Fact Sheet 1:
Purchase of Home or Strata
By law the Vendor must provide you with a draft contract upon request when a residential property is being sold by auction or by private treaty.
If you are interested in a particular property we will review the draft contract at no charge. All we ask is that you use our firm when you find the right property.
Here is a useful checklist of matters to consider prior to auction/exchange. We can help you with each of these steps:
|•||Does the vendor have an up to date Survey?|
|•||Is there an up to date Council Building Certificate?|
|•||Is the Drainage Diagram accurate?|
|•||Do you need us to arrange an independent Building Inspection?|
|•||Do you need us to arrange an independent Pest Inspection?|
|•||Do you need us to arrange a Strata Records Inspection?|
|•||Have you checked possible future road development in the vicinity with the local council (for minor roads) and the RTA property section (Tel 131 782) (for expressways and major roads)?|
|•||Do you need special council approval for your proposed use of the property?|
|•||Do you have unconditional loan approval? [If not we may be able to introduce you to some helpful contacts.]|
|•||Have you enquired with Council’s town planning department about future development in the area?|
You are not legally bound until you have exchanged signed contracts or unless you are the successful bidder at auction. Normally you are required to pay a 10% deposit on exchange, although vendors frequently accept a deposit of 5%. The deposit does not need to be a bank cheque. If you do not have ready access to a deposit you may be able to use a deposit bond. At exchange we swap your signed contract for the contract signed by the Vendor.
After exchange we make a series of enquiries with both the vendor and with various government departments. We also communicate with your mortgagee.
Unless you are a qualifying first home owner, stamp duty will be payable prior to settlement. Stamp duty is calculated on a sliding scale based on the purchase price. We can estimate the stamp duty for you or you can use the calculators on the Office of State Revenue Website (www.osr.nsw.gov.au).
At settlement (also known as “completion”), the vendor hands over the certificate of title and transfer in return for the balance of the purchase price. We will attend settlement on your behalf and if you had borrowed part of the purchase price we also arrange for your mortgagee to attend. Normally you do not need to attend settlement. If you are moving on the day of settlement, we ensure the agent is instructed to release the keys to you as soon as settlement has taken place.
After settlement the title documents are lodged at the Office of Land and Property Information (formerly known as the Land Titles Office) for you to be registered as the owner. Following registration a new certificate of title will be returned to us for storage in safe custody on your behalf, or if you have borrowed some of the purchase price, the certificate of title will be issued to you mortgagee who will retain it until the loan has been repaid or the property sold.