What Is a Conveyancer in WA? Settlement Agents Explained

Is a settlement agent the same as a conveyancer?

Yes. Settlement agent is the name WA uses for the professional who carries out a property transfer, and Consumer Protection describes the role as a settlement agent (conveyancer). The work matches what a conveyancer does in other states; the difference is that WA licenses it under its own law, the Settlement Agents Act 1981, rather than a conveyancers act.

There are two ways to do settlement work in WA:

• A licensed settlement agent, who holds a licence and a current triennial certificate from Consumer Protection.
• A lawyer with a current practising certificate, who can conduct settlements without a settlement agent licence. Lawyers are overseen by the Legal Practice Board of Western Australia.

What does a settlement agent do in WA?

A settlement agent makes sure every condition of the contract is met and the property, the money and the title change hands correctly. According to Consumer Protection, a typical settlement involves:

• searching the land title and checking any restrictions on the use or transfer of the property
• arranging for restrictions on the title to be removed where required, such as the seller's mortgage
• making enquiries with council and other authorities about rates, water, sewer connection, outstanding orders and building licences
• checking that inspections and special conditions in the contract have been satisfied
• verifying the identity of the people they act for
• preparing the settlement statement and the transfer documents
• collecting transfer duty and fees and paying them to the right agencies
• attending settlement, which now usually happens electronically, and lodging the transfer with Landgate
• notifying the relevant authorities once settlement has happened

The buyer's and seller's settlement agents each do their side of this work. For how the role compares with a conveyancer's job elsewhere, see what a conveyancer does.

Do you need a settlement agent in WA?

Not by law, but almost everyone uses one. Consumer Protection says it is possible for buyers and sellers to conduct their own settlement, but that unless you are a suitably qualified lawyer you should use a licensed settlement agent or a lawyer.

There are practical reasons too. Settlements now run through electronic lodgement networks such as PEXA, and the national rules for those networks are built around professional subscribers: lawyers, licensed conveyancers (which in WA means settlement agents) and lenders. Apart from lenders and government bodies, subscribers must have an ABN, pass character checks and hold professional indemnity and fidelity cover, which rules out most people handling their own sale or purchase.

If you are buying with a home loan, your lender settles electronically alongside your representative, so in practice you will need one. ConveyDirect gives fixed-fee quotes for WA purchases and sales, as it does in every state and territory; see conveyancing in WA.

When should you appoint a settlement agent?

Earlier than most people do. In WA, a sale is usually made on a Contract for Sale of Land or Strata Title by Offer and Acceptance, and the special conditions go into that document before it is signed. Consumer Protection advises buyers to think about choosing a settlement agent when they start looking at properties, so the agent can help draft special conditions such as:

• building and termite inspection reports
• good working order clauses
• pool and bore or reticulation inspections
• repairs you want the seller to carry out before settlement

A settlement agent or lawyer can also tell you the total cost of buying, including transfer duty, so you know your finance and savings will cover it. Sellers benefit from having one lined up before accepting an offer, so the settlement date and conditions can be checked first.

How do you appoint a settlement agent?

WA has a set process for appointing a settlement agent, designed to make fees and conflicts of interest clear before you commit.

1. Check the licence. Confirm the agent is licensed with Consumer Protection using its online licence search. Our guide on how to check a conveyancer's licence covers WA and every other state.
2. Get the written costs disclosure. Before you sign anything, the agent must give you a written quote setting out the maximum they will charge, including fees, commissions and office disbursements. Duty and Landgate fees are paid on top. See settlement agent fees in Perth.
3. Read any disclosure of interest. If the agent has a personal, business or financial link to the deal, such as regular referrals from the selling agent, they must give you a disclosure of interest before you appoint them.
4. Decide whether they may act for both sides. A settlement agent cannot act for the buyer and the seller unless both agree in writing. If you want them to act only for you, delete that option on the form.
5. Sign the appointment form. You sign the Appointment of a Settlement Agent form, which is the contract between you and the agent. The agent signs to accept and gives you a copy.

You can change settlement agents at any time, although the first agent may be entitled to a fee for work already done. If an agent acting for both parties hits a conflict, they must stop acting and ask you to appoint someone else.

How are settlement agents licensed in WA?

Settlement agents are licensed under the Settlement Agents Act 1981 and must follow the Settlement Agents Code of Conduct 2016. Consumer Protection, now a division of the Department of Local Government, Industry Regulation and Safety, administers both. To hold a licence, an individual must be at least 18, of good character, suitably qualified and have sufficient financial resources. Partnerships and companies can also be licensed, with licensed individuals behind them.

Once licensed, a settlement agent must:

• hold a current triennial certificate and complete professional development every year
• keep client money in a trust account that is audited annually
• be insured under the Commissioner's master policy for professional indemnity and fidelity cover
• contribute to the fidelity guarantee arrangements that reimburse people who lose money through a settlement agent's fraud

Pretending to be a licensed settlement agent is an offence carrying heavy penalties. For what the Act requires of agents acting for buyers, see WA Settlement Agents Act obligations for buyers, and for complaints and compensation, see WA Settlement Agents Act consumer protections.

Settlement agent or lawyer: which do you need?

For a standard home purchase or sale, a settlement agent is the usual choice. A lawyer is the better fit when you need legal advice as well as a settlement, because settlement agents are not permitted to give legal advice and must recommend a lawyer when the situation calls for one. That includes disputes with the other party, complex contract terms, deceased estates, family law property settlements and unusual ownership structures. Our comparison of conveyancers and solicitors explains the trade-offs.

Frequently asked questions

This guide is general information, not legal or financial advice. Rules, fees and timeframes change and differ between states, so confirm your own situation with a licensed conveyancer, settlement agent or solicitor.