August 8, 2017

The Dangers of DIY Conveyancing

When you sit down and really think about it, you probably buy and sell your home about every 10 to 15 years, if that.

If you are a property investor then you might buy and sell houses more frequently.

So when it comes to conveyancing (buying your new home or an investment property or selling properties), do you engage a lawyer to provide you with a professional services or do you do things yourself?

We all know the risk associated with self-diagnosis and self-medication. Doctors train for many years to achieve their professional qualifications and undergo continuing training to keep up to date with changes to the delivery of medical services.

Lawyers likewise undergo many years of training and continuing training to keep up to date with the law and modern trends in their areas of expertise.

Let’s say you are a fully training and competent motor mechanic – would you go to an accountant to fix your car? The obvious answer is no, because your training, years of experience, availability of tools of trade and expertise makes you as a motor mechanic the most appropriate person to fix someone’s car.

And so it goes for a lawyer or a doctor.

So what are the other reasons you would engage a lawyer for a property transaction:

  • Legal fees for property matters are as competitive and cost effective as they have ever been.
  • Lawyers who practice in property matters handle many property transactions on a daily basis – so they become experts in property matters.
  • Lawyers deal with banks, finance brokers and other lawyers – they know from experience what has to be done and how to deal with problems as they arise.

So what are some of the reasons why you SHOULD NOT DO YOUR OWN PROPERTY TRANSACTION:

  • Are you really able to interpret the results of searches?
  • Will you do the necessary searches?
  • Are you really able to deal/negotiate with banks or financial institutions?
  • What will you do if the lawyer acting for the other party wants to use PEXA?
  • What is PEXA I hear you say.
  • A simple mistake in calculating an adjustable item [rates etc] can cost you dearly.
  • Do you really want the stress of meeting deadlines and the consequences of a possible breach of the contract terms?
  • And the list can go on, and on and on………………………………..

Overall your legal costs in a property matter are only a very small percentage of the overall cost.

If you are a property investor then your legal fees are a part of the acquisition cost and are ultimately tax deductible.

Your call – just consider the down side of acting for yourself, particularly if things go wrong.