Why Choosing a Cheap Conveyancer over a conveyancing lawyer Can End Up Costing You More

Everyone is looking for ways to reduce costs. But when it comes to buying or selling property, low-cost should not be a deciding factor for who will undertake one of the biggest financial decisions of your life.

Conveyancing is often thought as an easy service that can be done cheaply. And it can be tempting to choose the lowest cost option. However, conveyancing is not just paperwork. It is a legal process that carries big financial risks. The quality of advice and service you receive can have a significant impact on the outcome of your transaction.

In many cases, what appears to be a saving upfront can lead to far greater costs down the track.

Low Cost but Higher Risk 

Conveyancing is the transaction. It is not legal advice. Lawyers can provide the conveyancing transaction with the legal advice.

A conveyancer undertakes the steps in the settlement process, but they cannot provide you with legal advice. Put simply, they may be low cost, but you are at higher risk.

Without having an experienced property lawyer undertaking your conveyancing, you do not receive detailed legal explanations and advice around crucial things such as;

·         whether a contract should or could be negotiated;

·         what special conditions mean and the risk or liability these conditions place on you;

·         what special conditions should be added to protect you;

·         what your rights and obligations are to adhere to the Contract conditions;

·         how to respond to unexpected issues during the transaction;

·         what information must be disclosed in your Vendor Statement to avoid risk of claims against you for non-disclosure;

·         what restrictions are placed on the property;

·         and the list goes on.

Without this guidance, you can be at risk of losing more than you realise.

The Difference Between Price and Value

Low-cost conveyancing services often operate on high volume transactions. This means less time spent on you. Less time reviewing your contract and vendor statement, less time taken to identify risks, and limited ability to provide tailored advice to you on your sale or purchase.

Property transactions are rarely “one size fits all.” Each contract, title, and property comes with its own set of considerations. Missing even a small detail early on can have lasting consequences that can cost you a lot more later on.

Contract Review: More Than a Quick Check 

Whether you are buying or selling, one of the most important stages of any property transaction is the contract review.

 Hidden Property Risks 

Not all issues with a property are immediately obvious. Proper legal understanding of property law and property sales and purchases can assist in identifying things such as easements affecting how you can use the land, zoning restrictions that limit future plans, restrictive covenants that restrict what you can do with the property, whether an Owners Corporation imposes any unusual obligations or outstanding notices or compliance issues with the property, alongside unfavourable or high risk conditions placed in the Contract.

If you are not aware or do not have an understanding of these hidden risks, signing a Contract means that any issues become your responsibility after settlement. This means more cost to you.

Fixing Problems Later Is Always More Expensive

One of the most common situations we see is clients seeking advice after they have already signed a contract. At that point, your ability to renegotiate is limited, your legal obligations are already in place, and it takes more work to try to resolve issues which means further cost to you. A small cost at the start can quickly be outweighed by the cost of resolving problems later.

A Smarter Approach to Conveyancing

Conveyancing should not be viewed as a simple service that should not cost much. It is a legal service that plays a critical role in protecting you.

Taking the time to obtain thorough legal advice before signing a contract can help you identify and manage risks early, avoid unexpected costs and proceed with greater certainty and confidence in knowing either exactly what you are purchasing or knowing your sale documents are prepared thoroughly and completely, leaving no risk for a purchaser to make a claim against you.

Case Studies

Case Study #1

Client A was buying a property and relied on a conveyancer who told them the contract was fine to sign. Unsure, Client A sought a Contract review from Wollerman Shacklock Lawyers.

We found serious issues with the Contract. Client A believed they were purchasing a house and land package. However, the contract did not require the vendor to complete construction. Instead, it placed responsibility on Client A to obtain permits, undertake the build and fix defects for work undertaken by the vendor.

Result: Had Client A signed the Contract, Client A would have paid for a completed house and land package, but have to then pay for the completion works incurring significant additional costs and risks! Following our advice, they chose not to proceed, potentially saving hundreds of thousands of dollars.

Case Study #2

Client B entered an unconditional contract to purchase a property and engaged Wollerman Shacklock Lawyers to undertake the conveyancing. We identified that the Vendor Statement was incomplete, outdated, and non-compliant with the Sale of Land Act 1962 (Vic), meaning the client could not make a fully informed decision and had the right to end the Contract.

Despite the vendor’s conveyancer insisting the contract was valid and continued threatening our client with loss of their deposit, we advised Client B of their legal rights and the vendor’s disclosure obligations. The client chose not to proceed without full information.

After continued correspondence with the Vendor’s Conveyancer, they hesitantly provided additional documents, which revealed undisclosed defective building works that the Vendor was aware of. We worked our magic and not surprisingly, the vendor immediately ceased the allegations and threats to our client and promptly returned the deposit and ended the contract without further word.

Result: Client B did not lose their deposit as the Conveyancer threatened they would and they did not purchase a property with costly defects, saving thousands of dollars.

Final Thoughts

While a cheaper quote may be appealing, it’s important to consider what is and what isn’t included in that service. Will a conveyancer provide you with a full service? When it comes to buying or selling property, the real cost is not always the fee you pay upfront, but the risks you carry if something is missed. Ensuring your conveyancing is handled with care, attention, and expertise can ultimately save you far more than it costs.

At Wollerman Shacklock Lawyers we have an experienced team of conveyancers, including one of few Law Institute of Victoria Accredited Property Law Specialists in the whole of Victoria overseeing your matter so that you can be sure nothing like this can go wrong. If you need assistance with buying or selling, contact our friendly tea