Buying your home

//Buying your home
Buying your home 2018-02-26T22:20:20+00:00

Buying a property is an important decision. It is often the biggest financial decision you can make so you should really do your homework !  We can help ease your stress by offering advice before and throughout the process.

Click on the tabs below to view information about each stage of the process ..

“Private Treaty” is where a vendor prepares a contract and then negotiates with prospective buyers normally via a real estate agent.

Once the terms of your contract have been negotiated, your deposit (normally 10% cash) is paid to the agent and your contract is exchanged (your signed copy is exchanged for the vendor’s signed copy).

Before your cooling off period expires (or before exchange if you have waived your cooling off rights) you will need to:

  • complete your pest and building reports (if required);
  • complete your survey and received your building certificate from Council (if required);
  • received confirmation from your lender that you have unconditional finance approval – the bank has completed its valuation and the mortgage insurer has approved your application (if required).

Any issues that arise in your physical inspections may have a major influence on whether you proceed with the purchase.

Normally purchasers have a 5 business day cooling off period from the date of exchange. During this time you may elect to cool off for a variety of reasons, for example:

  • you change your mind about the purchase;
  • your inspections have discovered problems with the property; or
  • your finance has not been unconditionally approved.

If you decide to cool off you must pay a penalty of 0.25% of the purchase price to the vendor.

Note that it is quite common for the vendor to demand that you waive your right to cool off before they will exchange, for example, where you are in competition with another purchaser. If you do waive your cooling off period, the contract will be immediately binding on you even if you have not received finance approval or negotiated the correct terms and the contract is unfair to you.

Important: You only get a cooling off period when buying residential property. Commercial property and some other purchases do not qualify.

Once contracts are exchanged the contract period (usually 35 or 42 days) commences.

During this time you will need to sign your mortgage documents with your lender, arrange for your new utility accounts, home insurance and start packing !

We discuss, conduct and review property searches with you, assist your lender in preparing for settlement and attend to payment of stamp duty.

Shortly before settlement we send you settlement figures showing the rates adjustments, lender’s funds and our invoice. If you are not borrowing the full purchase amount this is the time we need your additional funds placed into our trust account in readiness for settlement.

On completion the balance of the purchase price and other adjustments are paid to the vendor who, in return, hands over the Certificate of Title and other important documents required to transfer the property into your name.

Your lender lodges these documents for registration with the Land Titles office and will hold your Certificate of Title until your mortgage is paid out.

We attend to completion  on your behalf (no you don’t need to be there!) to ensure that title documents we receive from the vendor are correct and ensure all funds required to complete your purchase are passed to the vendor and we confirm settlement with you soon after.

Buying a strata property is much like a buying a normal suburban property. When your purchase is completed you become a member of the strata owners corporation and can participate in decision making which affects the entire strata development.

In an off the plan purchase the contract will contain plans, specifications and other information about the property you are purchasing which is still to be constructed.

There are no physical investigations available at the time of exchange and finance approval may be difficult to obtain (depending on the proposed construction period) as the market value of the future construction is too difficult to determine.

Off the plan purchases have no fixed contract period. Rather than a fixed date, settlement is dependent on completion of construction. The developer will notify us that construction is complete and settlement normally takes place 14 or 21 days later.

During this time you will need  to sign your mortgage documents with your lender, arrange for your new utilities accounts, home insurance and start packing !

If you are successful at auction you will be required to exchange contracts immediately and pay your deposit.

It is important to note that you do not get a cooling off period when purchasing at auction. Even if the property is passed in and you enter into a contract with the vendor on the same day as the auction you do not have the benefit of a cooling off period.

This means that before you attend the auction you will need to:

  • complete your pest and building reports (if required);
  • complete your survey and received your building certificate from Council (if required);
  • received confirmation from your lender that you have finance approval and advise your lender that you intend to purchase at auction.

PEXA is the new electronic settlements workspace and we are pleased to be able to provide this service to you.

Electronic settlements don’t require physical settlement meetings, cheques or paper transfer documents. This means that they are more reliable, funds transfers are processed directly into or from your accounts.

You can follow your settlement process online via the SettleMe online tracking tool.

Go to SettMe

Title Insurance is a specialised insurance which provides protection again certain unknown and hidden risks when purchasing.

Click on the links below to download information brochures about this product.

Third party prices above are subject to change without notice.

Stewart Title – 5 Reasons – NSW

Stewart Title – Home Buyers

Stewart Title – Strata

Prices for a title insurance policy start from $236 (strata) and $335 (non-strata). This is a one-off premium payment and the policy lasts for the life of your ownership of the property.

With the advent of electronic conveyancing settlements via the PEXA platform, two fee levels apply:

  • Standard PEXA purchase from $1,250.00 (incl. GST)
  • Standard non-PEXA purchase from $1,500.00 (incl. GST)

Additional Work for fixed Professional Fee – if required

  • Licence for early occupation from $220.00 (incl. GST)
  • SMSF or Trust purchase (excludes stamp duty and Deed registration fees) from $880.00 (incl. GST)

*Our fixed fee offer relates to our professional fees to carry out the work. It does not include disbursements and search costs because these will depend on the individual property and circumstances of the transaction. We are able to give an estimate of your search costs after some initial investigation about the property in consultation with you.

*Our fixed fee offer includes all professional work reasonably required to complete a single lot Torrens title transfer or single lot Strata title transfer including liaising with your lender (this work is outlined in our costs agreement). Where additional work becomes necessary to complete your transaction we will provide an updated costs estimate before commencing the additional work. 

There are a range of additional searches and investigations that we recommend (or your lender may require) as part of your purchase. These include a mine subsidence certificate (for properties in an affected area), strata levies certificate (for strata purchases) and a title insurance policy. We discuss these searches with you and order those required.

Some typical costs for disbursements

  • Local Council and Authorities searches from $200.00
  • PEXA transaction fees/Settlement Agent’s fee from … $110.00
  • Strata Certificate (strata purchases only) from $119.90
  • Mine Subsidence Certificate (mine subsidence areas only) from $73.20
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