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Get a refund off Real Estate Agents Fees
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Real estate law.Going to see a solicitor is a bit like going to the dentist. I mean no one really wants to want to do it but on some occasions you can't avoid it. Going to visit a legal representative or solicitor when buying or selling real estate will be about as much fun as going to the dentist, so here are a few tips to give you some back ground so you can get in and out of your legal eagles office as quick as possible. |
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Solicitors and or conveyancers are known in the real estate industry for their ability to slow up the entire purchasing and selling process.
Many solicitors think that being slow is good practice and an example of due diligence, heaven help me what a pain , i believe it is probably more about the solicitors dragging it out as long as they can because the solicitor will have charges for every visit or every extra phone call.
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Don't
talk to them about the weatherReal estate law - what your solicitor should do.
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Organize your pre-purchase inspections such as building and pest inspection, survey council inspection, engineers, report or strata report.
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Explain the contract of sale
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Explain your rights
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Check your finance approval
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Make you aware of possibility of being gazumped
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Explain the expenses related to your purchase
Real estate law - Australia wide.
| Each state has different variations on real estate law: There are differences with real estate law from state to state therefore we can't go into too many specifics on what to expect from your legal representative when buying or selling real estate however below is some general information which will be helpful. Are there different ways to buy? The answer is yes and they are quite different in the process involved! A brief overview is set out below. |
Private Treaty
Private treaty is when you negotiate with the seller through the agent (or the seller direct if there is no agent) then agree on a price . Once you are ready, Contracts are then exchanged. The property is not sold at auction and you may retain or waive the "cooling off period".
What is a cooling off period?
Cooling off is a right you have at law to exchange Contracts and have 5 business days from exchange to change your mind and pull out of the Contract. If you pull out, you lose 0.25% of the price but any other deposit you have paid is refundable.
Giving up your cooling off rights - Section 66W Certificates
You may be asked to waive (give up) your cooling off right, that is, be locked into the Contract and not be able to change your mind. To do this you will be asked to provide a 66W Certificate, that is a certificate signed by your conveyancer to say that you are prepared to give up this right.
Naturally, whether you retain your cooling off rights or not, it is critical that you are completely informed before you sign the Contract.
Auction.When the hammer falls on your bid, you are the buyer of the property and there is no opportunity for you to change your mind. You will be required to sign and exchange Contracts straight away. Naturally it is important that you make sure you have your deposit ready and have done your homework. IMPORTANT: There is no cooling off period when you buy at auction. Once you are the successful bidder, there is no going back this is why it is critical that you have had the Contract checked, made your enquiries and arranged your finance before you go to the Auction itself. |
Are there things Contracts don't tell us?
The Contract gives us a lot of information about the title to the property but nothing about the quality of the building on it. This is what is commonly known as "buyer beware". It is therefore very important to have carried out inspections of the property prior to exchanging Contracts.
What are the steps in the
conveyancing process?
Exchange - what is it? This is when the Contracts are checked
to make sure they are identical, then "swapped" and dated. At
this point they become legally binding, in other words, you are legally
required to buy. What happens between exchange and
settlement? Your legal representative will investigate
the title thoroughly, submit a list of questions to the vendor's conveyancer
and liaise with your lender to make sure they will be ready for settlement.
Is there anything I should do between
exchange and settlement? You must pay your stamp duty, sign your
mortgage documents and make sure that you are ready with the balance of
funds in time for settlement . What is land tax? Land tax is a tax levied on the ownership
of land in NSW as at mid-night on 31 December of each year. It includes
vacant land or a house, flats home units and holiday homes and is based
on value. Your principal place of residence or land used for primary production
is normally exempt from land tax. Why do I pay land tax on the property
I am purchasing which I intend to live in as my principal place of residence?
If the contract provides for a land tax
adjustment and deletion of that provision is not agreed to by the vendor
then yes you will need to pay land tax. I am a first home purchaser. Do
I get any assistance from the government? You may be eligible for the First Home
Owner Grant Scheme. You are eligible if: • You are buying or building
your first home as a natural person, not as a company or trust. • You, or a joint applicant,
are an Australian citizen or a permanent resident of Australia. • You or your spouse (including
de facto spouse) have not owned a home in Australia prior to 1 July, 2000.
This includes investment homes. • You or your spouse (including
de facto spouse) have not resided in a residential property in Australia
in which you acquired an interest, on or after 1 July, 2000. • You occupy the home as your
principal place of residence within one year of the completion of the
transaction to which the application relates. • You are at least 16 years
of age. • You have not already received
a grant. If
you would like some free advice on applying for a home loan, read more
here...
I have owned an investment home previously. Can I still be eligible for the grant?
A person is not eligible if they or their spouse (including de facto spouse) has had a relevant interest in any residential property in Australia prior to 1 July, 2000, whether they live in it or not.
However, a person may be eligible if they or their spouse (including de facto spouse) has only ever had a relevant interest in any residential property in Australia on or after 1 July 2000 and they have not resided in that property.
If I previously owned vacant land but not a home, will I be eligible for the grant on the purchase or construction of my first home?
Yes. Vacant land is not regarded as residential property for the purposes of First Home Owner Grant.
If I have owned a commercial property, would I disqualified from getting the grant?
Not normally, provided that you met all the eligibility criteria and the commercial property did not include residence. For example, a shop with a residence attached.
Do I get a reduction on stamp duty if I am first home buyer?
Yes. Exemptions and concessions apply to first home or land contracts signed on or after 1 July, 2001. You qualify for the scheme if at least one of the purchasers has never owned and occupied a residential property within Australia. The exemption and concession is known as First Home Plus and it provides exemptions and concessions on transfer stamp duty and mortgage duty for first home buyers and builders in NSW.
How much reduction do I get?
Home
Stamp duty on a home up to $200,000 in the metropolitan no stamp duty is payable. Reductions on duty are calculated as follows between $200,000 and $300,000:-
The purchase price of your home multiplied by 8.99% less $17,980 equals your stamp duty.
Vacant Land
Stamp duty on a vacant land up to $175,000 in the metropolitan no stamp duty is payable. Reductions on duty are calculated as follows between $175,000 and $250,000:-
The purchase price of the vacant land multiplied by 7.53% less $7,152 equals your stamp duty.
There are two of us - are there differences in how we can buy?
You must decide whether you are buying as joint tenants or tenants in common. Joint tenants is when you buy the whole property together, there is no actual share, and if one of you passes, the whole property passes to the survivor. In tenancy in common, you own an actual share, it can be more or less than 50%, which will pass as set out in your Will if you die.
Buying real estate ? Free advice that will save you when buying real estate read more...
Should I take out Insurance?
If you are buying a freestanding property, make sure you arrange your insurance well before settlement as your lender will need to see it before providing funds and there is an element of risk to you if something happens to the property before settlement. If you are buying a strata unit, the building will be insured by the Owners Corporation.
Why is the amount I am borrowing different to the amount available for settlement?
You might be borrowing $400,000 from your lender however they deduct their costs of setting up the loan, registration fees to lodge transfer and any discharge of mortgages and any other dealings. They also may deduct a mortgage insurance premium depending on how much you are borrowing for the purchase price of the property.
Please don't be intimidated when talking to your legal representative if you have any concerns about what is happening make sure you ask questions!
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