How to Know Whether You Need a Lawyer or a Conveyancer?
Transactions of home ownership, known as conveyancing, is an intricate area of the law. There are certain specific requirements that parties to the transaction need either a conveyancer or lawyer to do on their behalf. Whilst the role of a lawyer and conveyancer can overlap, they are very different.
But how do you know which one you need?
Often, whether you need a lawyer or conveyancer will depend on the complexity of the transaction, whether there is a dispute and the level of service you require.
Role of a Lawyer vs Conveyancer
The key differences between a lawyer and a conveyancer are –
| Lawyer | Conveyancer | |
| Can assist and provide advice when complex legal issues arise | ☒ | ☐ |
| Can provide advice about other legal matters which may affect the conveyance | ☒ | ☐ |
| Can draft complex special conditions and review contracts of sale | ☒ | ☐ |
| Better protection from risk | ☒ | ☐ |
| Access to the Fidelity Fund for you in the event of fraud | ☒ | ☐ |
| Has a greater understanding of overlapping areas of law | ☒ | ☐ |
| Is likely to have a lower set fee | ☐ | ☒ |
| Can affect property transfers | ☒ | ☒ |
Legal Advice and Issues
Property transactions can include very complex and varied legal requirements. A lawyer can provide you with legal advice which a conveyancer cannot. For example, there may be complicated overlap with family law, deceased estates, special conditions or subdivision clauses which you will benefit from having legal advice on prior to proceeding with the transaction.
Even where these more complex issues don’t appear at the start of the transaction, they can develop over time. For example, we frequently deal with breaches of a contract of sale, delays in settlement and what to you can do if you don’t want to proceed with the transaction. In any of these scenarios, a conveyancer would need to refer your matter to a lawyer. This means you need to deal with a new lawyer and again explain the background of the transaction. This will be more costly and time consuming. Engaging a lawyer from the beginning means that these issues can be dealt with as the matter progresses.
Risk Mitigation and Fraud Protection
Lawyers are bound by very strict rules, which require them to act ethically and in your best interests. These rules are for the benefit of their clients.
Lawyers are also required to have insurance, which you may be able to rely on for protection from any errors caused. Engaging a lawyer will also allow you to access the Fidelity Fund for compensation if your property or money has been lost due to dishonesty or fraud.
These stringent rules and back up protections that are in place, provide additional peace of mind when dealing with large deposits and settlement sums.
Knowledge of Legislation and Processes
Lawyers are required by law to maintain at least 10 points of continued professional development each year. This means that a lawyer may be more up to date with case law and property legislation.
Cost
Conveyancers generally offer a cheaper conveyancing fee than lawyers. However, conveyancers are also limited in what they can provide to you through the conveyancing process. They cannot provide legal advice, and generally will refer matters to lawyers where issues fall outside of the agreed contract.
These are matters which you must weight up when deciding whether a lawyer or conveyancer is appropriate for what you need.
If you need assistance with your property matter or conveyancing transaction, contact an experienced lawyer at Taurus Legal Management on (03) 9481 2000 or info@tauruslawyers.com.au.