Why You Should Engage a Lawyer When Buying or Selling a Property

Here are some key reasons why engaging a lawyer is crucial:

1. Legal Expertise and Advice

• Understanding Contracts: Property transactions involve detailed contracts that outline the rights and obligations of both the buyer and seller. A lawyer can review and explain the terms of the contract, ensuring that you fully understand the legal implications.
• Customizing Contracts: A lawyer can negotiate and amend contract terms to protect your interests, adding or removing clauses as necessary to address your specific situation.

2. Ensuring Compliance with the Law

• Legal Compliance: Property transactions in NSW are governed by various laws, including the Conveyancing Act 1919 and the Real Property Act 1900. A lawyer ensures that the transaction complies with all legal requirements, helping to avoid potential legal disputes.
• Regulatory Requirements: Lawyers ensure that all necessary regulatory requirements are met, such as compliance with council regulations, zoning laws, and building codes.

3. Conducting Due Diligence

• Title Searches: A lawyer conducts searches on the property title to ensure that the seller has the legal right to sell the property and that there are no encumbrances, such as mortgages, easements, or covenants, that could affect your ownership.
• Council and Land Searches: Lawyers also perform searches with local councils to check for any issues like unpaid rates, land use restrictions, or future developments that could impact the property’s value.

4. Managing the Settlement Process

• Coordinating Settlement: The settlement process involves multiple steps, including transferring funds, lodging documents with Land Registry Services, and coordinating with the seller’s representatives. A lawyer manages this process to ensure that everything is completed correctly and on time.
• Preparation of Documents: Lawyers prepare all necessary legal documents for settlement, including transfer documents, discharge of mortgage (if applicable), and adjustments for council rates and water charges.

5. Handling Financial Aspects

• Calculation of Adjustments: A lawyer ensures that financial adjustments, such as for council rates, water rates, and strata levies, are accurately calculated and reflected in the final settlement figures.
• Managing Funds: Lawyers handle the transfer of funds on your behalf, ensuring that payments are made securely and that the transaction is completed without financial discrepancies.

6. Risk Mitigation

• Identifying Risks: A lawyer identifies and advises on potential risks associated with the property transaction, such as disputes over property boundaries, issues with building approvals, or potential claims from third parties.
• Dispute Resolution: If any issues arise during the transaction, a lawyer can represent your interests and help resolve disputes, whether through negotiation, mediation, or, if necessary, legal proceedings.

7. Protection from Unforeseen Issues

• Cooling-Off Periods: In NSW, there is typically a cooling-off period for residential property purchases. A lawyer can advise you on your rights during this period and help you withdraw from the contract if necessary.
• Special Conditions: Lawyers can include special conditions in the contract to protect you, such as making the purchase subject to satisfactory building inspections, finance approval, or other contingencies.

8. Navigating Complex Transactions

• Off-the-Plan Purchases: Buying property off the plan involves specific risks and complexities, such as delays in construction or changes to the property’s final design. A lawyer can guide you through these complexities and ensure that your rights are protected.
• Dealing with Strata Titles: When buying or selling strata properties, there are additional legal considerations, such as understanding the strata by-laws and the financial health of the Owners Corporation. A lawyer ensures these aspects are properly addressed.

9. Ensuring a Smooth Transaction

• Avoiding Delays: A lawyer helps ensure that the transaction progresses smoothly by coordinating with all parties involved, including real estate agents, banks, and the other party’s legal representatives.
• Finalizing the Deal: At settlement, a lawyer ensures that all documents are correctly signed, funds are transferred, and ownership is legally transferred to the buyer.

10. Long-Term Security

• Protection Against Future Claims: By ensuring that all aspects of the transaction are handled correctly, a lawyer helps protect you from future claims or disputes over the property.
• Document Storage: Lawyers often retain copies of key documents, which can be vital if any issues arise in the future or if you need to prove ownership or the terms of the sale.

Conclusion

Engaging a lawyer when buying or selling property in NSW is not just about handling paperwork; it’s about protecting your investment and ensuring that your rights and interests are fully safeguarded throughout the transaction. The complexity of property law and the potential financial and legal risks make having professional legal guidance essential for a smooth and secure property transaction.

For more information, contact:

Michael McHugh BA LLB (Hons)

Accredited Specialist – Property Law

Australian Legal Practitioner