If you are thinking of purchasing a property, you must consider that you will go through the conveyancing process. Conveyancing is the process of transferring legal ownership over a property from one party to another. If you are unfamiliar with purchasing residential property in Victoria, the process can be confusing and daunting. Below, we break down the process step by step for you as the purchaser.
Prior to submitting a formal offer to purchase a property, if you plan to purchase the property with a mortgage, it is a good idea to obtain pre-approval for a loan from a bank. Speak to a mortgage broker who can assist you with a loan. Sabelberg Morcos Lawyers can refer you to a suitable mortgage broker if you do not already have one.
When you have found a property that you wish to make an offer to purchase, request the contract and section 32 vendors statement from the agent. At this point, it is a good idea to engage a solicitor to review the contract and section 32 vendors statement so that you fully understand what you are purchasing and if necessary, additional conditions can be drafted to suit your circumstances.
After you have discussed the price and settlement term with the agent, it is time to make a formal offer and pay the deposit to the agent’s trust account. You will sign a contract of sale and section 32 which will be presented to the vendor for their consideration.
If the Vendor accepts the offer, they will sign the contract and an exchanged, fully executed copy will be returned to you. The agent will notify your solicitor that the contract has been executed and your solicitor will begin the conveyancing process. After the contract is exchanged, if you are purchasing the property with a mortgage, you must begin your loan application with your mortgage broker.
Sign Transfer of Land and Duties Forms
2-4 weeks prior to settlement, your solicitor will arrange to have you sign a transfer of land and duties forms for the assessment of stamp duty. Once the forms are signed, return the signed originals to your solicitor as soon as possible to avoid any settlement delays.
Statement of Adjustments/Settlement Statement
3-7 days prior to settlement, your solicitor will provide you with a statement of adjustments and settlement statement which shows how rates and outgoings are apportioned between you and the vendor. If you are purchasing the property with a mortgage, your solicitor will also ask you to deposit a sufficient amount of funds to cover for any shortfalls at settlement into your appropriate bank account. If you are purchasing the property with full funds, your solicitor will ask you to either draw bank cheques in preparation for settlement or send the full amount required for settlement to their trust account.
On settlement day, you are not required to attend settlement. Your solicitor will attend settlement to exchange documents and funds. Once settled, you will be notified by the solicitor that settlement has taken place and you can collect the keys to your newly purchased property. If you are purchasing your property with a mortgage, there is nothing further to do. The bank will register the transfer of land and hold the new title.
If you are purchasing the property with full funds, your solicitor will arrange for the payment of stamp duty and then register the transfer of land. The new certificate of title will be issued in your name and be delivered to your solicitor’s office within 2-4 weeks, after which you can arrange for its collection.
Sabelberg Morcos Lawyers can assist you with conveyancing at competitive prices and second-to-none service. We will seamlessly guide you through the process so that you can focus on enjoying your newly purchased property.
Sabelberg Morcos Lawyers has a vast network of industry professionals and is a one stop shop for all your property needs. From agents to mortgage brokers, whether you need help with a loan for your purchase, or need to discuss the tax implications with an accountant or need assistance to manage a newly purchased rental property, we will refer you to a suitable professional for anything that you may require.
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