Property LawyerS Serving Essendon North and Victoria

Buying a property, particularly for the first time, can be daunting task for clients. We know this, so we try to make the process as easy and clear as possible so that the transaction can be finished with as little stress as possible. At the same time, we encourage our clients to be involved in the process because that makes sure they know what's going on. Our property lawyers are experienced in all aspects of the conveyancing process. 

The most important part of the conveyancing process is the contract of sale. Ideally, before you sign the contract and section 32 you should have it reviewed by a lawyer. The contract shows what you and the seller agreed to when you agreed to buy the property. The contract is a legally binding document, and if it is broken, it could lead to serious legal problems.

Since the contract is meant to be a record of everything you agreed to with the seller, anything you said orally is not part of the contract and you shouldn't rely on it. If you are worried that parts of your agreement with the seller are not in the contract of sale, you should let your lawyer know as soon as possible.

Purchasers should be aware that there are some extra risks to buying property at auctions including: 

1. Contracts signed by a buyer within three clear working days before or after a publicly announced auction are not subject to the statutory cooling off provisions generally applicable to residential property buyers.
2. If you purchase at auction, you'll be expected to have your finance sorted out, and if you don't, you won't be allowed to terminate the contract. That is, the contract won't be conditional on finance. A buyer who is unable to settle runs the danger of losing their deposit, paying penalty interest, and being sued for damages.

Generally speaking, your transaction will go through the following five steps: 

1. Pre-contract and property due diligence - purchasers will generally have their lawyer review the contract and inspect the property carefully. 
2. Execution - once the terms of the deal have been negotiated both the vendors and purchasers will sign the contract. Typically, most purchasers will pay a deposit of 10% at this stage into the real estate agents trust account. 
3. Conditions precedent - sometimes there will be conditions which need to be met before settlement can proceed. The most common conditions include approval of finance, building and best inspections and in the case of "off the plan" purchases, the completion of the subdivision or construction. Once these have been met, the contract will proceed to settlement. 
4. Adjustments and final inspection - the purchasers lawyer will need to prepare a statement of adjustments so that rates and charges on the property are apportioned fairly between the vendor and purchaser. You will also need to undertake a final inspection of the property before settlement to make sure it is in the same condition as when you signed the contract. 
5. Settlement - On the day of settlement, the purchaser will pay the vendor the purchase price, and title (together with all risks and responsibilities that come with it) will be passed to the purchaser. Settlements in Victoria take place electronically and your lawyer will let you know once it is completed. At this point, the purchaser will collect the keys from the vendors agent. 

We are regularly engaged to review contracts and section 32 vendor statements in their pre-contract stage for purchaser clients. Our skilled property lawyers can guide you through each step of the conveyancing process while advising you on your legal rights and obligations. Engaging a property lawyer at the initial stages can make the critical difference between a successful and unsuccessful transaction. 

The process of selling property might seem intimidating at first since it is not something most people undertake often. Our property lawyers can assist you through the whole process as a vendor. Once the decision to sell a property has been taken, the typical next step is for the vendor to appoint a real estate agent to manage the transaction. The vendor's agent will next request that the vendor have a section 32 (also known as a vendor statement) and contract of sale of real estate drawn out by property lawyers.

It's important to remember that the contract of sale and section 32 vendor statement is the most important document during the conveyancing process. The contract will record the terms of the sale and is a legally binding document. Breaching its terms can have serious legal ramifications. A section 32 vendor statement is a set of documents that must be given to a potential buyer of the property before they sign a contract pursuant to the Sale of Land Act 1962 (Vic). An inaccurate or incomplete section 32 vendor statement can give the purchaser the right to terminate the contract. Your property lawyer will make sure that the contract and section 32 vendor statement meets all the formal requirements of the Sale of Land Act 1962 (Vic). 

Generally speaking, your sale transaction will go through the following five steps: 

1. Appointing a real estate agent and preparation of the contract of sale and section 32 vendor statement - vendors will generally instruct their property lawyer to prepare a contract and section 32 vendor statement after appointing a real estate agent. Your lawyer will ask you a series of questions that you need to answer about the property, as well as undertake necessary searches that need to be included in the document. At this stage, the vendor will only sign the section 32 vendor statement once it is ready and not the contract of sale. 
2. Sale/Execution - once a purchaser has been found, the parties will negotiate the price and settlement date for the sale, along with any other conditions such as finance. This will be recorded in the contract of sale. After everyone has agreed on the terms, the contract will be signed by the purchasers first followed by the vendors. Many contracts are executed electronically and a deposit is usually paid into the trust account of the real estate agent. 
3. Conditions precedent - sometimes there will be conditions which need to be met before settlement can proceed. The most common conditions include approval of finance, building and best inspections and in the case of "off the plan" purchases, the completion of the subdivision or construction. Once these are met, the contract can proceed to settlement. 
4. Adjustments and final inspection - the purchasers lawyer will need to prepare a statement of adjustments so that rates and charges on the property are apportioned fairly between the vendor and purchaser. At this point, the purchaser is entitled to  undertake a final inspection of the property before settlement. A vendor must make sure that the property is handed over in the condition it was in at the time of sale (save for fair wear and tear) and empty of all belongings (if the property was sold as vacant possession).
5. Settlement - On the day of settlement, the purchaser will pay the vendor the balance of the purchase price plus any adjustments. The title (together with all risks and responsibilities that come with it) will be passed to the purchaser. It is important that a vendor maintain their insurance of the property until settlement is completed.  Settlements in Victoria take place electronically and your lawyer will let you know once it is completed. 

We are often engaged by vendor clients to prepare contracts and section 32 vendor statements. Our expert property lawyers can walk you through each stage of the conveyancing process and advise you on your legal rights and responsibilities. Engaging a property lawyer early on might be the difference between a successful and unsuccessful sale.