ENTERING INTO CONTRACT – SOME GENERAL RECOMMENDATIONS
- If you are unsure who the true Purchaser will be, please include “and/or nominee/s”, following the name of whoever is signing the Contract
- Offer a low deposit
- ALWAYS include a “Subject to Finance” Clause if you have NOT yet been Approved
- In this Clause, be as specific as you can regarding your choice of Lender
- Special Conditions can include but are NOT LIMITED to Finance, Building & Pest Inspections, Swimming Pool Compliance Certifications
- If you will be taking on considerable expense following Building and Pest Inspection reports, you can negotiate your Purchase Price during the “Cooling-Off” period
- Any structures NOT approved by the Local Council run the risk of Council requesting they be removed (If they become aware)
- “Cooling-Off” (2 BUSINESS DAYS)commences after the Contract and Form One are both signed, and if not at the same time, will depend on which was signed last. If you sign the last Document before a weekend, you will have two additional days to make your own investigations!
Please phone me at anytime on 0410 037 659 if you have any questions regarding the above.
WHEN IS THE BEST TIME TO INVOLVE A CONVEYANCER?
The best time to contact a Conveyancer is for advice BEFORE you sign your Contract. I highly recommended that a Conveyancer check your Contract and Form One during “Cooling-Off”. This is the easiest time to cancel a Contract if you decide to do so.
HOW MUCH SHOULD I OFFER FOR A DEPOSIT?
It is not unusual for an Agent to suggest a deposit of 10% of the Purchase Price, however, this is not a requirement. In the event that Settlement does not occur for any reason, and you are at fault, you run the risk of losing your deposit. I suggest negotiating a Deposit that is as low as possible, but is also satisfactory to the Agent and the Vendor.
THERE IS AN ENCUMBRANCE REGISTERED ON THE PROPERTY. WHAT DOES THIS MEAN?
When your Property was first created as one of many Lots in a (major) Land Division, the Local Council and/or the Developers proposed a vision for how the area would look. An Encumbrance is the mechanism used to ensure that neighbourhoods maintain that particular vision. An Encumbrance may require that you use a particular type of fencing, for example. I would strongly advise you discuss your Encumbrance with me as most commonly they are not written in plain English!
You MAY need to Sign a new Encumbrance. The cost of this is determined by the Conveyancer who prepared the initial Encumbrance. As a rough guide, I would estimate an additional cost of between $300-$400.
WHAT DOES IT MEAN WHEN MY CONTRACT BECOMES “UNCONDITIONAL”?
A Contract can be unconditional from the very beginning! This Contract has NO Special Conditions attached to it at all! A Contract BECOMES unconditional when all of the Special Conditions are satisfied. At this point an Agent considers the property “SOLD!”, as all parties MUST now proceed to Settlement.
I PURCHASED THE PROPERTY AT AUCTION. DO I HAVE A “COOLING-OFF” PERIOD?
No, you are now committed to the Purchase and your Contract is “unconditional”.
I AM ELIGIBLE FOR A FIRST HOME OWNERS GRANT? HOW DO I APPLY?
Your Lender will prepare the Application and the Grant will be available at Settlement, along with the Funds that you are borrowing.
MY LENDER HAS TOLD YOU THEY HAVE “X” AMOUNT OF $ AVAILABLE FOR SETTLEMENT. MY LOAN AGREEMENT SAYS “Y” AMOUNT. WHY IS THIS DIFFERENT?
Your Lender takes any Fees and Charges due to them from the Loan Amount that you have borrowed. The remainder is available to use for your Purchase. Most Lenders send a Statement to you following Settlement. If you have any queries in relation to their breakdown of cost’s, it is advisable to speak to them.
AFTER PAYING THE DEPOSIT, I STILL HAVE SAVINGS THAT I NEED TO PUT TOWARDS THE PURCHASE. HOW DOES THIS HAPPEN?
When your Lender is ready to attend Settlement, they provide me with a Final Amount of Funds available to settle. I then prepare your Settlement Statement. This breaks down costs such as Conveyancing Fees, Stamp Duty and Land’s Titles Office Fees. At this time, I will contact you to Transfer or Deposit the additional Funds into my Government Regulated Trust Account.