What you need to know about running a conveyancing business, including rules of conduct and the records you need to keep.
On this page
Key information
Licensing
Laws to follow
Supervising a conveyancing business
Record keeping
Conveyancer audit reports
Discipline and enforcement
Key information
- You need a licence to run a conveyancing business or to be employed to do conveyancer work.
- All conveyancers must follow rules of conduct when carrying on a conveyancing business and exercising functions under a licence.
- Conveyancers are responsible for the proper supervision of conveyancing work conducted under their licence.
- A licensed conveyancer must keep a record of any transaction carried out by the licensee or the licensee's employees.
- Disciplinary action can be taken against licensed conveyancers who commit an offence under the Conveyancers Licensing Act 2003 or Conveyancers Licensing Regulation 2021, including the rules of conduct.
Licensing
You must be licensed to run a conveyancing business, or to be employed to do certain legal work in relation to property transactions, such as:
- the sale or lease of land
- the sale of a business
- the grant of a mortgage or other charge on property.
You can apply for an individual licence or a corporation licence. Go to our conveyancer licences page to find out more.
This licence requirement does not apply to an incorporated legal practice or solicitor corporation, such as a law firm.
Work a conveyancer is not authorised to do
A conveyancer is not authorised to carry out work for the purpose of:
- a non-residential mortgage exceeding $7 million
- commencing or maintaining legal proceedings
- establishing a corporation or varying the memorandum or articles of association of a corporation
- creating, varying or extinguishing a trust
- preparing a testamentary instrument
- giving investment or financial advice
- investing money (other than in a trust account in accordance with Part 5 of the Act).
Although conveyancers cannot give investment or financial advice, they need to be aware of tax requirements relating to conveyancing transactions. Learn more about:
- state tax requirements (for example, transfer duty and surcharge purchaser duty) on the Revenue NSW website
- federal tax requirements on the Australian Taxation Office website.
Professional indemnity insurance
All licensed conveyancers doing conveyancing work must be insured under a policy of professional indemnity insurance as required by section 6 of the Conveyancers Licensing Regulation 2021.
More information on professional indemnity insurance requirements can be found on the conveyancer licences page.
Business names
If you want to do business under a different name to your own, you must have this approved by the Fair Trading Commissioner.
You can request this approval when you apply for a licence.
The name will also need to be registered under the Business Names Registration Act 2011 (Commonwealth).
Laws to follow
There are federal and state laws that you must follow to run a conveyancing business or do work as a conveyancer.
The Conveyancers Licensing Act 2003 (the Act) and Conveyancers Licensing Regulation 2021 (the Regulation) set out requirements for conveyancers.
This page explains the rules you need to follow in simple language. You should refer to the legislation for specific legal requirements.
Updated requirements for conveyancers
Updated requirements for licensed conveyancers in NSW began on 24 September 2021.
These requirements are detailed in the Regulation.
What has changed?
The regulation keeps the existing requirements for conveyancers to conduct business, with some small changes.
Licensees must:
- disclose to clients an estimate of costs for conveyancing work
- adhere to rules of conduct to avoid conflicts between duties to former and current clients (Schedule 2, rule 11).
The new Regulation also includes:
- an expanded list of offences for which penalty notices may be issued
- a new offence for failing to comply with the rules of conduct in Schedule 2 of the Regulation (section 8) – which is in addition to disciplinary measures that may be taken under Part 9 of the Act
- a change to the conduct rules so that licensees are not required to complete conveyancing work if their access to the Electronic Lodgement Network has been restricted, suspended or terminated under the Electronic Conveyancing (Adoption of National Law) Act 2012. If this occurs, licensees must take all reasonable steps to ensure the client, another licensee or a solicitor can complete the conveyancing work.
Rules of conduct
Conveyancers must follow rules of conduct when carrying on a conveyancing business and exercising functions under a licence. These rules are to ensure an appropriate standard of professional and ethical behaviour.
Breaking the rules of conduct is an offence and can result in a conveyancer being penalised and/or being subject to disciplinary action.
What are the rules of conduct?
The rules of conduct are set out in Schedule 2 of the Regulation. They include rules about:
- dealing with clients and other parties in a transaction honestly, fairly and professionally
- ensuring conveyancing work is carried out competently, and with reasonable skill, care and diligence
- keeping clients informed about their matters
- keeping records of certain communications about client’s matters
- keeping client information confidential
- never allowing any conflict of interest to interfere with a client's best interests
- disclosing an interest when referring clients to service providers
- termination and transfer of client’s matters
- conducting another business when carrying on a conveyancing business
- giving advice on loan or security documents
- honouring undertakings
- knowing and understanding relevant laws so that conveyancer functions can be carried out lawfully.
Supervising a conveyancing business
Conveyancers are responsible for supervising the conveyancing business conducted under their licence. They must:
- properly supervise employees
- establish, monitor and enforce procedures to ensure all relevant laws are complied with.
A licensee cannot be in charge of more than one place of business or conveyancing business. You must employ another licence holder to be in charge for each place of business.
A corporation licensee must also employ separate licence holders to be in charge of each place of business. The Fair Trading Commissioner may provide an exemption to this requirement. An exemption is generally only considered for offices in remote areas, where it may be difficult to have a licensee-in-charge for each branch.
A licensee who is conducting, or employed in, a conveyancing business is prohibited from conducting, or being employed in, the business of an ‘agent’ under the Property and Stock Agents Act 2002 (that is, the business of a real estate agent, a stock and station agent or a strata managing agent).
Employees
As a licensee, you’re responsible for work done by employees.
A licensee must not knowingly employ or pay a disqualified person in connection with their conveyancing business unless the Fair Trading Commissioner has given permission to do so.
A licensee must notify the Fair Trading Commissioner in writing, within 7 days if an employee is disqualified from doing conveyancing work.
A disqualified person must not seek employment or payment in connection with a conveyancing business unless they have informed the licensee of their disqualification. Employees must notify a licensee within 7 days of becoming a disqualified person.
Go to the Conveyancer licences page for more information about disqualified persons, or submit a notice through the Make an enquiry page.
Disclosure of costs
You must disclose certain information to your clients about the conveyancing work to be carried out, including:
- the amount of the costs for the work (if known)
- if the amount of the costs is not known, the basis of calculating the costs and an estimate of the costs
- the billing arrangements
- the client’s rights under Part 4 of the Act relating to the hearing of disputes about costs by the Tribunal
- any conflict or beneficial interest required to be disclosed by the regulations.
If a licensee proposes to carry out both conveyancing and non-conveyancing work for a client, the licensee must also disclose that fact to the client as well as the nature of the non-conveyancing work.
Disclosure must be made as required by Part 3, Division 5 of the Act, including being made:
- in writing and in clear plain language
- before or when the licensee is retained to do the conveyancing work or, if not reasonably practicable, it is to be made as soon as possible after the licensee is retained.
If a licensee fails to make a disclosure relating to costs as required, the client need not pay the costs of the conveyancing work and the licensee may not bring proceedings to recover the costs.
Advertising
Advertising is subject to conditions as set out in the Act, Division 4 – Advertisements and Representations.
As a licensee, you can advertise in relation to conveyancing work as long as the advertisement:
- is not false, misleading or deceptive
- does not breach any laws, including the Competition and Consumer Act 2010, the Fair Trading Act 1987, and any other relevant legislation.
Record keeping
A licensed conveyancer must keep originals or copies of all documents for any transaction carried out by the licensee or the licensee's employees. These include:
- all documents evidencing the transaction (including, for example, agreements, transfers and mortgages)
- all associated documents (including, for example, documents required to be attached to a contract for the sale of land, inspection reports, requisitions on title and responses to requisitions)
- all other documents and records kept, issued or received by the licensee or their employees (including, for example, letters, file notes, invoices and settlement sheets).
These records must be:
- kept in a separate file for that transaction only
- kept safely by the licensee for at least 7 years, unless they have been lawfully transferred to another licensee or a legal practitioner
- in English, if they are records required to be made or produced by the licensee.
These requirements are set out in Part 6 of the Regulation.
Conveyancer audit reports
Under the Act, the records of any trust money held by conveyancers must be audited.
The annual audit period ends on 30 June each year.
The auditor's report must be submitted no later than 30 September each year, within 3 months of the audit period ending.
See the Trust accounts and audit requirements page for more information.
Discipline and enforcement
The Fair Trading Commissioner can take disciplinary action against licensed conveyancers who:
- breach the Conveyancers Licensing Act 2003 or Conveyancers Licensing Regulation 2021, including the rules of conduct
- breach a licence condition
- become disqualified from holding a licence
- cease to be ‘fit and proper’ for the duties of a licensed conveyancer
- fail to pay a required contribution to the compensation fund
- fail to comply with an undertaking made to, or a direction given by, the Fair Trading Commissioner
- fail to pay a fine imposed by the Fair Trading Commissioner following disciplinary action
- hold a licence that was obtained fraudulently or by mistake.
Penalty notices
Penalty notices are a quick and efficient way of dealing with minor offences.
NSW Fair Trading can give a penalty notice to a person if there is evidence that they have committed an offence under the Act or regulations.
If the person does not wish to have the matter determined by a court, they can pay the amount of the penalty within the time specified in the notice. Payment is not an admission of liability for a related civil claim or action.
Penalty notice offences and amounts are prescribed in Schedule 3 of the Conveyancers Licensing Regulation 2021.
Show cause notices
The Fair Trading Commissioner can issue a ‘show cause notice’ to begin disciplinary action. Show cause notices:
- are issued in writing
- give the person at least 14 days to respond
- describe the alleged grounds for disciplinary action.
A show cause notice gives the person the opportunity to make an oral or written submission to the Fair Trading Commissioner to show the reasons why action should not be taken.
Disciplinary actions
If there is a reason for disciplinary action, the Fair Trading Commissioner can take the following actions:
- caution or reprimand
- give a direction – an instruction to take a particular action within a specified time
- undertakings – a direction requiring the person to agree to operate in a certain manner
- monetary penalty – impose a penalty of no more than $11,000 for an individual, and $22,000 for a corporation
- licence condition – impose a condition on the licence, for example, a condition that prevents the holder from performing certain functions
- licence suspension – suspend a licence for a period no longer than the unexpired term of the licence
- licence cancellation
- disqualification – declare a person as disqualified from holding a licence under the Act, either permanently or for a set period of time
- disqualification from management – disqualify a person from being involved in directing, managing or conducting the business of a licensee
- public warnings – where urgent action is needed to protect consumers from significant loss or harm, the Fair Trading Commissioner may issue, where public risk is immediate, a public warning alerting consumers to the risks of dealing with a particular person
- appoint managers and receivers – a manager can be appointed to carry on the business of a licensee whose licence has been suspended or cancelled or who is no longer able to properly manage the business, to prevent disadvantage to existing clients. Also, in a range of cases, including where a licence has been suspended or cancelled, or where a failure to account is suspected, the Fair Trading Commissioner may apply to the Supreme Court to appoint a receiver.