The process of transferring property can be complicated, especially if you’re a first-time buyer. Property transfer or conveyancing involves some key legal factors to consider. Understanding these factors will give you some much-needed handles. Here are seven legal factors to consider while conducting your property transfer.
The contract for sale is an important legal document. It outlines the transfer rights and obligations for both the seller and the purchaser. The contract of sale will include aspects like:
Purchase amounts can come with certain stipulations. According to Law Firm Parramatta, the transfer of property from one family member to another requires a valuation that’s no older than 6 months. The contract of sale is always signed by both parties and each party holds the identical contract. The contract of sale document should always be drawn up by a conveyancing expert. This way you won’t be in for any nasty surprises.
The contract of sale generally requires an agreed-upon deposit to be paid by the purchaser. The deposit is usually 10% of the purchase price and is held by the estate agent or the conveyancer. The deposit amount is typically suggested by the vendor or conveyancer.
The buyer generally isn’t responsible for any damage before the settlement takes place. Most lending institutions, however, require proof of building insurance to finance the property in question. Insuring the property before the transfer is a prudent step to help guard against risk. In the event of any damage dispute, knowing you have coverage is great.
Buyers have the privilege of enjoying a cooling-off period. It affords the purchaser protection by allowing them to withdraw from the contract under specific circumstances. Cooling-off periods don’t apply to sales at auction. The cooling-off period is a good time to conduct thorough property inspections. This way buyers can enjoy peace of mind throughout the buying process.
The purchaser’s conveyancer will prepare the transfer document. The purchaser must sign this. Any registration fee or stamp duty payment also requires payment at this point. Once the buyer signs this, it is sent to the vendor’s conveyancer for signing. The transfer document will then be stamped as this is required before settlement.
At the time of settlement, certain adjustments are made. This is to make allowance for factors such as upfront council rates. In this instance, the purchaser may need to pay the vendor for a portion of the rates. Other factors such as land tax and body corporate contributions are also under consideration.
Settlement day occurs when the purchaser provides the agreed-upon cash amount to the vendor. A final search will be conducted by the purchaser’s conveyancer to ensure that no title restrictions are in place. The conveyancers usually meet up in person to hand over the title deed. This marks the end of the conveyancing process and the proud new owner can enjoy their new property.