Conveyancing is simply the word used to describe the process involved in the transfer the legal ownership of the land or real estate from one person to another. The contract is the legal document which sets out the information about the property and the terms on which you are buying or selling.
Before buying, make sure you obtain a strata report which should tell you:
If you are buying at auction it is imperative that you are prepared and have undertaken all your “due diligence” by obtaining pre-purchase reports and negotiating any changes to the contract with the vendor. On auction day, if you are the successful bidder, you do not have a ‘cooling off period’ and are bound by the contract signed by you.
You should ensure that you have written unconditional loan approval from your bank or lender because you cannot change your mind later if you cannot find a bank who will lend the funds to you.
If after auction, you seek to withdraw from the contract, you will likely lose the 10% deposit and may need to pay damages to the vendor.
You should contact A & T Legal for a contract advice at least a week before auction. We can assist you to obtain all pest and building reports or strata reports if required. We can provide you with an advice on the contract and negotiate any changes to the contract required before auction day.
Buying off the plan means the property is being advertised for sale before it has been built.
This is different from buying a property that is already built and the risks and considerations compared with other property purchases are much more involved.
For example, say a developer buys a block of land and obtains approval to build 20 units on the land. To minimise his risk, the developer can “sell” the units as planned before constructing the actual building. The Purchaser enters a contract with the developer on the basis that the developer will do its best to construct the building, and when it is successfully built, settlement of the purchase will follow.
Usually, the developer has a limited time (up to about 3 years) to have the building constructed and approved.
PLEASE CONTACT A & T LEGAL FOR A QUOTE FOR AN OFF THE PLAN PURCHASE ON 02 9186 2533 as the contracts in these matters are detailed and complex and you should always seek advice on your obligations for these types of purchases.
Please contact A & T LEGAL if you are purchasing through your SMSF. You will need to provide us with a copy of the fund’s trust deed and you should ensure your lender/bank advises you the entity that is required to be named in the contract for sale.
In NSW you must have a contract prepared before your property is placed on the market for sale. The Contract must contain prescribed documents as set down in legislation.
We are generally are able to have a marketing contract completed, to enable you to list the property, within 24-48 hours. We use electronic contracts & therefore we can email the contract to you for approval and then email it to your agent to enable them to list the property.
From 29 April 2016, properties sold with a pool must have one of: a ‘relevant occupation certificate’; a ‘certificate of compliance’; or a ‘certificate of non-compliance’, issued from the NSW Swimming Pool Register.
This means that from 29 April 2016:
The owner of a property with two (2) or fewer dwellings and a pool must have a certificate of compliance before entering into a lease.
You will need to complete the front page of the contract for sale which shows whether you are buying as joint tenants or tenants in common.
In NSW the cooling off period allowed under a standard agreement to purchase property is 5 business days during which buyer can walk away from a legal agreement to purchase a residential property.
The cooling off period is, in theory, a grace period for the buyer to evaluate if the property is the right one for them. It allows a buyer to obtain pre-purchase reports, obtain approval for finance and advice on the contract terms from your solicitor. If you then decide the property is not for you and cancel the contract during the cooling off period, there is nothing that the seller can do.
Buyers who do this will usually have to pay the seller a small termination fee, which is often around 0.25% of the purchase price of the property. Any deposit above this will commonly need to be refunded.
There are two major exceptions to mandatory cooling off periods:
If you are required to waive the cooling off and be bound to the contract immediately you cannot then change your mind or you will risk losing your full deposit and paying damages to the vendor. Please contact A & T LEGAL to discuss the contract and your rights as to cooling off on (02) 9186 2533.
Exchange is the process by which a vendor and purchaser agree to the contract conditions under which a property is being sold and they hand to each other the signed Contracts for Sale. At or before exchange the full deposit must be paid as directed by the vendor. You should not exchange unless your finance is approved unconditionally and all reports or certificates are received.
The contract conditions note that the vendor must do everything reasonable to enable the Purchaser to have the property inspected to obtain any certificates or reports reasonably required. We always recommend building, pest and strata reports are requested before exchange or during the cooling off period.
Settlement is the day on which completion of the transaction is scheduled to occur.
When you sign the contract, you should pay attention to the date on which settlement is to complete. If you later need a change of that date, you can ask the other party to agree. While both parties may agree to change these dates, it is not always possible to reach agreements to change.
You can negotiate a specific date for settlement before exchange if you need to to make settlement more convenient for you but you must do this before exchange so it can be agreed in writing on the contract.
The major factors which will affect the fees are the amount of non-routine conveyancing work required, if any. Examples of non-routine work (not covered by our fixed costs professional fees), include, but are not limited to: a variation in any of the terms of the contract including price, date or other variations; a caveat being registered on the title to the property; you being a cash buyer and requiring registration of the title; the vendor or you obtaining a licence agreement concerning occupation of the property after completion (in the case of the vendor) or before completion (in your case); the completion date being delayed: a delayed completion is not usual and therefore the legal work required between the completion date specified in the contract and the delayed date of completion is not routine conveyancing work; the vendor issuing a notice to complete; obtaining a GST ruling in relation to the transaction; a dispute about the amount of stamp duty payable; breach of the Contract for Sale of Land by you; breach of the Contract for Sale of Land by the vendor; you require Foreign Investment Review Board approval to purchase the property; extensive negotiations with the vendor or its representative concerning the draft contract submitted by the vendor. (A single letter to and from the vendor or its representative is not extensive negotiations and is the normal matter.); extensive work and liaison with the bank or lenders; Organising or advising on Government Grants, Stamp Duty concession applications and the like; you rescind the contract pursuant to cooling off rights or for other legitimate legal.
Disbursements are the fees which A & T LEGAL pay or are liable to pay to others on your behalf. These include searches ordered to ensure that the property is cleared from all outstanding charges or agents fees to attend to paying stamp duty on your behalf or checking the title search on the date of settlement to ensure good title is passed to the buyer.
Disbursements will vary depending on the type of property and location and whether you are buying or selling. Please contact us for a full quote and a list of expected disbursements required in your matter.