Purchasing property is an exciting time of your life. Whether you are buying a property for investment purposes or to live in, we can help. As you are no doubt aware, there are a number of issues you need to consider before purchasing a property. Often, the contracts of sale can be large and complex, the real estate agent is pressuring you to purchase and you are liaising with the banks. It can become overwhelming, very quickly. Our conveyancing and property solicitors are here to help. We will make the conveyancing process as smooth as possible for you. We also offer flat fees for our conveyancing services.

Some of the things you need to consider in the conveyancing process are:

Pre-Cooling off Inspections

In NSW purchasers who enter into a Contract to purchase residential property are provided with a 5 business day cooling off period, commencing on the first business day after the date of the Contract. A purchaser can pull out of the Contract for any reason whatsoever during this period, although a purchaser who exercises their cooling off rights and pulls out of the Contract during this period will forfeit what is commonly termed as the ‘holding deposit’, being 0.25% of the purchase price. This holding deposit is usually paid to the real estate agent at the time of signing the Contract and for a property valued at $350,0000.00 amounts to $875.00.

There is no cooling off period if you buying at Auction, or sign a contract to purchase a property the same day it went to Auction.

The balance between purchasers and vendors when it comes to purchasing a home in NSW is still overwhelmingly ‘Buyer Beware’. As such, it is important to obtain the right reports and inspections prior to the expiration of the cooling off period (or prior to buying at Auction given that there is no cooling off period).

A Property Lawyer can advise you on the most suitable reports and inspections to conduct and can organise for Pest and Building Reports, Strata Reports, Survey’s and Council Building Certificates. They can also make enquires with statutory authorities on your behalf such as the Local Council, RTA, State Rail and the Office of State Revenue.

Contract for Sale of Land

The Contract for Sale of Land contains a number of terms and conditions which may adversely impact you if you are not properly advised. The Contract also discloses the restrictions on the property such as easements, covenants, rights of way and for strata properties (units and townhouses) – by laws along with the use that the land can be put to and the sewer location.

Liaising with your bank and settlement

It is important that your bank is ready to provide the funds to finance the purchase on the scheduled settlement date – usually 6 weeks after the date of the Contract. A delay by your bank will result in not only you missing out on moving into the property on time, but will also result in you being liable to further interest and charges imposed by the vendor in accordance with the terms and conditions of the Contract.

Purchasing Property – Quick Tips

1.Never sign any Contract for the purchase of property without first having the Contract reviewed by a professional property advisor. Some Real Estate Agents will, as a marketing ploy, convince you that there are other parties ready to pounce on this property if you do not sign on that day.

2.If you cannot resist, and you do sign the Contract, ENSURE that the Contract provides for a minimum five (5) day cooling-off period (be aware that a cooling-off period does NOT apply to Auction Purchasers and only applies to residential property, not commercial property).

3.A cooling-off period allows a purchaser to withdraw from the purchase of a property without the possibility of the Vendor claiming damages against them. Should a Purchaser withdraw from the purchase of the property within the cooling-off period, they are liable to the Vendor to 0.25% of the sale price of the property, rather than the full 10% which they would be liable for if they withdrew after the expiration of the cooling-off period or where there was no cooling-off period.

4.First Home Purchasers should be aware of Both Federal and State Government assistance schemes that give First Home Purchasers financial benefits towards the Purchase of property.

The Property & Conveyancing Team at Prime Lawyers can provide information and assistance on all aspects of Contracts, Cooling-off Periods and First Home Purchaser benefits.

Author Bio: Danny Saad has many years experience in Property Law working with the experienced Property Lawyers at Prime Lawyers Wollongong.

Category: Real Estate
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