Selling or buying property

Some of the things you need to consider.

Name or names to purchase the property in?

  • The contract should state full legal name as per birth certificate or passport, including any middle names.
  • Buying sign a contract while partner away? Act as their agent, state in the contract. Example Toni Ann Smith and Toni Ann Smith as Agent for Jerry Smith.
  • Buying a property for Superannuation Trust or Family Trust, the contract should state the full names of the trustees as per the Trust Deed prepared by a solicitor.  Example: John Mathew Dodds & Marie Dodds as trustees for the Dodds Family Trust.

 Deposit shows good faith, how much, it’s negotiatable? 

  • Depending on the amount paid for the property pay between $5000 to $10,000.
  • Deposit held by the Real Estate Agent or Seller’s Settlement Agent.  Held in a non interest earning trust account until settlement.

 Finance approval how long does it normally take?

  • Most lenders can provide approval letter within 21 days of acceptance of contract.  Self-employed will need more time 30 days, lender requires 2 years Tax returns.  

Settlement Date… waiting on finance approval ?

  • Most Banks can settle 21 days from finance approval.  If the lender is based in the eastern states you may need up to 28 days.

Inspections check Structural, Termite, Electrical, Pool, and Bore who pays?

  • Buyer pays for the inspections.  Wording in the contract will usually state the seller has option to repair structural and safety issues and treat live termite.  However if the  seller is unwilling the buyer can withdraw and deposit is returned.  If the property is over 15 years recommend inspections be done before finance approval.

Duty (stamp duty) to Office of State Revenue who pays and when?

  • Buyer pays the Duty.  Duty will be collected and paid to the Office of State Revenue at settlement.

Residual Current Devices and Smoke Alarms

  • Current legislation requires the property complies and have two RCD’s and hard wired smoke alarm(s) at settlement.

Move out Move in

  • If seller lives in the property, they are entitled to stay until 12 pm the day following settlement to move out,
  • If the seller decides to move out early and agrees to you moving in after they have confirmation settlement has taken place, arrange your removalist after 3pm, as settlement may not take place until 2.45 in the afternoon.

Property over $750,000

  • Seller has to obtain a ATO clearance certificate before settlement
  • If no clearance certificate provided at settlement the Buyer’s Settlement Agent MUST pay 12.5% of the sale price to the ATO at settlement.

Your First Steps To
Buying Your Home

Buying a home it's your dream
Turning this dream into a reality is our passion at Oceania Settlements. This ebook aims to help answer some of your questions including:
 
  • Can I afford it?
  • What are the settlement costs?
  • When can I move in? 

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