Buying a Property
1. Setting the Budget & arranging Finance
The first step is to determine how much you can afford. If you are proposing to borrow money then this process includes speaking with Financiers to determine how much you can borrow. Don't forget to budget for expenses such as stamp duty, legal fees, removalists, cleaning costs and new furniture. You should see a Lawyer at this point for a detailed explanation of the conveyancing process and to ensure that you have not missed anything. Patrick Lim & Associates are able to assist you with your loan requirements. If you choose to obtain your loan through this Firm, then there will be a rebate off your legal fees (conditions apply). First Home Buyers are eligible for a Government Grant and exemptions from Stamp Duty.
2. Making an Offer or going to auction
Look at as many properties as possible. In so doing, you will gain a good understanding of the market and the relative values of the properties. Short list at least 3 properties and make an offer on your first choice. Don't fall in love with a property and be prepared to "miss out". There will be other and better properties ! If you are going to an auction, it is vital that you complete steps 3 and 4 before the auction.
3. Getting the Contract checked
Once your offer has been accepted, the Real Estate Agent will send a sales advice to your Lawyer. Obtain a complete copy of the contract and ask your Lawyer to check it for you. Your lawyer will explain the contract and if necessary, negotiate amendments to the contract on your behalf.
4. Pre Purchase enquiries
Your lawyer will arrange for the property to be inspected for structural faults, defects and pests. A comprehensive Building and Pest Report will be presented to you. In this way, you will avoid buying a property which is structurally unsound or which may be in very poor condition.
If you are buying a Strata Property, then your Lawyer will obtain a Pre-purchase Strata Report for you. The report will reveal whether there are any past, ongoing or proposed works which may be of concern (such as the rectification of water penetration, curing of concrete cancer, upgrading of fire safety, repainting of the building) as such works many result in substantial costs to the owners. It will also reveal whether there is any history of disharmony or other problems.
5. Exchange of Contracts
Once you are satisfied with the condition of the property, the contract and your loan has been approved, your Lawyer will ask you to sign the contract and proceed to "exchange". Exchange means that the contract signed by you is swapped with an identical copy of the contract signed by the Vendor. Normally, you will be required to pay a deposit of 10% either by cheque or Deposit Bond. Exchange means that the contract is now legally binding on the parties.
Where purchasers exchange contracts without first obtaining legal advice, they will have a cooling off period of 5 working days which enables them to pull out of the contract during the cooling off period. A penalty of 0.25% of the agreed purchase price will be forfeited to the Vendor if the Purchaser pulls out.
6. Payment of Stamp Duty
Stamp Duty is paid after exchange of contracts. First Home Purchasers are entitled to a limited exemption from stamp duty. Your Lawyer will arrange for the Contract to be "stamped" even if an exemption applies. To calculate stamp duty click here.
7. Searches with Government Departments
Your Lawyer will conduct searches with various Government Departments to determine whether the property is affected by any proposed plans or works by each relevant Government Department. Your Lawyer will also check the zoning as well as outstanding land tax, council rates, water rates and strata levies which may be owing on the property.
8. Satisfying your lender's requirements
Your bank or lending institution will require information and documents to be provided to them to enable them to prepare the loan and mortgage documents and to authorise the loan advance. Your Lawyer will liaise with your lender on your behalf and satisfy their requirements.
9. Final Inspection
You must arrange with the agent for you to inspect the property on the morning of the settlement day to ensure that the property is in substantially the same condition as at the time of exchange and that all of the promised inclusions have remained on the property.
10. Settlement
Your Lawyer will attend settlement on your behalf to complete the conveyance. If you are borrowing money from a financial institution, your lender will register the documents to transfer the property into your name and then hold onto your Certificate of Title until the loan has been repaid.
Once the agent has received confirmation from the Vendor that the settlement has be completed, you will be able to collect the keys from the agent.
The above is not legal advice and is only a brief summary of a complex area of Law. You must seek legal advice which is appropriate to your particular and specific circumstances.
Buying a selling a property step by step
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Patrick Lim & Associates understands that buying or selling a residential or commercial property is a big decision and a significant matter for most people.
Here at Patrick Lim & Associates, we cater to all people making property transactions in New South Wales.
Patrick Lim & Associates specialise in:
• Assistance with the sale or purchase of property.
• Guidance on costs involved including stamp duty and taxation
• Advice regarding the Contract for Sale
• Advice and representation to negotiate special terms and conditions for the sale or purchase of your property
• Advice on lenders' requirements
• Performing title searches
• Advice on the right questions to ask the seller to ensure the property is legitimate and correctly valued
• Assistance with property settlement
• Contract review and preparation
• Property settlements and negotiations
• Commercial & Retail Leases
• Auction enquiries
• Assistance with identifying suitable opportunities for finance
• Assistance for first home owners & the First Home Owners Grant
• Mortgages, refinancing & property deposit bonds
• Property developments
• Property subdivision
Our conveyancing services are offered at competitive rates, and we deliver them through a highly qualified and experienced team. At Patrick Lim & Associates, your matter will personally handled by a Lawyer (not a conveyancer or law clerk). The Lawyer assigned to your matter will personally keep you up to date on the progress of your matter and will be available to personally answer your questions.
To arrange a consultation with Patrick Lim & Associates and chat with an experienced solicitor
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