Conveyancing Process

Buying a property in Western Australia? Interested in owning property in WA? Whatever stage you’re at, it’s a good idea to understand the conveyancing process in WA. There are critical differences between conveyancing in WA and conveyancing in other Australian states and territories.

How conveyancing works in WA

Here’s the key stages of the conveyancing process in WA – in other words, here’s what you need to know before buying property in Western Australia.

1. Contract Review and Making an Offer

When you make an offer for a property in WA and it’s accepted by the seller, a binding contract is formed. The terms will be detailed in the standard residential sales contract which consists of two parts: a Contract for Sale by Offer & Acceptance and a Joint Form of General Conditions. These contracts are created by the real estate agent involved with the transaction. Although the same standard contract format is used for most residential property sales, various stipulations can be added, such as nominating a date for settlement or making the offer subject to finance being approved.

You can also make your contract subject to a pest inspection or structural defect report. Because of these possible variations, you should always have your contract reviewed before making an offer. You need to be completely happy with the terms of the offer and acceptance document (which will constitute a binding contract on acceptance) before you actually make an offer.

2.Finance Approval

If you’re planning to make a cash offer, this step doesn’t apply, but if you’re applying for finance to buy a property in WA, the next stage is to seek approval from your lender. You should also make sure that your lender is ready to transfer the funds at settlement. Agents in WA use PEXA to facilitate the funds transfer process – as settlement is completed electronically with PEXA, it eliminates many issues that could hold up the process. In fact, it’s now compulsory in WA, for all property transactions to be completed electronically – unless it’s physically impossible.

3. Pre-Settlement

If your finance is all in order, your settlement/conveyancing agent should now make enquiries with the Water Corporation, Office of State Revenue, local shire and strata company (if applicable). These enquiries are made to find out the status of the current property owner’s accounts and to obtain up-to-date information for all rates and fees that are payable on the property in the future.  If there are any overdue accounts, these should be paid by the settlement agents at settlement to clear any debt and ensure the buyer is not liable in the future.

Around 5 – 7 days prior to settlement, you should also inspect the property again, to make sure everything is still in the same condition as when you made your offer. If any issues were noted during the initial inspection and it was agreed that the seller would take care of them before settlement, now is the time to check they’ve all been addressed.

Your settlement agent should be in contact with your lender at this point to make sure they’re ready for settlement. If you’re paying in cash, you’ll now be asked to deposit the balance of the agreed sale price into your settlement agent’s account. Note – this should be a trust account, to ensure your funds are safe until settlement has been completed.

Important – always use the Pexa Key App to obtain the secure bank account details. Please do not reply to emails as they’re not a secure form of communication.

4. Property Inspection

Before settlement on a house in Perth, or anywhere else in WA, you should inspect the property thoroughly, or have it inspected by a qualified professional, to make sure it’s structurally sound and pest free. You should also make sure all fixtures and fittings are in good condition and, if not, decide what you would like to do about any issues you discover. Alternatively, you may choose to make an offer on the property that’s conditional on the issues you find being addressed by the current owner prior to settlement.

5. Settlement

This is the point, as in all states and territories, all documentation and money is exchanged and ownership of the property passes from the seller to the buyer. When buying a house in WA, it’s normal practice for your settlement agent to attend the settlement meeting on the Pexa platform, and to inform you in writing once everything has been completed.

6. Post-Settlement

At this stage, you should receive a full statement of account from your settlement agent, the keys to your new property and any outstanding paperwork such as a copy of the Certificate of Title with your name on it. If you’re planning to use the property as your main residence, it’s time to take care of change of address forms and contact the local utility companies to open new accounts. Kidman Conveyancing can assist you with arranging your utilities using the “Fast Connect” app.

These are the usual stages of the conveyancing process when purchasing a property in WA. However, each situation is unique and if a specific property transaction is likely to differ from this process in any way, your settlement agent should make you aware of this in advance.

Important Differences to Note When Buying a House in WA

There are several important differences to the conveyancing process in WA which out-of-state buyers should know about before they make an offer on a property in the state.

No Mandatory Seller Disclosure Statement

Unlike in most states, where sellers are required to provide specific documents (such as a recent title search, registered plan, council certificate and drainage diagrams in NSW), sellers in WA have no such obligations.

No Cooling Off Period
If you make an offer in QLD or NSW that’s accepted by the buyer, you have a cooling off period of 5 business days, during which time you may cancel the transaction without penalty. In VIC there is a similar cooling off period of 3 business days. In WA, however, there’s no such cooling off period.

If you decide to make your offer conditional on finance approval or on certain issues with the property being addressed before ownership changes hands, you must stipulate these conditions in the offer and acceptance document.

The Offer & Acceptance Documents Form the Contract of Sale
In Western Australia, the documents that are signed when an offer is made with the real estate agent constitute a binding contract. This is important to bear in mind because you won’t be able to change the terms of the sale agreement after your offer has been accepted. Any special considerations or conditions you would like to form a part of the sale agreement must be noted in the documentation that’s completed at the offer stage.

When you buy a house in WA, it’s a good idea to make your offer conditional on all utilities – plumbing, electrical and gas – being in full working order at the appointed settlement date. This avoids you having to move into a property without essential utilities.

Buying a house in WA isn’t any more complicated or risky than buying a house elsewhere in Australia as long as you’re fully aware of the differences in the conveyancing process. If, for example, you know that sellers are not obliged to disclose specific documentation about their properties, you can exercise due diligence before making an offer. If you’re aware an offer will become a binding contract on acceptance, you can include specific conditions in your offer document to avoid any misunderstanding.

Professional Assistance When Buying a House in WA

Whether you’re a local buyer or from out-of-state and you’re looking at potential investment properties in WA, the easiest way to ensure your property transaction is completed seamlessly is to engage the services of a professional settlement agent. As a fully licensed and experienced settlement agent, Kidman Conveyancing can provide you with the assistance you need at competitive rates.

If you’d like details of the services we provide to buyers and sellers, or to discuss your requirements, please use our contact form to send us a message.