We understand the significance of purchasing your property. Our team of Solicitors have the expertise and dexterity to ensure that the legal process is not only straightforward but also trouble free.
Before purchasing a property, the potential buyer must know how the purchase would be financed. However, it is advisable to apply for a pre-approval from the loan provider first. There is no contractual commitment to you or the loan provider at this stage but gives an indication of your suitability to obtain finance.
What this process does is that it helps in decreasing the lengthy period it would take in obtaining finance. It also shows how serious you are about making an offer and ensures that the process of obtaining finance is simple.
Enquiries and Reports
Most properties would have been inhabited by others before a new person decides to make a purchase. Due to this, part of the process of buying a property is to ensure that the relevant searches and enquiries are conducted before an exchange of contracts between the buyer and the seller.
This helps to prevent the transaction from falling through and ensures that you obtain a good title free from any undisclosed encumbrances and charges.
Some of the reports that must be obtained before the property is purchased are:
- Pest Report
- Building Report
- Engineering Report
- Survey Report
- Building Certificate
The cost of obtaining these reports can be expensive, and Falzon Legal liaises with seasoned experts to provide these reports to you at your request.
Exchange and Cooling Off
Once the relevant searches have been conducted on the property, and there has been an exchange of contracts (signed) between the purchaser and the seller, the property would no longer be available on the market because the seller is by law, contracted to sell the property.
The exchange of the contract is usually done at the office of the real estate agent, and the purchaser has a ‘‘cooling off period’’, usually five (5) business days, which can be extended by an agreement between the parties, to withdraw from the contract via a written ‘‘notice of rescission’’ within the cooling off period.
On the expiration of the cooling off period and the purchaser does not rescind the contract, a full deposit (normally 10% of the purchase price) has to be paid. After this, the buyer cannot withdraw from the deal.
Stamp Duty is the tax payable when there has been a transfer of property between the buyer and seller. It is vital that you take this into consideration as part of the fees to be paid when purchasing a property because the amount is calculated based on the price of the property.
Before signing the contract, it is also important that steps be taken to ensure that you have the funds to cover this transaction. There are several websites online where this can be calculated. You could do this by visiting the Revenue NSW’s website at www.revenue.nsw.gov.au to calculate the duty as it applies to your property.