BUYING PROPERTIES

Buying Property Services in Port Macquarie

Legal Advice

Contract Negotiations

Stress Free Settlement

BUYING PROPERTY

Buying a home is one of the most stressful and expensive things you will ever do. It’s vital that you seek legal advice from a trusted, experienced conveyancer who specialises in property law.

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 will need to arrange a pre-purchase building inspection report & pest inspection report. Strata reports for strata properties would also need to be arranged where applicable.

These are written reports about the condition of the property and helps you find out 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, call us for recommendations. We can provide reputable specialists to carry out these inspections.

Making an Offer

If you’re happy to proceed, you can make an offer. You might be asked to pay a small sum as an initial deposit, but this is fully refundable if you don’t end up exchanging the contract.

It does not mean that the property is yours yet either, as the agent can take other offers.

Signing the Contract

If your offer is accepted we will discuss the contents of the contract and proceed with negotiating the terms prior to exchanging with the vendor’s legal representative. There may be several things which may be negotiated in your favour. We will make it clear to you on your rights and responsibilities before committing to any contract.

When you are in a position to exchange the negotiated deposit will need to be paid. This is held with the real estate agent or the vendor’s legal representative and is released to the seller after the property is settled. If a cash deposit is not available we will assist with obtaining a deposit guarantee in lieu of the cash.

Call us on 02 6583 8365 to discuss the specific property you are considering buying.

Settlement

After the contract has become binding, we carry out the relevant steps to ensure settlement occurs on the correct date, these tasks include:

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 a local council.
Calculating adjustments for council, water and strata rates.
Making final checks on the title.

On settlement day we will either attend a meeting where the funds and documents involved will be handed over in exchange for the title and the keys or the transaction will be carried out in the digital platform and these documents and funds will be transferred electronically on the Pexa (Property Exchange Australia) platform. Once completed the keys may then be handed out.

Purchase by Auction

Going once, going twice, we’re all done?…. No further bids…. Sold!

If you are attending an auction then there are a few points to understand before you start waving your bidding paddle around. Here are a few pointers:

1. Get in early

If you are thinking of bidding at an auction get in touch with Phil or Emily and have the contract reviewed and be advised on what action to take prior to attendance on the day.

There is no fee or obligation for us to advise you.
If you want to get in early and possibly avoid going to auction, this can be achieved by negotiating with the vendor prior to the auction date or contacting local real estate agents in your area to obtain the inside knowledge as to which properties are in the stages of being listed for sale. The closer the auction date the less likely the vendor will sell without proceeding to auction.
2. No cooling off period

In New South Wales there is no cooling off period if you buy a property at auction, or on the same day as the property goes to auction. This means that once the hammer falls your cannot back out. Because of this bidders need to be prepared in case they are successful. If the property is passed in but negotiations continue well into the evening then remember – There is no cooling off period, even if the auctioneer has long departed from the building.
3. Get your finance in order

The biggest risk of buying a property is not being able to pay for it. Make this mistake and the deposit, 10% of the purchase price may be forfeited to the vendor. This can occur in as little as 8 weeks after the date of the auction. For those who have not purchased a property before, or are borrowing a high percentage of the property’s value, then obtaining unconditional loan approval can be more difficult than you may suspect.

Difficulty can arise when a bank has issued ‘pre-approval’ to a buyer prior to the auction with conditions which require the property to be valued, guarantees to be in place, or the provision of certain financial documents (such as tax returns) which are not available. In those circumstances, a pre-approval may not eventuate to a full loan approval at all, or not within the time required by the contract.

To avoid complications with finance speak with your bank lending officer, mortgage broker or financial advisor to ensure either an unconditional approval is issued prior to the auction (up to a certain value), or the terms of the ‘pre-approval’ are capable of being met shortly after the auction.
4. Have your legal representative read over the contract

We strongly suggest all purchasers obtain legal advice prior to attendance at any auction. We can negotiate the terms of the contract prior to the auction – The contract cannot be amended after the fall of the hammer.

The contract must be with the real estate agent at the time of listing the property for sale. The contract will include terms and conditions specific to the transaction, and documents which will disclose information about the property.

For example, it’s no good bidding on a property only to find out that the property will be tenanted for the next 12 months, there is a term of the contract which means the owner will be removing the brand new kitchen appliances you thought were staying, or that the property is affected by an easement preventing the construction of the swimming pool.
5. Buyer Beware

If you are the highest bidder then you purchase the property with all possible defects.

If you do not wish to become the owner of a house full of termites you will need to obtain the pest and building reports prior to an auction. It is an unfortunate expense but a necessary one.

Often the vendor will have obtained an independent pest and building report for prospective bidders, so check with the agent if there is a current report and purchase the report.

The same goes for any issues as to the boundaries of the property, or the legality of the structures within. Speak with us so that you are fully informed as to the content of any vendor reports and of your rights and the risks if you fail to properly investigate the condition of the property.