PURCHASING

Things to do before you sign

Under the Sale of Land Act 1962, a disclosure document known as a "Vendor Section 32 Statement" must be given to a purchaser before a contract is signed. This statement must be signed by the vendor before it is signed by the purchaser.

The statement must contain certain information about the property such as the dimensions of the property, location of easements, zoning of the property, particulars of any building approvals given in the last seven years, and details of rates and charges that affect the property.

The estate agent will discuss with the vendor any prospective offers you make to purchase the property and, when there is a mutual agreement for the terms of a sale, the agent will prepare a "Contract of Sale of Real Estate". This contract will contain all of the relevant information relating to the sale. We are happy to discuss the Contract of Sale and Section 32 statement contents with you before you sign anything. There are many other things that should be done or considered before a contract is signed, such as:

• Measuring the property;
• Determining the availability of services;
• Examining the property for illegal structures;
• Ensuring your contract is conditional upon finance approval (if necessary).

Things to do after you sign

After the Contract of Sale and Section 32 document is executed by all the parties, it will be forwarded to our office, at which time we can proceed with the conveyancing process. You will also be required to forward a copy of your Contract to your bank (if applicable).

Insurance

You should immediately insure the property. When arranging insurance, remember that it is not necessary to insure the land value—only the improvements. Please note that if you are obtaining finance your financer will require a Certificate of Currency of Insurance noting them as mortgagee.

There is a statutory obligation on the Vendor to maintain insurance in the name of both parties, but it is difficult for us to ensure the policy remains current and adequate. Essentially, Victorian contract law treats you as having purchased the property subject only to settlement; if damage occurs, it can be arguable. As a matter of prudence, insure the property from signing the Contract.

Deposit

A Deposit binds the Contract between all parties. In most instances the deposit payable is 10% unless negotiated differently. Your Deposit should be paid as the terms of the Contract you have signed. If the deposit is due, pay it whether or not finance has been approved. If an extension is required, contact us to negotiate with the Vendor. The Deposit is paid to the Real Estate Agent’s Trust Account. Note both Real Estate Agents and Conveyancers are subject to scam risks.

Finance and your Lender

If your contract is conditional upon finance approval, make immediate application and do everything reasonably asked of you. If the purchase is conditional on finance and finance has not been approved, the vendor is not yet bound, but you are expected to act promptly.

If you are satisfied with the vendor that finance has been approved, then the finance clause will allow the contract to become unconditional. It is critical that you alert us to any delay or problem with finance approval.

Settlement arrangements

Before settlement, we will prepare the additional transfer documents and the statement of adjustments. Council and Water Rates and any other relevant charges are adjusted on the statement to ensure you pay the rates for the period you have acquired the property.

We contact your lender and advise the funds they have available for settlement. If the available amount does not cover all necessary funds, we calculate and provide you with the shortfall.

Final inspection of the property should be made prior to the date of settlement. The property should be in the same condition as the day of sale.

Settlement

On settlement day, you are not required to attend; we handle all the requirements. Settlements are normally scheduled between 11 am and 3 pm. Our office will contact you once the successful settlement has been affected. Settlements are effected via PEXA and online settlement platforms where communication is hands-on for you between all parties.

After settlement

Your conveyancer will confirm your purchase has been completed, notify the estate agent so that the keys can be released to you, and ensure title and transfer documents are prepared and lodged for registration. If you have purchased with cash on hand, we will arrange the transfer to be registered and the title will issue to our office in your name.