Buying property generally involve 3 basic stages: Pre-contract stage, Contract stage and Post-contract stage. The meaning of “Conveyance” is to transfer the legal title of the property from the seller to buyer upon payment of contract price at an agreed date.
Looking for and inspecting properties on market within your targeted area and budget. Before you negotiate for the price of your targeted property, you should consider to do a property valuation.
Buyer negotiates a contract without a property valuation may pay more than the true value of the property. If the contract value is much over than the true value, you may obtain a lower finance amount and in some occasion you may not be able to obtain the finance amount meet with your budget.
You should consider to seek advice before you commit into buying a property. Fill in the free consultation form and discuss with us.
Before you make an offer to buy a property, a valuation of the true value of a property is important. You may do your own search or appoint a property valuer. You should appoint a valuer independent to the seller or its selling agent.
Making an Offer
Before you make an offer, you should work out the estimated costs for completing the contract, cost budget may include the following items:
- contract price of the property
- stamp duty on the contract price
- eligibility of first home owner grant
- legal and financial costs
- outgoings expenses (if you are buying a unit/apartment or townhouse, you should be aware of the annual payment amount of body corporate levies)
If you are seeking finance for completion of the contract, you should make enquiry with your bank or your broker about:
- costs of application
- costs of finance/mortgage including mortgage insurance
- repayment terms
- what happen if you wish to pay out the finance/mortgage amount earlier
- what happen if you default in repayment
- what happen if you wish to vary the terms of the finance/mortgage agreement
Some people would consider to take out a life insurance to cover the balance of repayment for unexpected circumstance.
If you are buying an off-plan property, you should inspect the property when it is available. If you are buying an established property, you should appoint qualified inspector to inspect the condition of the house, swimming pool and pest control of the property immediately after signing a contract. It is advisable to impose inspection and finance conditions in the contract of sales.
It is prudent to insert special conditions, such as, subject to property search, subject to valuation, etc.
Post- Contract Stage
Beware where your money is going when you are paying the deposit to buy the property. The general rule is to pay to the real estate agent’s trust account and ensure you obtain an acknowledgement of your payment.
Appointing lawyer or conveyancer to manage the procedures to complete the contract and ensure convey the title of the property to you. If you are buying in joint names, you should decide how you wish to hold the legal title of the property, whether in joint tenancy or tenants in common. If you are uncertain, you should seek legal advice from your lawyer.
Buyer’s name on the contract is the legal name on the transfer of title, therefore, buyer should ensure the spelling of your name on the contract is corrected and same as in your passport. If you have any doubt, you should discuss with your lawyer.
Before completion of the contract, you will have to pay stamp duty on the contract price. You may eligible to apply for first home owner grant or stamp duty concession.
The meaning of conveyance is to convey a legal title from one entity to another entity. With the current general practice conveyance services would include calculation of the final settlement amount and prepare the transfer document. Your lawyer or conveyancer would notify you how to obtain the property keys to access the property after settlement.
Real Estate Agent
Agent for Seller
A real estate agent in general is the agent for seller to find a buyer. Seller pays commission to the real estate agent when they sell the property successfully.
Agent for Buyer
Buyer may appoint a real estate agent to find suitable properties for you. The role of a Buyer’s agent would negotiate with the seller for you or bid for you at an auction.
The role of a property agent is different with the agent for seller or for buyer. A property agent is appointed to manage your rental property and to look for tenants.
Finance to Buy Property
A finance broker is an agent to find a suitable financier for buyer and arrange the finance application process for a buyer. Buyer may save time and money to get a finance to complete the contract. However, a buyer has to aware that, a broker does not have access to all financiers’ products. They may be limited to a particular range of products that pay commission to them. Buyer should shop around yourself to find a product suitable to your own situation.