FOR PURCHASERS
FOR PURCHASERS
Examine the contract and other sale documents
After you have done all your searching and think you have found a property, the first thing to do is engage a Conveyancer to peruse the contract and other relevant documents. The principle of buyer beware applies to land contracts. This means that particular caution should be adopted by Purchasers and that expert advice should be obtained regarding the range of certificates that may be relevant to a particular property.
If you are buying a property, the very first step before you sign any documents is to ensure that you have what is known as a “Section 32 Statement” or “Vendor’s Statement”. Named so after s 32 of the Sale of Land Act 1963 (Vic), this is a disclosure document that must be given to a Purchaser prior to signing the contract. It must contain specific information about the property being sold (such as information on easements or covenants, building approvals within the last seven years, and rates and charges that effect the property).
The Vendor is not obliged to disclose every detail that a prospective Purchaser may wish to know, their obligation is to fulfil the requirements of the Act, no more. Seeking the advice of an experienced Conveyancer can ensure that your expectations are realistic regarding the information to be contained within this statement. If necessary, your adviser can then assist in obtaining any additional documentation.
Once you have come to a basic agreement and the Section 32 Statement has been produced, a deposit is usually paid. If you are applying for finance, you should ensure that any final contract is conditional upon the approval of your finance.
Examine the property
You should have the property measured to ensure that boundaries and size are both accurate and, determine the availability of services. Also, and importantly, you should check the property for any structures that may have been erected without approval, for any defects or problems with existing structures and for any general features of the surrounds that may cause surprise after settlement.
Cooling Off
In select instances, legislative provisions require a cooling off period after the Purchaser signs the contract,. The cooling off period means that, after signing the contact, the Purchaser may “within three clear business days” give notice that they wish to terminate. If this notice is properly completed and received by the Vendor or their agent, no contractual penalty can be imposed. There are a number of restrictions on the applicability of the cooling off period. For example, the provisions do NOT apply if the:property was bought at Auction.
Your Conveyancer can advise whether you are eligible to invoke this option.
Between signing and settling
This stage of the process is generally conducted “behind the scenes”. It involves the acquisition of all necessary documentation, certificates, forms and conduct of final inspections. These tasks are usually completed by your Conveyancer, however, you may be required to answer specific queries, or give instructions where circumstances demand it.
Settlement
The final step is the settlement at which time the Purchaser takes possession of the property and the Vendor (or their agent) receives payment – usually in the form of a bank cheque. A specific settlement date is usually referred to in the Contract of Sale. Settlement involves the presentation of all documentation required to transfer the property from the vendor to the purchaser. Good title must be formally established (using documentation already acquired), and documents required to Transfer the property out of the Vendor’s name and into the Purchaser’s name are exchanged. At this point, the settlement is deemed to have been effected.
Whether you’re looking to purchase your first home, a new home, downsizing, or expanding your place of business, MLM Conveyancing has got you covered from start to finish.
9 Penarth Court, Craigieburn VIC 3064
PO Box 509, Craigieburn VIC 3064
