One of the most important parts of the home-buying process is choosing a solicitor or conveyancer to help transfer the home into your name. But what’s the difference between a solicitor and a conveyancer? How do you find one? And what do you do if things start to go wrong?
A good conveyancer can make the home-buying process so much smoother. They can support you through the offer stage, ensure your home doesn’t come with any hidden problems and clarify all the paperwork required for getting the house put in your name.
Solicitors are lawyers that can provide conveyancer services and are legally qualified to practice property law.
Because solicitors are legally qualified to practice law, they are often better equipped to deal with complex sales issues. They have extensive knowledge of property laws and can help if or when things get more complicated than transferring titles from one party to another.
Conveyancers, on the other hand, only specialise in property transactions.
Both conveyancers and solicitors are qualified to prepare the legal paperwork needed for your new home purchase and can offer advice related to the property purchase. Conveyancing — whether done by a lawyer or conveyancer — covers the legal aspects of buying a home and transferring the property from the vendor's name into your own.
Technically, there’s no legal requirement to hire someone for this role. However, conveyancing involves liaising with all parties, reviewing the vendor statement, obtaining a search title and other tasks that are best left to a specialist. After all, if anything goes wrong, the home sale could fall through, or you could discover a nasty surprise after you purchase your home.
The conveyancer's role is quite involved when purchasing your home. They work for you and are looking to ensure that you’re getting the best terms and conditions and that there are no hidden issues you should know about before you sign on the bottom line. Here are some areas your solicitor or conveyancer can help you with:
Sale and purchase agreement: A conveyancer will review your sale and purchase agreement before you sign to ensure it contains standard terms and doesn’t include anything unusual. They also review these documents to ensure they reflect the house's condition and sale accurately.
Record of title: Your conveyancer will do a title search to find out the history of the property. The title includes information about the house's construction and any easements, covenants, or consent notices that come with the property.
LIM report and council files: A LIM is a land information memorandum record that details information on the property. A LIM is crucial because it includes rates details, any building consents granted on the property, and flood, erosion and contamination risks.
Conditions: Most sale and purchase agreements include conditions such as the sale depending on the results of a building report, LIM, and sometimes other documents.
Kiwisaver and grants: If you plan on using your Kiwisaver for a first home deposit, your lawyer or conveyancer can help you withdraw any Kiwisaver funds or apply for Homestart Grants.
Transfer and mortgage documents: Most property deals include mortgage and loan documents you will need to sign to become the property owner. Your lawyer or conveyancer can talk you through these contracts and break down any terminology so that you understand what is required.
Settlement day: Ensure the purchase price ends up in the correct place.
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Conveyancers are cheaper than solicitors, but that doesn’t necessarily mean better. If your house sale is complex, you may want to engage the services of a lawyer to ensure you’re not making a purchase you’ll later regret.
In general, conveyancers are cheaper than solicitors. Fees will vary from person to person, but a conveyancer can cost around $1,000, while a solicitor can cost approximately $2,000.
Don’t skimp on hiring a conveyancer or lawyer. You don’t necessarily want to choose the service with the lowest fees. You want a thorough conveyancer who takes the time to go through all the reports and contracts without missing anything important.
Unlike a real estate agent, who has the interest of the vendor top of mind, a solicitor or conveyancer is working in your best interest. For this reason, it’s essential to work with your conveyancer so that they can get you the best outcome.
Engage your conveyancer early. It’s a good idea to start looking for a conveyancer before you put an offer on a house. Conveyancers can help you with placing your offer. Once your offer is accepted, there’s only a small window to get your paperwork and reports sorted. You’ll want a conveyancer ready to help you as soon as your offer is accepted.
Give your conveyancer copies of all documents. Give copies of all your house-related documents to your conveyancer. This includes any draft agreements, advertising brochures for the home in question, building reports, LIM reports, and council files. The more information they have, the more than can assist you. Make copies of these documents and hold onto the originals yourself.
Come prepared for meetings. If you’re going to meetings with a conveyancer, take a pen and paper, or make sure your phone is charged so you can take down any notes. Conveyancers need to work quickly to get reports and contracts ready within tight deadlines, so they’ll need you to be on top of your game.
Ask questions. Remember, your conveyancer or solicitor is there to help you. You’re also paying them for their services. They are experts in explaining contracts and the significance of any findings in the reports they pull. So if you have a question about anything that comes back on your LIM or title record, just ask.
Tell them your deadlines. Communicate the deadlines for your house sale to your conveyancer as soon as you meet. They’ll be able to help you work to your timeframe.
Don’t be too hasty to take the first referral. If you haven’t found a conveyancer before you put an offer on a home, the selling agent will probably recommend one to you. However, you should know that you don’t have to take their recommendation.
A personal recommendation is often better. Before you put an offer in, ask your friends, family members or colleagues for recommendations. You’re more likely to find a reliable, competitively-priced service this way. While there is nothing wrong with taking the referral from a real estate agent, you only have their word to go off.
Before hiring a conveyancer, always check their credentials. In New Zealand, conveyancers must hold a Diploma in Conveyancing and be registered with the NZ Society of Conveyancers. This national body has strict codes of conduct that they must adhere to.
Most solicitors and conveyancers do a great job. However, it’s important to know your rights if anything goes wrong. If your solicitor or conveyancer didn’t follow your instructions, charged higher fees than expected, or failed to do their job in some way, you should:
Contact your solicitor or conveyancer first. Often these issues can be resolved with a conversation. It’s important to bring the problem up so that your conveyancer can either solve it or refute it.
Dispute resolution. Dispute resolution can happen via the NZ Law Society or the NZ Society of Conveyancers.
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