Buying a home is the biggest purchase most people ever make. Most transactions go smoothly, but when something goes wrong it can mean real stress and financial loss. Here are our conveyancing lawyers’ tips to help you reduce the risks.
Have the contract reviewed before you sign
Before you sign the contract or bid at auction, have the Contract of Sale and the Section 32 Vendor Statement reviewed by a lawyer. Compared with the price of a home, a contract review is a small cost, and it is the best chance you have to spot problems and ask for changes while you still can. Find out more about our contract of sale and Section 32 review.
Inspect the property
Look closely at the property during inspections. Watch for borer, termites, cracks, mould, water stains, dampness, crumbling grout and rotting weatherboards. Consider the age of appliances such as heating, cooling and the hot water system, and the condition of decks and paving. Think about the soil in the area and the type of foundations, for example whether a waffle slab might limit future renovations. A building and pest report can answer many of these questions.
Check the boundaries
Compare the property against the title plan to make sure the land is what you expect. For a freestanding home, look at where the fences sit. For a unit or apartment, check the plan of subdivision so you understand which parts are your lot and which are common property. If something doesn’t look right, ask us before you sign.
Arrange finance before you sign
Have your finance approved and in place before you sign. If you buy at auction there is no cooling-off period, so the contract is binding as soon as it is signed and you must pay the deposit and the balance even if your finance falls through. If you can’t complete, you are likely to lose at least your deposit. If you are buying by private sale with a finance clause, act well before the approval date in the contract.
Check for building and renovation limits
If you plan to demolish, build or extend, check with the local council about planning controls, including any heritage or vegetation overlays. Check the title for easements or covenants too. A single dwelling covenant may prevent you from building two homes, and a water authority easement may stop you from building over part of the land.
Buying at auction
At auction you sign the contract and pay the deposit straight after the hammer falls. Most private sales of residential property come with a cooling-off period of three clear business days after signing, but cooling off does not apply to auction purchases or sales within three clear business days either side of an advertised auction, to property used mainly for commercial or industrial purposes, to land over 20 hectares used mainly for farming, or where the buyer is an estate agent or a company.
So do your checks before auction day and make sure your deposit funds are ready. There are only limited circumstances in which you can get out of an auction contract after signing, and they usually involve a dispute with no guaranteed outcome.
Request a quote for a contract review
Send us the proposed contract and Section 32 statement through our online contract review form, and tell us your signing or auction date. We will quote the fee and confirm the timing before you engage us. If the deadline is close, call us on (03) 9629 2211 first.
For more step-by-step help, see our buying a house checklist and selling a house checklist, or visit our conveyancing lawyers page.
This article provides general information about the law as described above. It is not advice on your circumstances. Laws, procedures and deadlines can change, so please get advice about your matter, particularly before signing documents or where a deadline may apply.
