So, you’ve found a house you like, but now you’re staring at a Contract of Sale and a Section 32 statement and wondering – who do I turn to for help? That’s where a conveyancer and a solicitor come into play. But what’s the difference between the two, especially when it comes to reviewing these important documents? Let’s break it down.
Conveyancer
First up, a conveyancer is a licensed professional who specialises in property transactions.
In Victoria typically a conveyancer completes a Certificate IV in Property Services (Conveyancing) and holds a Conveyancing License with the Business Licensing Authority (BLA).
Their main role is to help with the legal side of transferring property ownership. They’ll review the Contract of Sale and Section 32 to make sure everythings in order. They will confirm the property details on the title, check for any hidden legal issues, and make sure the seller is actually allowed to sell.
They’re great for straightforward property transactions.
Solicitor
Whereas, a solicitor, on the other hand, is a qualified lawyer with a broader legal background. If there are any complex legal issues, like disputes, unusual clauses that require amending or removing, or additional clauses to be included, a solicitor is your go-to person. They generally can offer more detailed legal advice and represent you in litigation if things get tricky or go pear shaped. Which whilst unlikely can happen.
So if your property purchase involves a more complicated situation, you might prefer to go with a solicitor.
Cost
A conveyancer usually charges a little less than a solicitor. However, it is important to check and confirm the breakdown of fees and what is included in them before you engage someone.
As a guide in Victora a conveyancer might charge around $1500+GST and a solicitor $2000 + GST when you successfully purchase a house.
You need to check if you are unsuccessful at purchasing the property or after the contract review you decide not pursue the property what is the portion you are required to pay. A contract review on its own might be $350 and the balance only paid if you secure the property and settle. For our clients using our recommended solicitors there is no fee unless the property is successfully purchased.
Also check does the fee include disbursements or are they separate. Disbursements might includes Title Searches, Land Transfer Fees, Mortgage Discharge Fees, etc.
Experience
Before engaging a conveyancer or solicitor double check their experience with your type of transaction.
For example, do they have previous experience with the type of property you are purchasing (eg. off the plan, strata, stratum) and the proposed ownership models (joint purchase, tenants in common, SMSF, FHB). This information should give you a good indication if they are the right choice for you.
Whether you choose a conveyancer or a solicitor just make sure you’ve got a professional reviewing documents and is able to provide advice and recommendations prior to making an offer. Contract conditions, clauses and caveats could stop you from purchasing the property or using it the way you desire.
And a good legal representative will make the settlement period and settlement day smooth and easy.