Buying a property can be very stressful, it's always a big investment and there's a lot on the line. Not only that, but the process and paperwork can be very complicated and confusing.
Everyone wants their property purchase to go smoothly, but that can be easier said than done if you don't have a lot of property experience.
Don't worry, there are plenty of things you can do to make things easier for yourself. Here's what you need to know.
Tips for buying a property smoothly
If you don't have a lot of experience with buying property, it can be a daunting task. Here are some of the things you can do to make the process simpler:
1. Inspect the property thoroughly
Make sure you check if everything works properly. Do doors and cupboards open and close properly? Does the air conditioner work? Does the stove work? Does anything look like it might need repairs in the near future? Don't be afraid to ask questions and test everything before buying a property.
2. How is the condition of the property?
When buying a property, you buy it in the condition that you last inspected it in. This is why the first tip is so important.
This means if anything needs to be repaired or cleaned before you take possession, you will need a special clause in the Contract or the Vendor is not obliged to do it. They must only maintain it in the same condition as when you inspected it. A property lawyer can help you with special clauses.
If you need a home loan, make sure the Contract is conditional on getting approved for finance. That way, if you do not obtain finance, you are not still bound to the purchase. Without the Contract being conditional on finance, you may lose your deposit if you are not approved for a loan.
4. Get advice on the contract
Get an expert to look over your Contract for you. A property lawyer or conveyancer will be able to review the Contract before you sign it so that any issues are identified early and before you sign it. The peace of mind you get from knowing an expert has had a look is invaluable.
5. Let your property lawyer represent you
There are plenty of things your property lawyer can do for you to make things easier. This includes things like handling the paperwork and letting them communicate with the agent and vendor as well.
What do you need to do?
Once you're ready to proceed with buying a property, you need to do all the paperwork and finalise the settlement. This involves quite a lot of paperwork, including the Contract of Sale, section 32 Vendor's statement, Transfer of Land, verification of identity, and purchaser statement.
You also need to consider the details of the settlement. The length of the settlement can be negotiated and agreed upon between the parties, but the Vendor will have the final say.
You need to allow an appropriate amount of time for the settlement so that you have time to get finance approval and wait for the bank to prepare the mortgage documents. You also need to allow time for the Vendor's bank to prepare. Your property lawyer can advise you on an appropriate settlement period.
Mistakes to avoid
If you want your property purchase to go smoothly, then you need to avoid making any mistakes. It can be pretty easy to get things wrong if you're inexperienced, and mistakes can range from fairly minor to hugely expensive.
Here are some common mistakes that you need to keep in mind and avoid:
1. Getting the documents wrong
If you're not familiar with all the documents you need or how to prepare them, it can be easy to make mistakes or use the incorrect documents. Important documents include the transfer of land, duty statement and statement of adjustments.
2. Working with a difficult Vendor
It is possible that your Vendor may take advantage of you by making unfair demands and delaying settlement. If you don't have much experience, you may not know what is and isn't acceptable conduct for a Vendor.
3. Releasing the deposit too early
In certain circumstances, you may be pressured into releasing the deposit in circumstances where you should not do so. Without experience or expert advice, you may not know whether it is in your best interests to release the deposit or not.
How a property lawyer can help
Your property lawyer will be able to guide you through the whole process. If there is anything that you are unsure about, your property lawyer or conveyancer can help.
If you want them to handle everything for you, you can engage your conveyancer or property lawyer before you sign the Contract. That way, they can look over the Contract and ensure everything is as it should be.
After that, they can help you with everything that needs to happen during the settlement. This includes preparing all the necessary documents and communicating with other parties such as the agent, the Vendor, your bank, and the rate and water authorities.
At Rose Lawyers, we have over 35 years of experience helping our clients with buying property. Our property lawyers can provide as much or as little help as you need to make sure everything goes smoothly.
For more information on how we can help you with buying a property, call us on 03 9878 5222.