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GeneralWhat to know when Purchasing Property

What to know when Purchasing Property

Buying a home is an expensive but essential investment in your life. With proper research and plan, you will make a successful purchase. Also, exercise patience since most people borrow finance to buy a home. Some lending bodies like banks, credit unions, mortgage companies, and so on can lend you the money to start the process.  Whether you are planning to buy an investment home or an apartment, the following tips will help you begin.

Pre Purchase Inspections

Before you buy a property, ensure you inspect it thoroughly. When it comes to property, sale of land contracts do not cover the quality of the building. You will only get what you see like “Buyer Beware” and so on. Also, you can request for pest inspection in case of previous or current pest activity to the property. The building’s report will indicate any structural problems and how to go about them. Additionally, ensure electrical wiring and plumbing are functioning since the building inspection doesn’t cover them.

You will need strata report whether you are buying a unit, townhouse or villa. The statement sums up strata records inspection of the Owners Corporation. It also identifies insurances in place, three-monthly levies, special levies, problems with ongoing maintenance, and other noted issues

Contract Exchange

It is legal to exchange contracts when buying a property. Both the purchaser and the vendor gets an identical copy of the agreement for sale. Before swapping and exchanging the contracts, each party must sign them, and ensure they are up-to-date.  However, the deals may need some amendments such as the settlement period or deposit amount before exchanging. Most apartments for sale in Sydney will review the contract then discuss your necessities before starting negotiations with the vendor’s solicitor. Ensure you have unconditional approval of your finance before you exchange contracts. 

Cooling-off period

After exchanging contracts, for example, buying a property in NSW will involve 5 business days cooling-off period.  If you decide to withdraw from the contract and you were using cooling-off rights, you will pay the Vendor 0.25% of the acquisition price. Having section 66W certificate waives cooling-off right by binding the vendor and buyer from the exchange of contracts.  But, there is no cooling-off period if you buy a property at auction and exchange contracts the same day. 

After exchange

After every transaction of the property, there has to be a stump duty payable, and this involves the contract and transfer which is payable on or before settlement. Late lodgment might incur penalties of stamp duty. Your lease and transfer should be stamped on time. Prior to settlement, the precise amount paid to the vendor needs adjustments to include council and water rates, and strata levies. The calculation of these adjustments provides the total payable amount.

Conclusion

The final legal process, which is the settlement, involves the transaction conclusion whereby a title is transferred to you, and you get the keys. When it comes to apartments for sale in Sydney, the vendor, purchaser licensed by a solicitor, and discharging and incoming mortgages summarizes the whole process.

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