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The First Step It is important that once you have found a property you wish to buy you seek legal advice before signing the Contract of Sale. The purchase of property is one of the most significant investments you will make. O’Farrell Robertson McMahon offers a highly skilled and experienced conveyancing department which will assist you in all aspects of this important transaction. Following is a general description of the main features of buying a property of which you should be aware. If you have signed a Contract of Sale without first obtaining independent legal advice, and in the absence of any of the other exceptions listed on the front page of the Contract, then you have three clear business days in which you can withdraw from the Contract with minimal penalty. If you find yourself in this situation it is very important that you seek legal advice during this three day period. Vendor's Statement & Contract of Sale
Section 32 of the Sale of Land Act requires that certain information relating to the property must be provided by a vendor to a prospective purchaser prior to signing the Contract of Sale. This information is presented in the form of a Vendor's Statement (also called a Section 32 Statement) which is usually contained within the Contract of Sale. The Vendor's Statement should contain the following information, where applicable:
The Contract of Sale sets out the technical details of the property and the parties involved in the purchase. The document also sets out the general conditions of purchase and incorporates conditions which are prescribed in legislation. The vendor may insert special conditions into the Contract of Sale (e.g. that the purchase be wholly responsible for forthcoming council kerbside improvements). These conditions are particularly important as they are specific to the property being purchased and may override any other condition contained in the Contract. It is extremely important that you fully understand and agree with what is set out in the Vendor's Statement and Contract of Sale before you sign these documents. O'Farrell Robertson McMahon can advise you on these documents to ensure that you make an informed decision. Once the Contract of Sale is signed it must be exchanged with the other side. There are a variety of ways this can occur but the end result will be that the vendor and yourself, or your respective solicitors, will hold identical contracts with at least the other party's signature on them. The deposit must be paid at the same time as exchange occurs. The Contract of Sale will show how much the deposit is and to whom it is to be paid – generally the vendor's Estate Agent or Solicitor. Once the Contracts are signed and exchanged both parties are bound to complete the transaction. The only way to withdraw from the purchase will be in accordance with the terms of the Contract. In addition to the information provided by the vendor, we will also conduct our own searches and enquiries to obtain information relating to the property. These searches are very important as they often provide very relevant information in relation to the property such as future highway developments, as well as the detailed financial information required to determine the final purchase price (see adjustments). In Victoria there are a variety of government charges which are payable. The State Revenue Office levies Stamp Duty on various dealings, including transfers of property and mortgages, which are based on the value of the property or amount of money secured. The Land Titles Office charges Registration Fees for recording each dealing on the Certificate of Title to the property. First Home Buyers and Concession Card holders are among those people who are entitled to various types of assistance, exemptions and discounts. If you would like more information about these initiatives please contact O’Farrell Robertson McMahon’s conveyancing department. Council and Water Authority rates are levied on each property on an annual basis. Because the rating period is unlikely to coincide with the settlement date for your property, any amount which is paid or which remains owing to the rating authority must be factored into the final amount payable at settlement. Generally you will not be required to attend settlement and your solicitor will attend on your behalf. At settlement the balance of purchase money will be exchanged for the documents necessary to register you as the new owner of the property. Once settlement has occurred we will attend to your registration as the new owner and also notifying the relevant authorities of your purchase. FOR FURTHER INFORMATION ABOUT BUYING PROPERTY PLEASE CONTACT RUSSELL ROBERTSON, MARK O’FARRELL OR ROBERT COLE.
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