How Long Should Conveyancing Take in NSW?
Conveyancing — the legal process of transferring ownership of a property from one person to another is key in any real estate transaction. But, whether you’re buying or selling, one question you’ll want to know is, how long should conveyancing take?
While there is no fixed timeline, understanding the typical duration and the factors that can impact it is crucial for both sides of the process.
Factors Affecting How Long House Conveyancing Takes
The conveyancing process begins for most people after they’ve made an offer or accepted an offer on a property and they engage the services of a conveyancer or solicitor. It ends with the legal transfer of ownership of the property.
However, there are factors which can slow down proceedings, including:
Property or Title Type
The complexity of the property or its title can often impact the conveyancing timeline. For example, is it a house with a standard Torrens title, or is the property part of a Community or Strata scheme? Rural properties can also often require additional searches or considerations.
Financial Commitments
Securing finance is a crucial step in the property transaction for a buyer. Any delays in obtaining the finance or the release of the funds could impact the overall time frame of the conveyancing period.
Pre-Purchase Inspections
A buyer’s conveyancer will arrange building and pest inspections before the purchase is finalised. Any issues that may be raised from these will need to be addressed, which can further delay the conveyancing process.
Strata Reports
When a property is part of a Strata scheme, obtaining the reports that detail the by-laws and the financials of the scheme are essential. Delays in obtaining all the relevant information could hold up settlement.
Legal Checks and Searches
Title searches, zoning searches and local council checks are conducted during the conveyancing process. Any issues identified in these searches can impact how long property conveyancing takes.
Negotiations and Amendments to the Contract of Sale
Often negotiations between the buyer and the seller regarding the Contract of Sale terms, or any amendments to the contract, will delay proceedings.
When buying a property at auction, any contract amendments are agreed before your offer has been accepted — with you legally bound to sign and exchange contracts on the very same day, once the auction has finished. (Any necessary changes to the contract can be negotiated before the day of auction if needed).
Third Parties
In some property transactions, there may be third parties involved, such as local councils or government bodies. This can add complexity and time to the conveyancing process.
Pre-Settlement Inspection Issues
All buyers are entitled to make one last check on the house prior to settlement. This is to ensure the property’s condition hasn’t changed since the last viewing, or to make sure issues noted have been rectified.
If repairs haven’t been addressed, or the condition of the building has deteriorated — thus requiring action from the seller — it could lead to a delay until matters are corrected.
Settlement Date
While the settlement date is agreed upon exchanging contracts and noted on the front page of the Contract of Sale, delays in settlement can occur, adding time to the whole conveyancing process. This can often be down to issues with finance or legal documentation.
Conversely, in certain circumstances, the conveyancing process can potentially be shorter than the average conveyancing time, including:
No Financials
If neither party has to rely on funding from banks, the timeline can be reduced. For example, no loan for the buyer and no existing mortgage for the vendor. If it’s a straightforward transaction where searches and checks can be performed quickly, there is no reason why a conveyancer shouldn’t be able to complete in a much shorter period.
Transferring Property to Family
Other instances where the conveyancing process can be much quicker is when a property is being gifted to a family member. As in, transferring the title in the case of a marriage or even selling the property to a family member.
How Long Does Conveyancing Usually Take?
Following exchange of contracts, the average time for house conveyancing in NSW is between 6 to 8 weeks. This allows enough time for your conveyancer to undertake necessary searches, make sure all the paperwork is in order and liaise with financial bodies to organise settlement.
Yet, although 42 days may be the general time frame, this isn’t set in stone.
Conveyancing — How Long Does It Take? A Typical Time Frame in NSW
While the exact duration of each conveyancing phase can vary, from start (pre-contract stage) to finish (settlement) it can be anywhere from 8 to 12 weeks, but could be longer for more complex transactions.
The complete conveyancing process can be broken down into four key stages:
- Pre-Contract — After an offer has been accepted this will involve the buyer’s conveyancer reviewing the Contract of Sale and explaining the terms to their client. Any amendments to the contract by either party can be negotiated at this stage. In a straightforward transaction, this can usually take anywhere from 2 to 5 business days.
- Exchange of Contracts — Once both parties have agreed upon the terms of the contract, the contracts will be signed and exchanged with a deposit being paid by the buyer. With the advent of e-conveyancing, this can all be performed electronically and completed within one day. (There will be a 5-day cooling off period after exchange of contracts unless buying at auction).
- Settlement Period/Post Contract — Typically 42 days in NSW, this period allows for a conveyancer to conduct legal checks and searches, building and pest inspections, obtain any necessary reports and address any issues that may arise.
- Settlement Day — The date when the balance of the purchase price is paid and legal ownership of the property is transferred. A conveyancer will be able to use the PEXA online property exchange network to lodge documents with the Land Registry Services and complete financial transactions electronically on the same day.
How Long Does Conveyancing Usually Take —Top Tips for Streamlining Settlement
Although some delays in conveyancing may be unavoidable, there are several steps both buyers and sellers can take to ensure a smooth property transaction — and beat or keep on track with the average conveyancing time:
Use an Experienced Conveyancer
Property searches and due diligence are an important part of any property transaction to identify any potential issues or risks. Delays can occur if complications arise or further investigations are needed. Using a proactive conveyancer who is experienced in conducting these searches can help minimise delays.
Be Prepared
Gathering all the necessary documentation for the conveyancing process can take time. Keep on top of your paperwork and swiftly action any requests from your conveyancer to keep the process moving forward.
Get Your Finances in Order — Fast!
If you require finance to buy, approval can often take between 14 to 21 days. Hence, sitting on your application form could have serious consequences. Your lender will most likely need to carry out a valuation, and your personal finances will have a bearing on how long it takes to receive formal approval.
Communicate Effectively
It’s good to talk, and this applies during the conveyancing process. Keep the lines of communication open with your conveyancer — inform them ASAP of any changes, updates or issues you have. And, if you’re unsure of something — ask sooner rather than later.
Likewise, your legal team should keep you regularly informed on the progress of your sale or purchase.
Furthermore, if at any point you feel that the conveyancing process seems to be taking longer than anticipated, contact your conveyancer to discuss your concerns.
Create a Final Inspection Checklist
When making your final inspection, don’t go empty-handed. Alongside the Contract of Sale, take a property checklist, so you don’t miss anything. Your conveyancer will be able to arrange this for you. And, should you find any areas of concern, get in touch with your legal team immediately.
Your Countdown to Settlement With Smarter Conveyancing
At Smarter Conveyancing, we appreciate how exciting it can be to buy a new home — sometimes you just can’t wait to get the keys to the front door and move in, especially with first homes. But, the conveyancing process is an essential part of the property transaction to protect both interests in the property.
In NSW, buying or selling a house can take several weeks to complete — depending on your individual situation.
However, by being more prepared, communicating effectively with all parties and engaging an experienced professional conveyancer — you can keep on track, or even fast-track through to settlement.
If you want to know how long should conveyancing take? — contact us for a chat and we’ll give you a more accurate estimate based on your circumstances.