10 MISTAKES WHEN PURCHASING A PROPERTY WHICH CAN BE AVOIDED - PART 6 - PROPERTY ENQUIRIES

10 MISTAKES WHEN PURCHASING A PROPERTY WHICH CAN BE AVOIDED

Part 6 – Property inquiries

Sydney-based legal practice Ross Anderson Lawyers will assist you to avoid or minimise complications which arise when purchasing real estate. We helped many of our clients to avoid multiple pitfalls in the process and now ready to share our knowledge with you.

PROPERTY INQUIRIES

In our previous publication we discussed obtaining finance for your purchase and pointed out the importance of working with your mortgage broker to have it ready by settlement.

As you are completing your loan application forms provided to you by your broker (or directly by lender), there is much going on behind the scenes.

Your solicitor or conveyancer orders multiple documents (also called certificates) with the purpose of determining what money is owed on the property by the vendor and to prepare a document called settlement adjustment sheet.

The document sets out the agreed price of the property, the amount you have already paid to vendor’s agent as a deposit, and then adds or deducts amounts owed by the vendor by way of council rates, strata contributions, water rates and in some cases, land tax levies.

This is done to ensure all payments are accounted for and apportioned to each party depending on where the proposed settlement date fits into various payment periods.

These certificates will cost several hundred dollars (at the time of writing of this article) and the cost of them may need to be paid by you on top of conveyancing fees quoted to you in the beginning of the matter. These costs are called disbursements and your solicitor by now would have explained and quoted them in.

Inevitably, the final price you would be required to pay for the property will change because of these adjustments. The difference between what you thought the price was and what you would be required to pay could be several hundred dollars or more.

Needless to say, you should have enough funds either saved or borrowed to finance that difference in price.

Conclusion: read the settlement adjustment sheet provided to you by your solicitor or conveyance carefully, ask for explanations and budget for more funds that you expected to pay.

Ross Anderson Lawyers provides residential and commercial conveyancing services. Please visit our website for more information.

Contact Andre Petrov of Ross Anderson Lawyers on 1300 86 16 76 or email us to discuss your conveyancing matter.

Mortgage Broker “In Advance Financial Management” will assist to obtain a home loan suited to your needs. Call Boris Glushankov on 0411 835 071 to get a great deal on your mortgage.

(c) All rights reserved. This and any other publications by Ross Anderson Lawyers are copyrighted. Reproduction, copying and commercial use is prohibited unless expressly authorised by Ross Anderson Lawyers.