A settlement agent is a person who oversees the exchange and payment of money between both parties.
Typically, they look after a client's interests. A good settlement agent will help coordinate multiple deadlines and make sure all parties involved in purchasing or selling a property are aware that the contract has been approved. A conveyancer is responsible for reviewing all legal documents associated with the sale or purchase of a property. They will also work with the settlement agent to ensure that everything outlined in the contract is paid in full.
The main difference between a conveyancer and a settlement agent is that a settlement agent oversees the exchange of money. In contrast, a conveyancer reviews all legal documents. However, both roles are recognised in property law and are important in ensuring that a property transaction goes smoothly.
A licensed conveyancer may be a trained lawyer who specialises in offering conveyancing services. They do not have practical supervision before commencing to offer settlement services. They are not only conversant with the settlement process but have wide or specialised knowledge on other legal aspects related to buying property. Conveyancers must have professional indemnity insurance to cover losses that may arise from their professional advice.Although a settlement agent and a conveyancer have different roles, they often work together. The settlement agent will work with the conveyancer to ensure all payments are made in accordance with the contract. The conveyancer will work with the settlement agent to ensure documents are in order.
No. Only a licensed settlement agent can act as a settlement agent in a property transaction.
If you are unable to find a licensed settlement agent, some alternatives are below.
Buy or sell through a licensed real estate agent who will act as your settlement agent.
Appoint a lawyer to act as your settlement agent.
Both of these conveyancing options involve additional costs, so it is important to factor these into your budget when purchasing or selling a house or a property. It is also important to remember that appointing a lawyer as your settlement agent does not mean they will represent you in the transaction. They will simply be responsible for ensuring all payments are made in accordance with the contract.
The cost of a settlement agent varies. For example, some agencies may charge a flat fee, while others may charge a percentage of the purchase price or sale price. Therefore, it is important to discuss the fees before commencing the settlement process. Generally, some charge between $200 and $800 for their services.
The cost of the settlement agent is usually paid by the buyer and the seller equally.
The cost of a conveyancer will vary depending on the agency you use and the work involved. They offer specialist advice, so their fees are higher. Depending on the conveyancing process, most charge between $500 and $2,000 for their services.
Yes. Both settlement agents and conveyancers are regulated by the state or territory in which they operate. This means that they must meet certain standards and comply with regulations governing their industry. For instance, in the Australian Capital Territory, conveyancing work can only be undertaken by a licensed solicitor, whether you are an individual or a law firm.
If you have a complaint about your settlement agent or conveyancer, you should first try to resolve the issue with them directly. If this is not possible, you can contact the relevant state or territory regulator to make a complaint. You can find more information about the regulations governing settlement agents and conveyancers on the website of your state or territory regulator.
To manage the payment of all money due at property settlements
To notify other parties such as the seller, financier, or real estate agents if there are any changes to the contract of sale
To help prepare required documents during the buying or selling process
To assist with making decisions about your finances where necessary
Working with a conveyancer or lawyer in the sale or purchase of a property can make your experience stress free
To check that the contract of sale is complete and correct before it is submitted for stamping by NSW Land Titles Registry, Registrar General's Office, or Geographical Names Board. This ensures that you will not lose out on money because of mistakes in documents already stamped by these offices. It also means you can be confident you are complying with government conveyancing requirements for buying or selling property, such as stamp duty.
A conveyancer is handy to obtain and review Government notices, legal obligations, and other required documentation, such as statutory declarations and certificates of title insurance. A licensed conveyancer will quickly solve any legal issues that may come up in the process.
They handle legal issues like obtaining the documents needed to register a caveat on your property. A caveat is a written warning placed against the issue of an official document such as a transfer or lease, giving details of any charges affecting that document that may have been registered against your land by another party, e.g., mortgages, leases, etc.
They will submit all paperwork on your behalf prior to settlement with NSW Land Titles Registry (if in New South Wales), Registrar General's Office, or appropriate authority and pay any government fees (stamps). This ensures you will not miss out on money because of delays in processing necessary documents after they have been stamped.
They attend settlement on your behalf, ensuring all money and documentation has been exchanged and that the property has been transferred into your name and provide a final report to you after settlement detailing all financial transactions involved in the sale or purchase of your property. This can help with future tax planning or other financial decisions. For more information on the work of a conveyancer, take a look at the NSW Department of Fair Trading. Check if any legalities apply to your area.