Buying real estate
Whether this is your first or fifth property, it can be stressful and will always be expensive if you get it wrong. We can and want to help.
Before You Start
The first round of decisions you will likely need to make is in regard to finance. Make sure you understand your options, have 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.
Once you have found a property you like, it is advisable to consider various pre-purchase building inspections, pest inspections and/or a strata report. 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, talk to us. We are happy to arrange or recommend inspectors we rely on.
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 signing the contract. It does not mean that the property is yours yet either, as the agent can take other offers.
At this point we recommend having one of our team review the contract and consider any amendments that may be required.
Signing the Contract
If your offer is accepted then we must see the contract you’ve been given and discuss your situation, your needs and any amendments to be negotiated. 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 we have negotiated a special condition otherwise. This is held with the real estate agent and is released to the seller after the property is settled. If you don’t have 10% available Fox Cheshire can advise in regard to getting a deposit guarantee in lieu of the cash.
After the contract has become binding, Fox Cheshire has a number of tasks to perform including:
- Arranging payment of stamp duty
- Liaising with your lender in regard to all their requirements around your mortgage
- Checking with various government authorities to see if they have any 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
On settlement day Fox Cheshire 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 you become the new owner!
Contact us to discuss the specific property you are considering buying with an experienced property lawyer.