Conveyancing is the process of transferring the legal title of real property from one party to another. Buying or selling property is one of the largest transactions most people will be involved in during their lifetime. There are a lot of steps in the conveyancing process where things could go wrong so it is important that you engage competent legal professionals to deal with the transaction.

Whether you are buying or selling, our lawyers can assist with advising on and negotiating the terms of a contract for sale. If you are buying or selling an investment property, there will likely be taxation implications that our lawyers can explain to you.

Our firm is registered on PEXA for electronic settlement to make the process as simple as possible.

Purchasing a property

Before you start

It is important to make sure that your finance is organised, and you know how much you can borrow before signing any contract for the purchase of a property. If you exchange contracts and are unable to complete a purchase, you may lose your deposit and become liable for the difference in any future purchase price obtained.

Make sure you read your loan documents thoroughly, from the pre-contractual statement which outlines the fees and charges that apply, to the actual mortgage contract itself. Remember you are entitled to legal advice and are under no obligation to sign anything on the spot.

Pre-purchase inspections

If you are purchasing, you need to know exactly what you are getting. We can help you obtain the appropriate searches and advise you on what those searches mean. We usually recommend obtaining a pre-purchase building inspection report and pest inspection report. These are written reports about the condition of the property that flag any potential problems. You may be able to use this information to negotiate a reduction in the purchase price.

Making an offer

If you are happy to proceed, you can make an offer. You might be asked to pay a small sum as an initial deposit, but this is refundable if you do not end up signing the contract. It does not mean that the property is yours yet either, as the agent can take other offers.

Signing the contract

If your offer is accepted, please bring your contract to us so we can review it and discuss your situation. There may be terms that can be negotiated in your favour, and you need to be absolutely clear on your rights and responsibilities before signing. We will explain the conditions of the contract as well as the effect of any easements or restrictions registered on the title.

When you do sign the contract, you will need to pay the 10% deposit, unless a special condition provides otherwise. This is held with the real estate agent and is released to the seller after the property is settled. If you do not have a 10% cash deposit, we may be able to negotiate and organise a deposit guarantee instead.

Settlement

After the contract has become binding, there are a number of tasks to perform including:

• arranging payment of stamp duty
• liaising with your lender regarding the mortgage
• liaising with the vendor’s lawyers
• checking with various government authorities to see if they have a vested interest in the property
• checking to see if there are any outstanding debts to local council
• calculating adjustments for council, water, and strata rates, if applicable
• making final checks on the title
• attending to settlement through an online settlement platform known as PEXA

Auctions

If you are successful at an auction, you will need to exchange contracts on the day of the auction. There is also no cooling off period for auctions. After you exchange, you may be stuck with whatever terms and conditions are included in the contract at that time. For this reason, we recommend obtaining advice on the contract of sale and seeking any changes to terms ahead of the auction. Examples of common requested changes include variations to the length of the contract and the deposit sum required.

First home-owner grants

Depending on your circumstances, you might be eligible for a first home-owner grant. If you are looking to purchase your first home, our lawyers can assist with an application under the scheme. Depending on whether you are buying a new home or an existing home, you may be eligible for grants as well as reductions or concessions of stamp duty.

Loans and mortgages

When buying a home, most people will need to get a loan to finance the purchase. When lending money for the purchase of a home, a bank will require that you grant a mortgage over the property, so that the money loaned to you is secured. The terms of a loan agreement may vary, depending on your circumstances and the property. In addition, a bank may require that a loan be “guaranteed” by somebody as well as requiring the mortgage over the property. We recommend obtaining advice from one of our experienced lawyers prior to entering into any loan agreement to ensure that you know exactly what your obligations are.

If you are struggling to meet your repayments, you might need to refinance an existing loan.  If you need assistance with a refinance, our lawyers are able to assist.

We are experienced conveyancing and property lawyers and have assisted many buyers, purchasers, investors and developers with their conveyancing and property related matters.

If you need any assistance, contact one of our lawyers at [email protected] or call 02 6686 4233 for expert legal advice.