What to do in the event of a title dispute

There's no time in the house-buying process that an experienced, professional conveyancer is more needed than if a title dispute arises. One of the most important roles of a conveyancer might be searching to make sure that your dream property is all above board, but they also lend a helping hand when it comes to resolving disputes.

What's in a property title?

The title deed to a property can be listed with either a local government or state government. Sometimes it might even be under the federal system. For this reason, the Australia three-tiered government system makes conveyancing work just that much more complex. One of the first jobs a conveyancer will do is run a title and property search to make sure that no other parties have a claim on the property, and that the vendor has the right to sell the property in the first place.

Unfortunately, sometimes this search can turn up some surprises. If the property is partly owned by someone else, then it's possible new contracts will have to be drawn up, or the sale might not even be able to go ahead. For single properties, it's not as common to come across title disputes, but for others, such as "off the plan" buying or strata schemes, disputes are much more common. For instance, in many strata properties, ground floor shops may not be included in the strata, but be treated separately. Or perhaps the top three floors might be part of a different strata title than the first four floors.

Each Strata title must have an attached document that lists any number of agreements relating to the ownership and management of the building. This could include which parts of the building are owned by who, as well as who is responsible for the management of the building, and the use and maintenance of any part of the building (such as access, the storage and collection of garbage, holding regular meeting of the management committee and all record keeping of those meetings, safety and security measures, control of noise levels, the prohibition or regulation of trading activities, service contracts, and an architectural code to preserve the appearance of the building). It's easy to see how the negotiation of a strata property can more easily lead to a title dispute during the purchasing stage.

How can you resolve property disputes?

The first thing to do is make sure you have professional representation. A solicitor who does conveyancing work or a certified practising conveyancer will act on your behalf to negotiate a deal that meets your needs and requirements. They will also ensure that you are fully aware of your rights, especially the cooling-off period that most contracts will include. This cooling- off period will allow either party to back out of the contract for up to five days after the contract has been signed (incurring a fee of 0.25% of the property price). The Australian Institute of Conveyancers can offer advice on finding representation.

In most cases, solicitors and conveyancers are able to negotiate their way through the dispute, but if not, it is advisable that where title disputes are concerned, unless a satisfactory outcome can be reached, another property should be looked into. When it comes to putting your name of the title of such a valuable investment, you want to know it's iron clad.