Buying a home is one of the most stressful and expensive things we ever do. It’s important that you seek legal advice from someone experienced in property law and who knows the area.
Before You Start
The first round of decisions you will likely need to make is in regard to finance. Make sure you read everything thoroughly, from the pre-contractual statement which outlines the fees and charges to which you’ll be subject, to the actual mortgage contract itself. Remember you are entitled to legal advice and are under no obligation to sign anything on the spot.
Pre-purchase Inspections
Once you have found a property you like, you should generally arrange a pre-purchase building inspection report and perhaps a pest inspection report. These are written reports about the condition of the property and help you find any potentially costly problems. You may be able to use this information to negotiate a reduction in the purchase price. If you’re not sure who to trust to do this inspection, talk to your lawyer. They will be well aware of which inspectors have the better reputations and may be worth hiring. Ideally, you should have the contract reviewed prior to signing.
Signing the Contract
If your offer is accepted then take the proposed contract you’ve been given to your lawyer/conveyancer and discuss your situation with them. There may be several things that can be negotiated in your favour, and you need to be absolutely clear on your rights and responsibilities before signing.
When you do sign the contract you will need to pay the 10% deposit, unless you or your lawyer/conveyancer has negotiated a special condition otherwise. This is generally held with the real estate agent and is released to the seller after the property is settled, or earlier in some circumstances. If you don’t have 10% available your lawyer/conveyancer can advise in regard to getting a deposit guarantee in lieu of the cash.
Settlement
After the contract has become binding, your lawyer/conveyancer has a number of tasks to perform including:
- Arranging payment of stamp duty
- Liaising with the lender in regard to the mortgage
- Checking with various government authorities to see if they have a vested interest in the property
- Checking to see if there are any outstanding debts to local council
- Calculating adjustments for council, water and strata rates
- Making final checks on the title
Settlement may now be concluded electronically otherwise on settlement day your lawyer/conveyancer will attend a meeting that will include the seller’s lawyer/conveyancer as well as any lenders involved and the funds will be handed over in exchange for the title and the keys.
Contact us to discuss any property you are considering buying and how we can assist you.