House-hunting can be a gruelling adventure that can push even the most ambitious purchaser over the edge. First you have to sift through pages of real-estate advertisements only to be disappointed that the “charming character home” is, in fact a termite-ridden structure about to collapse on the adjoining property. Then, once you have finally found something that makes your eyes light up, you are faced with a fat contract for sale and instructions to sign your life away. Well, this is where Solari Legal can help. At Solari Legal, we can guide you through every step of your purchase so that the home of your dreams does not end up giving you nightmares.
Finding your home loan
A house will not be the only thing you hunt in the property market. You also need to shop around for the best home loan before making your purchase offer. Obtaining preliminary approval for your loan from a reputable lending institution will equip you with more bargaining power when determining your purchase price.
As a sevice to our clients we have established (in conjunction with Business Partner Accountants) our own mortgage broker company A & L Professional Financial Solutions Pty Ltd to provide a comprehensive residential,commercial & industrial brokerage service to assist our clients find the best loan product for their needs at no cost to you. We find in this way by keeping it all under the one roof the whole process proceeds with little fuss & in an efficient manner for the benefit of our clients.
The Contract for the Sale of Land
You may have come across this thick collection of documentation amidst your house-hunting adventures. The “contract for sale of land,” or “the contract”, is the legal instrument containing important documents and provisions that protect your rights and interests. The solicitor representing the vendor (selling party), usually prepares the contract of sale and attaches all required statutory documents. Once you and the vendor are happy with a purchase price, the vendor will provide you with a copy of the contract. Once the respective solicitors representing the vendor and purchaser have completed all statutory searches, the contract will generally include:
- Contact details of the parties to the transaction
- Special conditions, implied terms and warranties
- Inclusions such as stoves, dishwashers and light fittings
- Various searches and certificates including:
- A title search which provides proof of ownership
- A survey outlining the measurements and boundaries of the property
- A local council certificate
- A drainage diagram showing drainage and sewer lines
- Building and pest inspection reports
- A strata inspection report if the property is part of a strata scheme (such as units or townhouses)
- Copies of other relevant documents showing restrictions to the use of land
Research your realty
Buying a house is both a significant financial investment and commitment. It is therefore crucial that you do your homework before taking the plunge, or you may be faced with a defective property that can have devastating financial and emotional consequences down the track. At Solari Legal we can ensure your legal and financial interests are protected with your purchase. The following are a few tips on searching smartly before purchasing:
- Inclusions: Remember that brand new dishwasher that made you smile and that gleaming chandelier that captured your heart? Well don’t be too shocked if they are not there when you move in. This is because many items may not be considered “inclusions” in your contract and could be removed from the property by the vendor. Speak to us at Solari Legal so that we can negotiate which items in the property you wish to be included as part of your purchase.
- Pest inspection: A pest inspection can reveal whether the property is termite or rat infested and the extent to which it needs pest control management.
- Building inspection: A building inspection will reveal whether the property is structurally defective, has a history of questionable plumbing or is in need of electrical re-wiring. It is imperative that you choose reputable building and pest inspectors so that you don’t experience any nasty shocks down the track.
Exchange of Contracts
You have done your research and you are ready to sign the contract. Well before you go any further you need to prepare a deposit, usually 10%, to demonstrate to the vendor that your offer to buy is genuine. You are now ready for exchanging contracts.
The exchange of contracts is where legal representatives of both the vendor and purchaser meet and check that their respective copies of the contract are identical. Once both parties are happy that the contracts are the same, it means that both parties agree to the same terms and conditions of the contract. Your deposit is then handed over to the vendor so that you and the vendor become legally bound under the terms of the contract.
Settlement
“Settlement” is the culmination of the conveyancing process where legal and financial representatives of each party to the transaction meet to check and swap legal deeds, pay the balance of the purchase price and complete other payments such as stamp duties and outstanding land tax.
After settlement, your solicitor will lodge your legal documents with the Land and Property Information to formally register your name as the proud new owner of the property. Speak to us at Solari Legal today so that we can advise you on smart and secure ways to settle your property.
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