When buying or selling a real estate property, there are quite a few formalities and processes that have to be gone through. All of us who have bought or sold a property would understand that it is not the same as buying other movable or immovable properties. There is complicated process called property conveyancing that often gives lot of problems and creates stressful situations to customers. This is mainly because of lack of knowledge and also because there are quite a few legal issues surrounding conveyancing. In this particular article we will try and find out more about property conveyancing and also try to unravel some mysteries surrounding it.
First and foremost we should have a clear understanding about property conveyancing. It is all about going through the entire processes once an in principle decision has been taken to buy or sell a property. It starts with the drawing up of an agreement of sale or purchase. It culminates when the property has been transferred to the buyer in the government record books. It also ends only when the seller has received his due consideration in the form and kin as agreed in the agreement for sale or purchase. Between the starting and ending point there are a number of legal, administrative and compliance related issues that have to be sorted out.
Whenever we talk about property conveyancing we can classify it into three segments, before contract, before completion and after completion. The need for taking help of a property conveyancer could arise because of various reasons. It could be for selling and buying of property. It could be for subdividing land, removing easements and going in for fresh registration. Updating a registration could also call for the services of conveyancers especially when there is a death of the deed owner.
Now coming to various tasks performed by a property conveyancer, the list is quite big. However here are a few important steps that are worth mention. Lodging of legal document is one of the most important tasks of property conveyancers. However, before doing so, he has to prepare the same, have it clarified with the stakeholders and ensure that what is mentioned in the document actually matches on the ground.
He will also have the check on the purity of the property and ensure that it is free from easements, covenants and other such encumbrances. Additionally there are also some crucial roles performed by property valuers and appraisers and in many cases the lawyers also take this job upon themselves.
While there are different types of property valuation, in this article we will talk about BPP or business property valuation. There is no doubt that BPP is not a simple valuation and there are many complexities and difficulties involved in it. One of the biggest challenges is that there is not enough information available as far as the methods of valuation are concerned. Hence the most common method adopted is sales comparison approach. However, when we are valuing personal properties there is no doubt that there is a big availability of information which is not the case with BPP valuation. Hence this certainly is a big challenge that valuers are try to overcome.
There are however valuers who also use the income approach and the cost approach apart from sales comparison method when it comes to valuing business personal properties. However, due to lack of information in most cases the valuation is more subjective rather than being objective and based on hard facts and logic. The biggest problem with the sales comparison approach is that it works on the principles of supply and demand or substitution. Whenever there is a need to buy a BPP the buyers will look at various substitutes and choices that will take into account both quality and quantity. When it comes to domestic real estate there is no problem because all the relevant details are available. These include the full description of the real estate, location, size and so one. However, when it comes to BPP it may not be always possible to get the required information.
Therefore more often than not, the valuers have to use subjectivity to come out the valuation report which may not be very accurate to say the least. A classic example is one where the companies may sell off a property lock stock and barrel including the fixtures and furniture and computers and other such gadgets and equipments. While they may have got a consolidated price for it, it would be virtually impossible to know what the age of the individual items and what is the value that can be assigned to it. Hence, the valuers have no choice but to make a wild guess and come out with a subjective valuation than anything else.
However, there is no doubt that there is a big demand for BPP valuations and the need of the hour is to come up with a property valuation method that is more accurate and is based on figures rather than opinions.
Whenever there is a need to buy or sell a real estate property for domestic, commercial or other official uses, one has to go through a number of processes and steps. These processes are clubbed together and are referred to as property settlement. The processes are not simple and hence most of the customers have to take professional help from experienced and capable property settlement agents and companies. We will over the next few lines try and find out more about the various roles and responsibilities of these service providers.
First and foremost, one has to understand that customers can make use of the services or property settlement agents whether they are buying the property privately or with the help of real estate agents. Quite often real estate agents try and cross sell their property settlement business to customers stating that they are the ones who should be doing the job for the customers. This is not true and as a customer you are free to take the services of other real estate property settlement agent should you feel so.
These professionals can play a very useful role in helping you to buy simple properties with no complications. They can also help you to purchase properties that have been inherited from others or bought from others. The latter will be slightly complicated because the settlement agents will have to go back in time and check the legality of the ownership transfers that may have happened during those time periods.
The main objective of property settlement is to ensure that the entire process of buying and selling happens smoothly, efficiently and within a stipulated time period. One has to understand that there are a number of loose ends that have to be tied only after which the ownership transfer will get reflected in the books of the government authorities. These professionals help in drafting the right buying and sell agreements, help in ensuring that you pay the right stamp duty for such agreements and other such important tasks and functions.
Interacting with the various government departments and engaging in such PRO work could be quite taxing on the customers and hence the role of these settlement professionals is very important and very useful to say the least. Property valuation is also an important task that is performed by property settlement agents. The main objective is to ensure that both the buyers and sellers and buying and selling the property at the fair market value.
It is becoming quite tough even for the well settled conveyancing companies and individuals to move from one level of success to another without trying something new. It is no longer possible to aspire for higher growth trajectories in conveyancing business just by treading down the beaten path. There is a need to have a re-look at the way conveyancing business is being done. This is because of a number of reasons for this. The level of competition is increasing in the conveyancing business. Further, there are new changes in technology that are also impacting the way products and services are bought and sold. There is no doubt that the internet is one such technology that is giving a radical shift to the way business is being done. This is because of some obvious reasons. Time is a big constraint for most of us and therefore we would like to ensure very little wastage of time when it comes to buying products and services. Towards this objective there is no doubt that the internet plays a very big role.
Why the above points are being mentioned is because this should be an eye opener for those who are doing their conveyancing business in their conventional ways and means. It is very important for them to understand the importance of the internet and mobile phone technology and make use of it extensively but in an intelligent manner. Here are a few simple but extremely useful ways and means by which conveyancers can make very effective use of the internet. The smallest step that they can take is to have their own website. This will go in establishing a foothold on the internet.
Once the website has been completed it is important to find out ways and means by which they can attract more number of visitors. Apart from engaging the best of SEO professionals to ensure that your website ranks high in Google and other search engines, you should also find other ways and means to build better relationships and networks. You must understand the power of social media sites like Facebook, Twitter, YouTube and so on. You must take steps to be present in these social media regularly and quite aggressively. They will certain yield you very good returns over a period of time. The next important point is to find more about the growing importance of taking part in various web awards and competitions. They will stand you in good stead as far as better relationships and network building are concerned.
The importance of conveyancing can be best understood only by those who have engaged in buying and selling of real estate properties. Unlike buying or other movable or immovable properties when it comes to real estate buying and selling the process is quite complicated. It is mostly out of bound and understanding for all those retail investors. Hence, there is a continued demand for quality conveyancers. However, as is the case with other businesses, the levels of competition in this business are also increasing by leaps and bounds. Running a conveyancing business successfully can no longer be taken for granted. There should be a continuous effort on the part of the entrepreneurs to find out ways and means by which they can push their business to higher levels of success.
Modern day technology like the internet and the mobile phone with the help of computers has literally changed the way business is done. It also has resulted in tectonic changes in the way customers look for products and services and how they procure. The modern day job and business situation also has a big role to play. Most of us are very short on time and would therefore are looking for products and services to be delivered to our doorsteps. Further we are also willing to seek as much information and knowledge as possible before buying a product or service. Whatever has been mentioned over the past few lines is very much applicable to real estate conveyancing business also. Hence, if you are looking at ways and means to improve your conveyancing business, you must know how effectively use the power and reach of the internet.
Towards this objective the first starting point is to have an own website. This is extremely important because it helps to be unique and different from the others. The website can also be made very interesting and informative which will attract more numbers of visitors many of whom could turn to customers over a period of time. It is also important to use the medium of internet and mobile telephony to offer more value additions to customers. The best way to do so would be to offer online conveyancing facilities. This will go a long way in changing the entire ground rules of conveyancing. It will only be a matter of time before these conveyancing companies are flooded with scores of new prospects. This is because of the convenience factor and time saving factor associated with it.
Hiring the right conveyancer is easier said than done. This is because there are literally dozens of valuers out there in the market place. Therefore separating the grain from the chaff could indeed be a very difficult and challenging task. It is all the more challenging for first time real state buyers and sellers because they do not have the right knowledge or information about the ways and means by which they can identify the right conveyancer. Hence, this article is all about some common tips and suggestions that have to be kept in mind while recruiting or availing the service of conveyancers.
The first point that could help customers to choose the right conveyancers is to have a clear understanding about their roles and responsibilities. While having in depth knowledge might not be possible for ordinary customers, they should have basic understanding about conveyancing. They should have some decent idea about the various professionals whose roles are very important as far as conveyancing is concerned. They should also understand that it is always better to look for conveyancers who offer end to end solution rather than piecemeal approaches.
As a customer you should stay away from conveyancers who outsource a part or the entire conveyancing activity to third party service providers. This will certainly hamper the quality of work that can be expected from these professionals. The next important point that needs to be taken into account is the number of years experience in this field. As a rule of the thumb good conveyancers are those who would have put in at least 10 to 15 years’ service in this area of business. Experience is very important because conveyancing at times is about handling complicated and difficult cases. This is best possible only by those who are vastly experienced in this business.
Being qualified and certified is another important point that has to be taken into account while identifying conveyancers. Getting conveyancing done from uncertified service providers is illegal and will not be able to successfully stand legal scrutiny. It is also very essential that as customers you look for conveyancers who have a good network and also have good relationships with banks, financial institutions and government departments because of obvious reasons.