Conveyancing refers to the sale of real estate from a vendor (seller) to a purchaser (buyer).
Conveyancing can also refer to the process under which a mortgagor (usually a property purchaser) gives a mortgage to a mortgagee (usually a bank or other lender).
The general process
Contracts come into existence
This is when the sale agreement becomes binding. A 10% deposit is usually paid.
Settlement and completion
The balance of purchase money us paid and title transfers to the purchaser.
Title document registered
The land registration details are changed to show the purchaser as the owner.
In some ways the process of applying for a construction loan is much the same as for a standard mortgage. Your lender will want to see proof of your income such as pay slips or a contract of employment as well as bank or investment statements showing evidence of savings. These all show the lender that you have the financial capacity and personal discipline to repay the loan.
The way contracts come into existence
There are subtle but important differences between the manner in which contracts come into existence in each State and Territory.
In most jurisdictions, the real estate agent usually conducts the exchange and the negotiations leading to the exchange. However, in NSW and the ACT solicitors/conveyancers are often significantly involved.
Accordingly, in NSW and the ACT there can be much more haggling about the deal after the real estate agent declares a property “sold” and before a binding legal agreement is created.