Purchasing
When you are ready to purchase a property, be it:
- vacant land to build
- an established “dream home”
- an investment property
- a beach house for family vacations
- commercial premises
Contact me BEFORE you sign a contract, so you can receive independent advice to protect your interests, relating to:
Contract conditions
I can advise and assist in contract clauses that will protect your interests. Remember, should things not go as planned, everything comes back to what is contained in the contract. So, it’s best to ensure the contract covers you and your unique situation. Don’t be talked into not including a condition in the contract as an ‘inducement to secure the Vendor’s acceptance”. Such a decision can backfire.
Contract conditions to be considered:
- Finance – If you require finance from a lending institution, the contract must be made “subject to finance”.
- Pre-purchase inspection – This is not a standard clause in South Australian contracts and therefore this needs to be included specifically if you wish to inspect the property before settlement occurs
- Sale and/or settlement of an existing property
- Building and/or Pest Inspection
- Any works to be completed by the Vendor prior to settlement
- Consider any specific items to be included/excluded from the sale. Is the dishwasher included? Don’t assume, ask the Agent/Vendor and have non-standard items specified in the contract to avoid any misunderstandings.
Form 1 & 'cooling-off'
You have already signed a contract to purchase a property. Has your 'cooling-off' period finished? Your cooling-off commences when the contract has been signed by all parties AND you have received a correctly prepared Form 1. A Purchaser’s right to cool-off is required under the Land & Business (Sale & Conveyancing) Act 1994 and is independent of any contract conditions. The Form 1 is a disclosure statement signed by the Vendor and provided to you, the Purchaser. It will advise you of such things as:
- Any mortgages, easements and encumbrances registered on the Title.
- Council approval for any developments on the property that have conditions still applicable, eg. land division applications or approval to build a second dwelling, shed or carport.
- Any government notices issued against the property, eg. environmental protection, heritage listing, fences, etc.
If you wish to cool-off, you are required to provide written notice to the Vendor, specifically in the manner as set out in the Form 1. I am happy to advise you on providing notice of your right to cool-off. You are not required to provide any reason for cooling-off.
A cooling-off period does not exist for a Purchaser in the following circumstances:
- you have waived your cooling-off rights by receiving independent legal advice and provided a certificate from your legal practitioner stating to that effect;
- the sale occurs at the auction of the property;
- the sale occurs following the auction and you bid at the auction;
- you are purchasing the property as a company;
- the purchase is part of a purchase of a business; or
- in certain circumstances where the sale involves a tender or option to purchase.
It is critical you understand your rights in relation to cooling-off. Please contact me as soon as possible after receiving the Form 1 so I can provide you with independent, professional advice. You can meet with me at my office or I can come to you or you can email or fax the Form 1 and I will phone you to discuss it.
It is also a good idea to contact the local Council before your cooling-off concludes to enquire about any current or future plans for the area in which you are purchasing.
Encumbrances
Is there an encumbrance currently registered on the Title or are you required to execute and register a new encumbrance and pay the associated fees? If so, I will read through each clause of the encumbrance and advise you what it all means and if any costs apply.
First home owners
I will advise you of all of the above issues, but I also understand that being a first home owner (FHO) can seem very daunting. I will assist you through every step and explain in plain terms what the process is.
Insurance
Standard SA contracts provide that the property is at the risk of the Purchaser from the date of the contract. I advise that you arrange building insurance cover from the day of signing the contract (if purchasing a Strata Unit, it is not necessary to take out building insurance as this is paid directly by the Strata Manager).
Forms of ownership
I will discuss with you your options about forms of ownership and provide an information sheet. You may also wish to discuss with your accountant if there may be tax benefits in owning property in a certain way. This may be particularly applicable if buying an investment property. Property can be owned by one person, which is called Sole Ownership, or by two or more people, for which there are the following two different types of joint ownership:
- Tenants in Common: A Tenant in Common is often used where the buyers of the property are friends, business associates or relations and they have pooled their funds to purchase the property. Married couples may also own property as Tenants in Common. Tenants in Common may hold property in equal or apportioned shares to reflect each owner’s contribution. Upon the death of one proprietor, that person’s interest will vest as per the deceased proprietor’s Will or Letters of Administration.
- Joint Tenants: Joint Tenant ownership is more commonly used by married/defacto couples. Joint Tenant’s each have an equal interest in the whole of the property and upon the death of one owner, the survivor is automatically entitled to become the owner of the deceased’s interest in the property.
Costs
In our initial conversation I will detail all your costs, including stamp duty, transfer registration fee, government searches, Conveyancing fee, etc. Prior to settlement I will provide you with a statement, detailing all costs, adjustments, the amount of funds provided by your Lender and the final balance you are required to provide. I will explain how these funds can be provided to my Trust Account before settlement occurs. I will ensure your Stamp Duty and Transfer Registration Fee and any other costs are paid on your behalf.
Stamp Duty Calculator - click to calculate the Stamp Duty payable on your conveyance, powered by Revenue SA.