I am often asked about the standard nature of conveyancing matters and why should a person use a solicitor instead of a conveyancing company and what is the difference between the two.
I look at the old adage that one can always seek a cheaper price but does that always come with a better or wider service. Lets talk apples with apples. I am purchasing a property worth $500,000.00 the State Government charge me $25,660.00 stamp duty tax, then there are bank fees, agency fees (if applicable), land tax, insurance and other costs which pale into insignificance when one considers that if the transfer of that title to that work is not done correctly the whole transaction becomes a nightmare. Consider the case of the Royal Melbourne Golf Club that purchased a parcel of land only to find that they paid for the wrong block. Consider the case of a purchaser who buys a block of a plan of subdivision not yet registered and the block changes shape because the council require a portion of the land. Consider a purchase of land that does not have any road frontage on the title but the property looks different.
Then of course you might just need to get some advice about the mortgage documents and guarantees provided by your family or you might just need some advice on the terms and conditions of the business security you are providing to assist with the purchase. A good lawyer friend of mine said that a client of his complained that he was being over serviced because the Lawyer attended a creditors meeting that was adjourned and his services were then not required. However if the meeting had gone ahead the client would have lost his entitlement to the whole of his outstanding debt.
Most of us have household insurance for the building and the contents. There are many in the community that do not have that cover and when their house burns down they seek compensation from others. It could be the State Government or a Government agency or it could just be the community at large. What if you buy a two lot subdivision and the whole building is not insured for the bbenefit of the body corporate.
So why would I use a Lawyer for what I would class as the most important investment I will make in my lifetime? The answer is to make certain that I am protected in every way. If my Lawyer makes a mistake I am covered, If my lawyer steals my money I am covered, If I fail to get the right advice and the transaction turns upside down I am covered.
So what am I talking about and how important is this. I can get a conveyancer do the job for a price and that conveyancer will do what I have agreed to pay for and if I want advice about my mortgage or my guarantee I will have to get a Lawyer in any event. My conveyancer will change me $300.00 and my Lawyer may charge me $1,500.00. I know I do not do my own plumbing or electrical work at home I am cleaver enough to understand that a registered/licensed person who is well qualified and can guarantee the work is my choice.
So why do I consider that I should use a cut price conveyancer for my most important transaction. I am sorry to say that I can see no reason to answer that question in a positive way. The costs of a property transaction are the costs; stamp duty, the State Government love you, registration fees on the transfer and the mortgage, your loan fees from the bank and other institutions and then if all works well a cheap conveyancer. I am a cynic at the best of times when I get involved in discussion about professions and what is charged, but we always get what we pay for. I love my accountant because he does a great job, he is a professional I am looking to pay his firm a fair industry based price for good work. When we act for people in property that is how we would like to be known - doing a good job for a fair price. I work in the city and my firm distinguishes itself by how we treat our clients in being accessible, charging a fair price and delivering good service. I do use our law clerks under my supervision and this is how we are able to make the system work. I urge everyone to consider the significance of the transaction and then think about the old peanuts for monkey rule. If you are happy with how you do business and have the peace of mind that is all that really counts.
My name is Michael Coldham. I am a Partner at Anderson Rice Lawyers and you can contact me on 03 9672 2666 or email at mrc@andrice.com.au
