A property conveyancer will assist you when buying property. In most cases, conveyancers will deal with the legal aspects of purchasing the property. As such, the professional will conduct due diligence to ensure the property is legally registered. Besides, he or she will check zoning regulations and strata bylaws.
The contract of sale is probably the most important document when buying a property. It is an agreement that outlines the terms of sale as agreed by both parties. Read this extract to learn more about this document and how your conveyancer can help you draft and negotiate the document.
The contract describes the property on sale. Other than the location and title of the property, the seller should also provide a map with accurate property dimensions. It prevents the buyer from encroaching into the neighbour's property. The buyer and seller's conveyancer should also detail the items that are included in the sale. For instance, some appliances such as ovens and air conditioning systems could not be included in the sale.
Cooling Off Period and Closing Date
Cooling off is the period that the buyer can cancel the contract of sale without incurring any penalties. Cooling off periods will vary from state to state. Your conveyancer should help you negotiate the cooling-off period. For instance, you will require more days if you are unsure about your financial situation.
The closing date is the expiration day of the contract. Your conveyancer should broker reasonable terms of expiration. For example, you should not be penalised if your bank cannot finance the purchase.
Seller and Buyer Obligations
The contract details the obligations of both parties. As a buyer, your conveyancer could ask the seller to allow you to perform a house inspection. Besides, the contract could compel the seller to conduct minor renovations before the closing date of the property. Additionally, the agreement could prevent the seller from accepting offers from other buyers before the closing date. The seller could ask you to provide a letter from your bank indicating you have sufficient finances to purchase the property.
The contract of sale describes the terms of property purchase. They include:
- The negotiated asking price of the property.
- The terms of payment. More often than not, state laws will compel you to use bank transfer.
- The earnest (deposit) that the buyer should pay. Typically, ranges between 10-30% of the asking price.
- When the buyer should complete property payments.
When buying property, your conveyancer should negotiate the cooling-off period, closing date, buyer and seller obligations and the payment terms. Contact a professional if you need property conveyancing services.