Thinking of buying a residential property?
Before buying a property, we recommend that you should obtain a Building & Pest Inspection Report for a House while a Strata Inspection Report for a Unit / Apartment.
Building & Pest Inspection Report
You will see comments and recommendation about places that require replacement/ ratification.
You will also see comments about the potential risks of pest infected areas of the building.
Strata Inspection Report
You will read the Annual Meeting Report of the Owners Corporation and see if there were any issues about the building.
A surplus in Administrative Work Funds and Capital Work Funds is a good sign.
You will also see the budget forecast for strata levies so that you have a better idea of how much strata levies you are going to pay in future years.
Before signing a Contract You should have already had loan pre-approval from Banks or Mortgage Brokers. Besides, you should have prepared enough savings for stamp duty, disbursements and adjustments. Alternatively, you can purchase the property using cash.
Fees that you might need to consider:
Disbursements usually include the following:
Property Searches Fee;
Title Registration Fee;
4.Adjustments: On the day of settlement, the following fees will be adjusted proportionally and added onto the balance of purchase price of the property:
Contract Exchange If the purchase price is agreed, the Selling Agent will provide a Sales Advice to the Vendor’s lawyer. Both parties’ lawyers negotiate and make changes to the Contract. Buyer signs the Contract and pays full 10% deposit. The Contract is then delivered to Vendor’s lawyer. Contract only becomes legally binding after the Vendor also signs and send it back to the Buyer’s lawyer.
Stamp Duty You need to make stamp duty payment to the responsible State Revenue department before a certain deadline (Generally within 3 months from the date of Contract Exchange). This payment can be made by either Bpay or paid into Lawyer’s trust account. Settlement and completion Most of the settlements are now complete through an online workspace – PEXA. The settlement process is more flexible and convenient than that in the past when settlements were complete by paper and bank cheques.
If settle by Finance, the Mortgage Bank representative will link the loan funds available to PEXA. You need to make sure that there are enough funds in your shortfall account for completing the settlement. You will be notified once the settlement is complete.
Title Document Registered On the day of settlement, the title of the property will also be transferred to your name. The Certificate of Title will be kept by your Mortgage Bank if you are buying the property using bank loan. Otherwise, the Certificate of Title will be posted to your lawyer’s office for your collection.
Disclaimer: This publication is intended to provide commentary and general information. It should not be relied upon as legal advice. You should seek formal legal advice in particular transactions or on matters of interest arising from this publication.