What are the risks of DIY Conveyancing?
So you’ve just purchased a new home? Perhaps you’ve sold off an investment property? There are so many expenses that are incurred from buying (and even selling) property, from stamp duty fees, to bank charges, capital gains tax, lenders mortgage insurance (LMI) or even paying a small fortune in commission fees to your real estate agent. All of which are unavoidable expenses, it’s just the cost of doing business in the real estate game.
This all leads us to the temptation of DIY Conveyancing. You may be thinking to yourself, “how hard can it really be to execute a property transfer anyway?” DIY kits are highly accessible online, and at least you can make somewhat of a saving amongst the pile-up of bills.
Before you decide to go down the DIY route, it is really important to consider whether the savings you can make in not paying an experienced professional is worth the very serious (and potentially costly) risk of conducting a self-managed conveyancing job. Here are three important considerations to take into account before throwing yourself into a DIY conveyancing project.
Breach of Contract
Conveyancers are qualified, trained and adept at facilitating property transactions smoothly and successfully. They have experience in dealing with many different circumstances and have gone through the process from start to finish many times before, and have dealt with all kinds of nasty surprises and road bumps. In handling a transfer by yourself with no professional oversight, a simple miscalculation or miscommunication could result in a breach of contract (and some potentially very expensive fines).
Consider the following scenario; a vendor has sold their property as they are intending to move overseas. However, since the vendor is unable to immediately move overseas after the settlement period they have verbally negotiated with the new owners to have the home leased to them for six months post-settlement.
On the date of settlement, the vendors have sought alternative living arrangements and have decided to not proceed with renting the property for the previously arranged six month period. Since the terms were negotiated verbally and not written into the contract the new owners would be stuck with having to find new tenants at very short notice. The lost time looking for new tenants would result in the loss of rental income.
Stress & Pressure
You may have heard of the phrase “the devil is in the details”, and it rings true in conveyancing. A professional conveyancer has the skill and knowledge to execute a wide range of tasks and follow the due process to ensure successful completion. These tasks range from ensuring the special conditions on the sale contract have been met, administrating relevant legal searches, and communicating with the other party throughout the transaction. Conveyancers also offer advice and provide a guiding hand, as they can smooth out unforeseeable issues. For many who are inexperienced in property conveyancing, going through this process by yourself (even if you have done it once before) can be stressful. There are many time sensitive processes that may incur penalties if deadlines are missed. One lapse in judgement or miscalculation can render the money you save in DIY, being absorbed in late fees.
Loss of time
The time cost associated with conducting a DIY conveyancing transaction is an often overlooked part of the process. Even if you complete the transaction perfectly it may take in excess of 10 hours of work including; liaising with the other party involved, processing paperwork or chasing up documents. If your job is paying you an income of $50 per hour, you will have spent over $500 of your time in conveyancing work. Which you could have better spent earning an income, enjoying time with your family or simply relaxing with leisurely activities.
Vicki Philipoff Settlements is Perth’s leading conveyancing and settlement agency and has conducted thousands of settlements for over 23 years. Our team is qualified and are completely up-to-date with the latest developments in legislation, trends and insurance.
If you’re interested in Vicki Philipoff Settlements service offering, get in touch with us today or apply for a free no obligation quote and you can settle with ease.
