land payable by the vendor (seller). For more information regarding Land Tax go to www.osr.gov.au/landtax .
How do I know how much Stamp Duty I will have to pay?
Stamp Duty is payable on the value of the property within three (3) months of the date of the transaction. If you are obtaining finance to assist you with your purchase the Stamp Duty is required to be paid prior to or at the time of settlement to satisfy your financial institutions requirements. Stamp Duty is paid on the purchase price or the value of the property whichever is the higher amount. In order to determine the amount of Stamp Duty payable on your potential purchase visit the website of the Office of State Revenue and use the Stamp Duty Calculator provided to obtain your Stamp Duty amount payable.
Should you have further questions please contact Sheree Hayden Conveyancing.