Purchase of Property
We can help with all aspects of your property purchase, whether you are a first-home buyer, a seasoned investor, or looking to upsize your family home. Our experienced property team can assist with:
- Buying residential or rural property
- Commercial property transactions
- Off-the-plan and strata title sales and purchases
- Auction sales
- Property transfers / family transfers
- Mortgages and other interests in land
- First Home Buyers’ Scheme
- Assessment of transfer duty
- Commercial and retail leasing
What is conveyancing?
Conveyancing is the legal process of transferring real estate from one party to another. A conveyancing transaction is often one of the largest financial transactions a person will make, yet the legal process typically moves very quickly providing no room for error. Getting sound professional advice when buying or selling property is important to ensure your legal rights are protected and that you understand the implications of the transaction.
Understanding the contract and section 32 statement
Before committing to buying a property, we recommend getting advice from an experienced lawyer on the contract of sale and section 32 statement.
The contract of sale will show details of the vendor and property, the vendor’s legal representative, the purchase price, and include a range of standard and special conditions. Any additional terms or conditions verbally agreed to should be written into the contract, so both parties know exactly what they are committing to.
The section 32 statement is a legal requirement for the sale of residential properties in Victoria and contains important information on the property that is not usually apparent from a physical inspection. The section 32 statement can help you make an informed decision about whether the investment is right for you. It includes details such as the certificate of title search and any encumbrances (easements, covenants, mortgages) registered on the title, council planning and information certificates, contaminated land notices, etc.
To ensure you understand the terms and conditions in the contract of sale and that it complies with all legal requirements, we recommend you speak to one of our experienced property lawyers.
Proceeding with your purchase
Once you have decided to make an offer on a property but before signing contracts, you may want to negotiate with the vendor. Once a price has been agreed, and you have signed contracts, you will need to pay the deposit and prepare for settlement.
Generally, a cooling-off period of three business days applies to private sales of residential and small rural property sales in Victoria. The purpose of the cooling-off period is to give you time to consider the purchase and change your mind if you no longer believe the property is suitable. The cooling-off period begins from the date you sign the contract of sale.
The only usual consequence for cancelling the purchase during the cooling-off period is the forfeiture of $100 or 0.2% of the purchase price (whichever is greater).
There are a few situations in which the cooling-off period does not apply, for example, if the property is sold at a public auction, or your offer to purchase the property is accepted within three clear business days before or after the property’s auction date.
The period between exchange and settlement of a property is usually between thirty to ninety days, however, you can try to negotiate a longer or shorter period if required.
Before settlement, all rates and other recurrent outgoings will be adjusted between the vendor and yourself. You will need to pay the balance of the purchase price in exchange for the transfer documents and the certificate of title.
When the change of ownership occurs, your lawyer will notify relevant authorities on your behalf.
Auctions
Sale of a property by auction is slightly different to sales by private treaty. For instance, there is no cooling-off period in a sale by auction, so you will want to ensure you have obtained any pest and building reports, conducted all due diligence and sought advice on the contract, before attending and bidding at the auction.
Ownership interests in property
The way in which a legal interest is held in property is an important consideration when dealing with real estate. If you are purchasing property with somebody else, you will need to choose whether your interest is to be held as a joint tenant or tenant in common.
If you own property as a joint tenant, then the arrangement is subject to the rules of survivorship. This means that when one co-owner dies, their share automatically passes to the surviving tenant or tenants. The survivorship provisions prevail irrespective of any terms in a Will that state otherwise.
Property held as tenants in common can specify the individual shares held by each owner (for example 50/50 or 30/70). In such cases a co-owner can transfer or sell his or her share in the property or leave it as he or she wishes to a beneficiary by Will.
Joint tenancies are often considered suitable for spouses and domestic partners however this may not always be the case. It is important to obtain legal advice regarding property co-ownership to protect interests and minimise potential disputes down the track, and to prevent unintended outcomes in estate planning.
If you need assistance, contact [email protected] or call 03 9546 8155 for expert legal advice.