Buying a property is a big deal, not to mention a big expense. If you’re thinking about buying your first property, it pays to know your rights as a buyer and how the buying process works. If it’s been a while since you’ve been in the market, then this article may be just the refresher you need.
In this article, I will give you a brief overview of some of the issues that you should consider when purchasing property.
Cooling Off Period:-
Ideally, by having a buyers advocate, such as Domain Property Advocates, you would have checked the matters raised, in this article before you commence to negotiate or bid at Auction. However, if you have already signed a Contract for the purchase of a property without checking the matters raised in this article, it may be possible to use the “3 day cooling off” period to withdraw from the Contract, but its application has limitations and a cost consideration.
Please feel free to telephone either the friendly team at Domain Property Advocates or myself if you wish to discuss the implications of the cooling off period on your purchase, but please hurry, as time is short.
Goods:-
Goods are moveable items such as carpets, light fittings, internal and external blinds, curtains, dishwashers, swimming pool equipment, TV antennas, portable air conditioning units, portable clothes lines and remote control devices. The list is endless.
You should carefully check that all Goods are correctly listed in the Contract. If the property you are looking at buying is being sold at Auction, then you should seek clarification from the selling agent prior to the Auction to ensure that you know which Goods are being sold with the property. If you are negotiating to purchase the property by way of Private Sale (i.e. other than by an Auction) then the issue as to which Goods are being included in the sale should form part of your negotiations. Either way, you should carefully check that all Goods are listed in the Contract before you sign.
Zoning Issues:-
All properties are covered by a Planning Scheme, which will place the property within a zone and impose restrictions on its use and development. It is not uncommon for the current use and development of the property to be inconsistent with the current zoning, i.e. a non-conforming use due to new changes to planning schemes. If the use of the property is non-conforming, it may not be possible to obtain planning permission to rebuild or extend. If you have any concerns in relation to the zoning, then you should contact me or your legal adviser, as early as possible to discuss the ramifications of the zoning, as changes are usually complex and costly.
Stamp Duty:-
When budgeting for your purchase you should take into account government charges (stamp duty and Titles Office fees on the transfer and on your mortgage, if any).
Stamp Duty exemptions or reductions may apply in the following circumstances: Concession card holders, First Homeowners, or those who intend to use the property as their Principal Place of Residence. Savings vary from a total exemption from Stamp Duty, to a saving of up to $2,850 on Stamp Duty, to a government grant for First Home Buyers.
If you believe you may be eligible, you should consult me or your legal adviser, as early as possible to discuss the eligibility requirements.
Condition of the Property:-
When you purchase a property you buy it as you find it (unless there is a special condition to the contrary in the Contract). You should carry out a detailed inspection of the property to check the structure and condition of the property and to make sure appliances and fittings are in good working order. It may also be worthwhile to engage your own builder or architect to inspect the property.
If the Vendor or the selling agent has agreed or promised to make any changes to the property, then you should consult me or your legal adviser about the drafting of an appropriate special condition to be inserted into the Contract before you sign it. To ensure the agreed additional works are contracted.
If the Contract does not specifically provide for the Vendor to attend to matters promised by the agent during negotiations, or hand the property over in a certain condition at settlement, then you may be required to settle on the due date and then seek recourse by costly litigation after settlement.
Building Works:-
The law requires the Vendor to provide details of any building permits issued in the last 7 years for a residence, whether or not the works have been built.
On signing a Contract, you may be liable for any illegal structure on the property unless appropriate conditions are included in the Contract.
Therefore, it is vital that all building works undertaken to the original construction have a building permit and either an unconditional Certificate of Final Inspection or Certificate of Occupancy.
The best time for making enquiries about whether all necessary building permits and final approvals for building works on the property have been obtained is before the Contract is signed or before the end of the cooling off period (if any).
If any buildings or alterations have been carried out in the last 7 years and the value of the work exceeds $12,000 there should be insurance in force covering defects in the works. In the case of owner built works carried out in the last 7 years, regardless of value, the Vendor is obliged to provide an inspection report as to the condition of the works. We recommend you obtain a copy of the defects insurance and, if applicable, the inspection report from the selling agent or the Vendor before signing the Contract or before the end of the cooling off period (if any).
If you have concerns as to whether all necessary building permits, final approvals and insurance have been arranged by the Vendor, then please feel free to consult me. I can assist you to determine the appropriate steps to be taken to protect your position.
Owners Corporation:-
If you are buying a property that is in a unit or apartment that is affected by an Owners Corporation, you should obtain a copy of the Owners Corporation Certificate from the selling agent.
This Certificate will disclose information such as the Owners Corporation fees and levies; whether the Owners Corporation is proposing to perform any repairs, and any legal claims against the Owners Corporation.
It will also outline the Owners Corporation’s rules and insurance arrangements with respect to the common property, including public liability insurance cover and building insurance (if any).
Measurements:-
If you are purchasing land or a house, then you should obtain a copy of the Title Plan from the selling agent and measure the boundaries of the property and the distance to the nearest intersection. This is to check that the location and boundaries of the property are correct. If you are in any doubt, I am able to introduce you to a surveyor. If you intend to bid at Auction and are not satisfied that the actual property accords with the title, you should consult me well before the Auction.
Conclusion:-
If you would like any further information or assistance, please do not hesitate to contact me or my friendly team at M A Legal on 1300 88 73 91 or email info@malegal.com.au.
Article by Rex Afrasiabi (LLB BCom),
Principal Lawyer and Director, M A Legal Pty Ltd
M A Legal is proud to align itself with the innovative team at Domain Property Advocates. As such M A Legal is happy to assist client’s of Domain Property Advocate with all their legal needs, including a complimentary and no obligation thorough review of any proposed Contracts for the purchase of property.
If interested in learning more about this update please contact me today!
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As Domain Property Advocates continues to grow I will continue to provide superior service to those choosing to use property as their investment. It is an important choice of who to choose as the one responsible to look after your property. You can be sure that Domain Property Advocates will always strive to be the best. |  |
