Buying a home is one of the most stressful and expensive things you will ever do. It’s vital that you seek the correct advice from someone experienced in Conveyancing, and who knows the Shepparton and surrounding areas.
Before you start looking
Your first consideration should be in regard to finance. Make sure that you have prepared a budget, and work out how much you can afford to pay, which also includes Stamp Duty, Titles Office fees, Conveyancing and any other costs. Your Broker/Banker will provide you with information about how much you can borrow, Banking fees/costs and Government costs. Make sure you read everything thoroughly, from the pre-contractual statement which outlines the fees and charges to which you’ll be subject, to the actual mortgage contract itself. Most Mortgage documents are in plain English, but you should read them carefully before signing, and you are entitled to legal advice should that be required. Remember that you are under no obligation to sign anything on the spot. Take the time to read through all documents carefully, so that you understand what you are signing.
Once you have found a property you like, I strongly recommend that you arrange a pre-purchase building inspection report and a pest inspection report. These are written reports about the condition of the property and help you find out any potentially costly problems before you sign a Contract. You may be able to use this information to negotiate a reduction in the purchase price. If you’re not sure who to trust to do these inspections, talk to your Conveyancer. They will be well aware of which inspections are worth doing.
Making an Offer
If you’re happy to proceed, you can make an offer. You might be asked to pay a small sum as an initial deposit, but this is fully refundable if you don’t end up signing the contract. It does not mean that the property is yours yet either, as the agent can take other offers.
If your offer is accepted and you are given a Contract to sign, it is important that you obtain advice from your Conveyancer before you sign it. Again, you are under no obligation to sign anything on the spot. Usually, the Vendors Conveyancer/Lawyer will prepare a Section 32 Statement and Contract and forward it directly to your Conveyancer for review. You need to discuss your situation with your Conveyancer, as there may be several things that can be negotiated in your favour, and you need to be absolutely clear on your rights and responsibilities before signing. It is critical that your finances are in order before you sign any Contract.
Signing the contract
When you do sign the contract you will need to pay the 10% deposit, unless you or your Conveyancer have negotiated a particular amount to be paid. This is held in Trust by the real estate agent and is released to the seller (Vendor) after the property is settled. If you don’t have 10% available your Broker, Banker or Conveyancer can advise in regard to getting a deposit guarantee/bond in lieu of the cash.
After the contract has been signed, your Conveyancer has a number of tasks to perform including:
- Exchanging Contracts with the Vendors Conveyancer/Solicitor so that both parties hold a fully signed copy
- Liasing with your banker/broker to ensure your finance is approved by the due date
- Preparing PEXA (Property Exchange Australia) workspace and electronic documents
- Liaising with your Broker/Banker to ensure that your loan funds are available for settlement
- Checking that all necessary documents have been prepared and correctly signed
- Attending to your Settlement online using PEXA
- Notifying the rating Authorities about change of ownership and keeing you informed of the progress of your purchase along the way.
Settlement (on the day that the money is exchanged for the property and keys handed over) is scheduled in accordance with the contract or as agreed between the parties. All matters are now managed online using PEXA online settlements. All parties to the transaction, including incoming or outgoing banks (as mortgagees) use the electronic workspace to set up and complete your settlement. Documents are lodged and registered, and all funds transferred electronically to complete your settlement in "real time". Following PEXA confirmation that settlement has taken place, we will contact you to advise that you can collect the keys to your new property from the Agent.