If you’ve found a home you would like to buy, congratulations – one of the most difficult tasks as a buyer is done. An experienced property lawyer is your ally in the home-buying process; there is no substitute for seeking solid legal advice before entering into one of the biggest financial decisions of your life. Fred Kalouche & Associates can help you review a contract to ensure you are comfortable and confident with your decision to purchase a property.
As with any big purchase, finances and loan approval are the best place to start. It is essential that you work closely with your finance broker or banker to obtain formal approval for your proposed purchase of property. You don’t have the luxury of time when you sign a contract of sale, so ensure that your finance partner is effective and efficient so as to avoid any unnecessary delays or stress.
Pre-purchase property inspections, including building inspection and pest inspection reports, can help you avoid costly pitfalls in your potential new home. These help you gain a clearer picture of the property and potentially its history or any building works. Written inspection reports outline the condition of the property, including repairs that might need immediate attention. If the inspections do find issues, you may be able to use these to negotiate a better price. There are many companies that offer these services, so, if you don’t know who to turn to, we may provide you with a recommendation.
If, after the building and pest inspections, you are satisfied with the property’s condition, you can proceed to the next stage. If you have elected to obtain a building and pest inspection prior to signing a contract of sale, you might be asked to pay a small sum as an initial holding deposit. If you sign a contract and pay this initial sum and elect to withdraw from the purchase within the cooling off period, this small deposit (0.25% of the purchase price) paid is non-refundable.
Once your offer is accepted, give the contract to your lawyer to review. This step is particularly useful because there may be other things your lawyer can negotiate in your favour. This is also a good opportunity to make sure you know exactly where you stand with your rights and responsibilities before signing. When you do sign and upon the expiry of the cooling off period, a 10% deposit will be payable, unless an alternate amount is negotiated by way of a special condition. The deposit you have paid is held by the real estate agent and releases it to the seller after property settlement. As some buyers, such as first-home buyers, might not have a 10% deposit, your lawyer can negotiate with the vendor payment of a deposit by way of a deposit guarantee bond or bank guarantee in lieu of cash.
After a cooling-off period (in which some situations there is none and the sale is final), the contract becomes binding. Your Fred Kalouche & Associates lawyer will now:
- Arrange stamp duty payment;
- Liaise with the lender in regard to the mortgage and readiness for settlement;
- Check with various government authorities to see if they have a vested interest in the property (subject to instructions);
- Check if there are any outstanding debts to local council;
- Calculate adjustments for council and water rates and strata fees (if applicable); and
- Conduct final checks on the title.
On the day of settlement, we will communicate with all parties to ensure a smooth transaction. Once settlement is effected, we will contact you to congratulate you on the sale and thereafter advise you to collect your keys from the sales agent.
This process can, at times, be stressful and confusing. Let us make it hassle-free. Contact us (02) 8062 6300