After you have reviewed and finalised your contract, there are a few key steps that you need to take in order to successfully purchase your property.
Firstly, you need to finalise your finances so that you have the funds available to pay for your purchase. You will also need to engage a professional conveyancer who can help with the legal process of transferring ownership of the property.
Finally, once everything is in order, you will be able to settle on the property and take possession of the keys.
By following these steps, you can ensure that your property-buying experience is stress-free and seamless:
Choose a conveyancer
When it comes to choosing a conveyancer, it’s important to do your research and pick one that is right for you. Not all conveyancers are the same, and with such a significant investment at stake, you want to make sure you’re in good hands.
Buying property – whether you’re a homeowner or an investor – is a major financial decision, so you need to be confident that your conveyancer will handle everything smoothly and efficiently. Make sure to check that they are licensed and experienced, and that they have a good track record with previous clients.
The last thing you want is for things to go wrong during the settling process, so it’s worth taking the time to find a conveyancer that you can trust.
Investigate your conveyancer’s experience and reputation
A conveyancer is a specialist lawyer who helps to transfer ownership of land and property, and they are a vital part of the process.
However, not all conveyancers are created equal. It’s important to do your research and choose someone who is experienced and has a good reputation. Checking credentials and reviews is a good place to start, as this can give you an idea of what others have thought of their experience.
At Sargeants Conveyancing, we pride ourselves on our experience and excellent customer service. With our transparent fixed-fee service, digital convenience, and thousands of satisfied Australian clients, we can look after all your conveyancing needs – no matter how complicated.
Arrange pest and building inspection report
Before signing a contract it’s wise to obtain a building and pest report. These inspections, by trade professionals, can highlight any issues and save you time and money in the long run.
If you’re looking to buy at auction, a request for a pest and building inspection report must be organise before auction day.
Pay your deposit
The deposit amount is traditionally 10% of the property purchase price. However, it is possible to negotiate this amount through your conveyancer with the other side. The deposit is paid to the real estate agent who must provide you with a receipt for your funds.
The deposit is held in the real estate agent’s trust account until settlement and this amount is deducted from the total you require for settlement.
After settlement the deposit will be released to the seller once the real estate agent has received confirmation from seller’s conveyancer that the contract has settled.
A Holding Deposit – What to Know
This is a way for the buyer to show they are genuine in their interest to purchase the property. It is normally 0.25% of the property purchase price and is paid prior to any paperwork being signed. It is essential to realise that the payment of a holding deposit DOES NOT secure the property for you. Holding deposits are fully refundable up until contracts are exchanged.
Finance
Once you have found the perfect home and placed an offer that has been accepted by the seller, it is time to finalise your financing.
Whether you have been pre-approved for a loan or are just beginning to look into your options, it is important to notify your loan specialist as soon as possible. This will allow them to begin the process of approving the loan, and provide formal loan approval (or otherwise) prior to any ‘subject to finance’ date in the contract occurring and ensure that everything is ready in time for settlement. In addition, you will need to provide them with a copy of the contract of sale so that they can assess the value of the property. Once everything has been approved, you will be one step closer to moving into your new home.
When your finance has been approved, it’s time to give the green light to your conveyancer to proceed with the purchase of the property and provide them with your lender’s details and documentation. They will act on your behalf to let the real estate agent and vendor know that you are happy to go ahead with the sale.
It is important to make sure that all of the conditions of your finance and sale contract have been met before proceeding, such as pest and building inspection reports. Once everything has been checked off, you can move forward with confidence knowing that you are about to purchase your dream home.
Your finance is declined – what do you do?
If you loan application is declined, you can talk to a mortgage broker to investigate alternative loan options via other financial institutions.
If you signed the contract of sale ‘subject to finance’, it’s VITAL that you let your conveyancer know as a matter of urgency. Depending on the contract, if the ‘subject to finance’ date has not occurred, your conveyancer may be able to end the contract and organise the return of your deposit.
Sign your loan documents
Now is the time to talk to your mortgage broker or loan specialist to sign your home loan documents.
It is important to check with your conveyancing specialist or solicitor to confirm the date of your property settlement and also clarify what other fees might be payable when settlement happens.
Protecting your purchase property – home insurance
The vendor is responsible for any damage to the property up until the settlement date. After that you, the buyer are responsible.
To provide you with complete peace of mind consider insuring the property from the date the contract becomes unconditional.
Strata insurance
When purchasing a home that is part of a strata scheme, it is important to be aware of the need for strata insurance.
This type of insurance provides coverage for common property and buildings within the strata scheme. While it is typically the responsibility of the owner’s corporation to obtain this insurance, it is advisable to speak with a conveyancer or solicitor to ensure that all bases are covered. In some cases, additional contents or building insurance may also be necessary.
Reviewing an insurance policy thoroughly prior to purchase is always a good idea, in order to ensure that adequate coverage is in place.
Settlement
One of the most important things to consider when buying or selling property is the settlement period. This is the timeframe in which all legal and financial aspects of the sale must be finalised. Settlement periods can vary depending on the contract, but it is typically around 30-60 days.
It is important to understand your rights and responsibilities during this time, as well as the importance of regular communication with your conveyancer. There are many costs associated with settlements, such as legal fees, conveyancing fees, and stamp duty. It is important to budget for these costs ahead of time so that there are no surprises later on. With the help of a professional conveyancer or solicitor, you can ensure a smooth and successful settlement period.
The final inspection is an important step in the home-buying process. It is the last opportunity for the buyer to check that the property is in the same condition as it was when they agreed to purchase it. The conveyancing specialist can assist the buyer in checking for any issues with the property, such as damage or missing items. They can also confirm that all of the contract’s inclusions and exclusions are present. This is important to be done before settlement, as it gives the buyer peace of mind that they are getting what they paid for. If there are any problems with the property, they can be addressed before the buyer takes ownership.
Overall, the final inspection is a crucial step in ensuring that the buyer is happy with their purchase.
Keys for your property
Once settlement has been confirmed by all parties the real estate agent will release the keys to you.
Redirecting your mail
It’s best to finalise your redirection of mail (including payment) prior to settlement, as it can take several days to process. Also contact all important companies and utility services with your new address to minimise the period of time you need the redirection order in effect.
This article is provided for general information purposes only. Its content is current at the date of publication. It is not legal advice and is not tailored to meet your individual needs. You should obtain specialist advice based on your specific circumstances before taking any action concerning the matters discussed in this article.
