PURCHASING PROPERTY

Pre-contract and property due diligence
Purchasers will generally have their lawyer review the contract and inspect the property carefully. 
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. 

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. 
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.
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. 
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Buying at auction

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.
Contract of sale and section 32 review

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.

Legal advice for purchasers

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.

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