Property Conveyancing in the Victoria & NSW
Throughout Australia the overall process of conveyancing is largely similar across states and territories, however there are many smaller details that can differ and unless these are specifically pointed out, they can cause issues whether you are buying or selling. If you are looking to move interstate then the best thing you can do to ensure that you understand everything about how conveyancing works in each particular state, is to speak with experienced and local conveyancing lawyers. Today we will look at the high level issues around this topic, more specifically the difference conveyancing in Victoria compared to New South Wales.
Differences
The reason for the differences in home conveyancing from state to state is that Australia doesn’t have one single set of legislation, which is laid out to govern transaction of property throughout the country. The differences which you’ll find between each state will include stamp duty, builder’s responsibilities, real estate agent governance and contracts amongst others.
NSW Example
NSW conveyancing differs to Victoria conveyancing in a number of ways, here are a few examples.
- Vendor Agreement — In Victoria this is an important document which is legally required and must accompany every contract of sale. In NSW however, this document is not legally binding and only covers zoning and documentation of the property’s service locations and land-use restrictions.
- First Home Buyer Advantages — Victoria offers great benefits for first-time buyers such as an FHOG grant of up to $20,000 on new builds (depending on location and property value) and exemptions on stamp duty (or a discounted rate) for first home buyers purchasing a property with a dutiable value of $750,000 or less. Whereas NSW offers a $10,000 grant for new builds as well as exemptions from stamp duty (or a discounted rate) for purchasing a property that is for $650,000 or less.
- Cooling Off Period — This time is for buyers to back out of a contract of sale, in Victoria they offer 3 business days whereas in NSW they offer 5. In Victoria you can back out of sale with a penalty of 0.2% of the purchase price, whereas in NSW this penalty is slightly higher at 0.25%
These are just some of the differences between the states which is crucial to keep in mind, especially if you are moving between these states in the future. However, as can be seen the overall process of property conveyancing is almost identical besides for a few smaller differences mainly surrounding different values in the first home buyer advantages, stamp duty and cooling off periods.But you will need to be aware of all of these differences, to avoid any nasty surprises later on.
If you are moving interstate the best advice for understanding conveyancing is to seek out the services of a local conveyancer in the state which you are moving to. This can help you to avoid problems which can cost you time and money and it allows for a smooth transition to your new home.
