Information for Buyers
Buying
Vendor Statement
A Vendor Statement, known as a 'Section 32', is a document containing important information concerning your property. It details information including Title description, zoning details, building permits, council rates, and much more. The Vendor Statement gives full disclosure to the prospective purchaser to avoid any hidden traps.
A Vendor Statement must be provided to you, the prospective purchaser, prior to signing the Contract of Sale. If a Vendor Statement has not been provided to you the Contact of Sale is not enforceable.
If you are not sure about the Vendor Statement, Urban Conveyancing can review it for you and offer you professional Conveyancing advice, at no additional charge.
Buyer Beware: It is not mandatory for a Vendor to provide all certificates relevant to a purchaser. The Vendor Statement will not detail any structural defects that may affect the property, development proposals for the local area, any land contamination, and any permits which have not been obtained. We recommend that you check everything about your future property, including:
- Get a building inspection subject to your satisfaction.
- Check all appliances, fixtures and fittings. Make note of their condition.
- Measure the boundaries of the property to ensure they conform with the planning diagram in the Vendor Statement.
- Ensure the property complies with all local building regulations.
- Get a pest inspection to ensure the property is termite-free.
Contract of Sale
Should you decide to put in an offer on a property, this is usually done verbally or in writing, in a Contract Note or Contract of Sale. You should communicate the terms of your offer (eg. subject to obtaining finance) to the Vendor and if your offer is accepted, pay a deposit on the property.
If you have already made an offer on a property, contact Urban Conveyancing so we can start assisting you through the transfer process.
Final Inspection
Within the 7 days prior to settlement, you have the right to a final inspection of the property, to confirm that the property is in the same condition as it was when you signed the contract of sale. Should you be dissatisfied with the inspection, contact Urban Conveyancing immediately. We may be able to file claims against the Vendor on your behalf.
If you do not complete your final inspection prior to settlement it is extremely difficult for any claim to be made against the vendor.
Adjustments
'Adjustments' refer to the final financial statement of the property transaction. This will show the purchase price, deposit paid, pro-rata adjustment of rates such as council, water, body corporate charges and if applicable, rent.
The adjustment of rates ensures that the Vendor pays all rates and taxes due up to the Settlement Date, and that the Purchaser pays only from the Settlement Date onwards. Urban Conveyancing will serve these details on the Vendor's representative prior to settlement.
All cheques handed over at settlement must be bank cheques.
Settlement
Settlement is when the Purchaser takes possession of the property. The specific date of Settlement is usually documented in the Contract of Sale. Urban Conveyancing will advise you of the funds required for settlement and details of the cheque payee.
All cheques handed over at settlement must be bank cheques.
A meeting is scheduled with all parties involved in the transfer (Purchaser's representative, Vendor's representative, incoming Mortgagee and Discharging Mortgagee) at a nominated time and location to effect settlement. The Purchaser and Vendor do not usually attend.
At settlement funds are transferred from the Purchaser to the Vendor. Transfer documents are provided to the Purchaser's representative and incoming Mortgagee for inspection.
Once good title is established and all parties are satisfied, settlement is deemed to have been effected. We will call you to advise you once the transaction is complete.
After Settlement
Urban Conveyancing will inform the local council and water company of your ownership of the property. We will also prepare a final summary of the transaction for your information and records.
Return to topFees and Charges
The following details the fees and charges associated with buying your property.
Conveyancing Fees
Urban Conveyancing charge a competitive, fixed fee for each property transfer, so you can rest easy knowing that there won't be any surprises or hidden costs. The only extra costs are disbursements that we outlay on your behalf. We don't ask for any fees up front; all accounts are paid on the day of settlement.
Contact our office today to discover just how competitively priced our services are.
Return to topLand Titles Office
At settlement, you will be required to pay fees to the Land Titles Office for the registration of your documents.
For details of these fees, click search for 'v'Victorian land tax calculator' .
Return to topStamp Duty
Stamp Duty is usually the biggest added cost associated with purchasing property. In Victoria stamp duty is based on the value of the property and must be paid at settlement. If you are taking out a mortgage to purchase the property there will be additional stamp duty payable.
To calculate your stamp duty fees search for 'sro land transfer duty calculator'.
Return to topBank Fees
If you are taking out a mortgage to purchase your property, you may be required to pay an application fee to your lending institution. Mortgage application fees vary by lender and loan product, so it pays to shop around.
To see how much you can borrow, what your monthly repayments would be, what the lowest interest rate available to you is as well as what your maximum approved loan would be, search for 'best home loan rates australia'.
Return to topFirst Home Buyers
We suggest that first home buyers should search for 'first home buyer victoria'.
Return to topCapital Gains Tax
As a prospective purchaser you should be aware of potential Capital Gains Tax liability on the sale of your new property. If your property is not used solely as your principal residence, you may be liable to pay Capital Gains Tax on any profits made in the sale of your property.
If you intend to sell your property within 12 months of the date of purchase, or you believe you might be affected by Capital Gains Tax, you should contact the search for 'ato capital gains tax' or speak to your accountant.
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