The process of purchasing a residential property isn’t terribly complicated, although there does exist some key points that should be considered and addressed in order to fully grasp the notable nuances of the processes involved. Without a relatively sound understanding of the topic, the process can be a little tricky, and if a more comprehensive guide through the process is necessary, it’s advised that you seek out the services of a trained and experienced real estate agent or adviser.
Firstly, since the process involves the transferring of ownership from one entity to another, which comes with its own set of legal challenges and necessities, it’s fundamental that a legal counsel be sought out prior to even considering a purchase. This will allow you to have your options given to you, and to be shown the best possible route to purchase – what any given repercussions may be for any individual property, and how to properly manage them when they eventually arrive. For the best results, you may want to seek out a financial advisor in conjunction with a legal counsel, in order to establish your options with regards to finances, some of which may interlace with other legal elements.
The aforementioned action can be especially beneficial if it is in the lead up to the signing of a contract, a period otherwise known as the pre-contract. Some of the things that will be conducted by the professional help during this period include:
- Gaining invaluable advice regarding any rights you may have, any obligations you should be expected to incur, and any liabilities you may be faced with accepting.
- Investigative journeys onto and around the property in question, with the intention of figuring out how compatible the property is with the buyer, and to assess whether or not any features of the property may impede the wishes of the future owners.
- Leading the charge in the negotiation process — discussing the intricacies of the contract, and negotiating the entry of special terms or stipulations.
The next phase of the process involves the signing of the contract, which should only be brought to fruition once the previous points have been touched upon, and you are confident that the contract lives up to your expectations.
It’s also important to note that should limitations and issues be encountered with regards to language, a professional language translator can be incredibly helpful, as they can remedy these issues immediately. To contact a translation professional for assistance, contact here.
Following this, you’ll need to fulfil (if any) contract conditions before the date that is set for them. These can be anything from getting personal finances in order before the prescribed date in the agreement, to ensuring the completion of any work accepted by the seller to be performed on the property.
Immediately prior to the finalising of the purchase is a period that is often dubbed the pre-settlement phase, which is a time where all legal requirements and obligations should be satisfied, as well ass all those incomplete aspects that regard finances. This stage usually includes the following:
- Signing of bank loan documents.
- Confirming the existence of finances for transactions.
- Ensuring transfer documentation is without error and ready for use.
- Readying of lease documents.
- Confirming the arranged date of the settlement between the involved parties.
In most states in Australia, and in most circumstances, as a property buyer you may be obligated to fulfil certain requirements that don’t necessarily pertain to the mutual transaction between the buyer and the seller, but rather involve certain legal factors mandated by government. Most notably, this includes the payment of the stamp duty tax, which should be taken into consideration during the pre-settlement process. For a more in-depth guide through the processes surrounding the stamp duty tax, and for any other government mandated obligations, it’s always advised that you seek professional help.
The final part of the process involves the stages of settlement and post-settlement, which should be largely absent of stress and complications if the prior measures have all been handled properly. Firstly, a representative will perform the money exchange – solicitor or bank – which will be reciprocated by the seller exchanging his/her transfer documents. This process ensures that title of the property is firmly established, and the purchase is formally complete thereafter.
A registration of the transfer from the previous owner to the new owner (you) will be undertaken immediately after the settlement comes to a close, which will then be followed up by the final stages of the process: satisfying outstanding obligations. These obligations include paying the council rates, and informing the relevant authorities of the change in ownership.