Hi guys,
I need an advice on the settlement procedure when selling a house.
My solicitor asked me to sign the ‘Transfer of Land’ BEFORE the actual settlement day.
I have not been paid for the house yet so I’m not comfortable signing the document.
Is this normal to sign the transfer of land document in advance?
Do I need some kind of terms and conditions written in the form at all?Thanks for any advice.
Cheers.
Hi rinji
Why don’t you ask your solicitor the same questions and more so you can educate yourself? That is their job. You are paying them big money so try to get the most out of it.
Cheers
AndrewsuperAndrew | Property Analyser and Finder Tool
https://property-analyser.com.auHi Andrew,
I have asked my solicitor already.
He doesn’t really deal with me directly. His assistant told me that it’d be safe to do so because the bank won’t discharge the mortgage unless it’s fully paid. However, as this is my first time selling a house, I’d like to get more information from people who have experiences selling properties.In addition to that, the assistant of the solicitor has made a mistake before so I’d prefer to get some second opinions too.
Thanks.
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This reply was modified 9 years, 12 months ago by
rinji.
Standard practice. It is not handed over to the purchases until the cheques are received.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Normal procedure.
The incoming mortgagee are going to want to sight a unsigned copy prior to settlement.
Wouldn’t worry unless you intend to turn up at settlement and hand it over in exchange for the Bank cheques.
As this is not likely and is why you engaged a Solicitor sign it now to make settlement booking easier for all concerned.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Thanks for the replies. I really appreciate your help.
I just have one more question regarding this procedure.
I was told by a friend that usually the seller signs the form first than hand it over to the buyer’s solicitor.
Then, the buyer signs it and gives it back to the seller’s solicitor on the settlement day.
However, in my case, it’s the other way around.
The buyer has signed it already so once I sign it, it will be an effective complete form.
Did my friend give me a wrong information? What is the standard procedure?Sounds like your friend might be detailing queensland. The form s not effective until it is handed to the land titles office with the title deed
Might help if you say what state the property is in.
In NSW Purchaser signs first
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
It’s in VIC.
I don’t know the Victorian process, but if that’s what your solicitor’s telling you to do then don’t waste too much time or energy second guessing it, and don’t take your friend’s advice over the advice of your solicitor. Settlements are very standard procedure for solicitors. Your solicitor also has a duty to look after you here, and you are entitled to rely on his/her advice. If they tell you to do something and it causes you a loss, you can complain to the firm and then the Law Society, and as a last resort you could sue the firm. The solicitor would be liable to compensate you for whatever loss he/she causes you.
In Victoria, the standard procedure is that the purchaser prepares the Transfer of Land and signs it (but doesn’t date it), then sends it to the vendor for signature and safe-keeping until settlement day.
At the settlement and once they have been paid out in full, the vendor will hand the fully signed and dated Transfer back to the purchaser (or the purchaser’s lender, if there is one) for registering at the Land Titles Office.
The introduction of electronic conveyancing later this year will gradually remove the need to exchange the Transfer in this manner; rather, it will all be done in a secure online environment run by PEXA: https://www.pexa.com.au/
It is disappointing that your solicitor or their staff member did not take 60 seconds on the phone to explain this to you: that’s what you’re paying them for.
Good luck!
Kate Ashmor | Ashmor Legal Pty Ltd
http://www.ashmorlegal.com.au
Email MeProperty Lawyer and Opiner
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This reply was modified 9 years, 12 months ago by
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