Buyer's Guide
1. Get Your Finances in Order Early
If you're relying on a loan to fund your purchase, it's essential to meet with your lender or mortgage broker early in your search. This allows you to secure loan pre-approval (also known as approval in principle) and determine how much you can borrow. Being pre-approved enables you to act quickly when you find a property you want to buy, with your lender ready to give final loan approval if you meet all the necessary criteria.
2. Engage a Conveyancer or Lawyer
You'll need a solicitor or a registered conveyancer to handle the conveyancing work for your purchase. Solicitors are often recommended for contracts that are complex and require intricate legal work. However, experienced conveyancers, who specialise in conveyancing, are ideal in most situations. Many law firms employ registered conveyancers to handle their conveyancing work.
3. Check the Title of Your Chosen Property
Freestanding houses usually have a freehold title, also known as Torrens Title in Australia. Other property types have different titles with their own legalities. Many apartments and townhouses have Strata Titles, which involve legal ownership of a portion of a building and incur quarterly strata fees. Less common are Company Titled apartments, where you purchase shares in a building rather than a specific space. Restricted Company Title means you may not be able to lease out the property.
4. Carry Out Necessary Inspections
Building and pest inspections are crucial parts of the legal checklist for buying property in Australia. These inspections ensure that the electrics and plumbing meet requirements, that any renovations have council approval, that boundaries are correctly positioned, and that any pest issues are identified.
5. Have Your Deposit Ready
When buying at auction, you will need to pay a 10% deposit on the day to secure your purchase. This can be done via personal or bank cheque or a deposit bond, which your lender may be able to arrange for you. For private treaty purchases, the deposit is typically paid upon exchange of contracts. Organise your deposit several days in advance to avoid any complications.
