So You've Bought A Property?
Congratulations! So what's next? Adam Held explains the legal process.
Congratulations! So what’s next? We assume you have a team of professional advisors - financial planner, mortgage broker, accountant, lawyer, banker - helping you with the necessary due diligence before you signed up, e.g. you are able to service the debt; what is the most tax effective way for you to buy the property; contract review. Remember – your team is there to assist and advise you. You need to be pro-active throughout the transaction to ensure you are fully informed, ask questions if you aren’t sure, and make the decisions.
A lawyer’s primary role in conveyancing is the transfer of land, together with regularly communicating with, and advising you along the way.
We can provide contract reviews as part of your pre-purchase due diligence, without charge, prior to your signing a contract. At that time, please let us know your requirements about how you want to buy the property, e.g. using an SMSF. Otherwise, once you give instructions, your lawyer should review the contract prior to the ending of the 3 day “cooling off” period, if applicable.
Depending on the type of property you have bought, we will provide you with the relevant detailed advice.
You should arrange insurance cover immediately after both the contract becomes unconditional and loan approval.
Once your loan application is approved, your broker/lender should request a copy of documentation from us, including transfer of land, together with any state revenue office forms.
You will need to ensure that in addition to the loan amount (your lender will advance only a net amount, after withholding stamp duty and registration fees) there are sufficient funds available by settlement either by drawdown from an account with the lender by way of a shortfall authority from you, or else funds provided by you. Please ensure that you have liaised with your lender regarding stamping and registration of documentation and to allow for the appropriate fees.
All Victorian transfers of land (with limited exceptions) must now be conducted by way of electronic (virtual) conveyancing, currently on electronic workspaces using the PEXA network.
You will by now have received numerous documents to sign and return, including: State Revenue Office Duties On-line Transferee Statement; Verification of Identity paperwork; Land Victoria Client authorisation and certification. Necessary searches and certificates will have been ordered, which are required to prepare the Statement of Adjustments and Settlement Statement.
In the lead up to settlement, you should do a final inspection of the property. You will need to arrange for the connection of all services well in advance.
On settlement day, the parties’ representatives meet virtually to exchange documents for the purchase money. Immediately after settlement, you will be contacted and advised that the matter has settled, and the property is now yours!
If you would like further details or assistance or to discuss information contained in this article or more generally, please do not hesitate to contact us.
This article is intended to provide commentary and general information only. It should not be relied upon as legal advice. It is not intended to be a complete or definitive statement of the law on the subject matter covered. Further professional advice should be sought before any action is taken in relation to the matters described.