Once you decide on a community and a home, begin the actual process of making that home your next address. At this stage, you must stay informed and proceed in the right direction to get the best return on your investment while preventing any loopholes. Let us guide you through the essentials of the purchasing process.
Step-By-Step Land & Home Purchase Process
Connect with a Settlement Agent
Connecting with a settlement agent or a conveyancer can be a practical step in streamlining your entire property-purchase process. Purchasing a home involves a lot of paperwork, and navigating through it while understanding the industry jargon and contract details can seem daunting. So, engaging a professional at the beginning and having them guide you through each step of the process is always recommended. From understanding your rights and obligations to price negotiations and contract review, they will undertake it all and act in your best interests to make the transaction profitable.
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Contract Review
You have found your dream home; now, you must make it your own. In Australia, you must proceed with an Offer and Acceptance Contract establishing a mutual agreement between both parties. It outlines terms and conditions agreed upon by the buyer and seller and will act as proof for the legal transfer of the property. Includes details like:
- Description of the property (address, lot number)
- Purchase price
- Deposit amount and payment schedule
- Settlement date
- Any special conditions
When you buy land or a land and housing package within a residential community, you proceed with a private sale treaty – the land developer will prepare the contract. A conveyancer will go through all the details mentioned in the agreement, including the fine print, ensuring accuracy and that there are no fraudulent elements. As a buyer, you can make conditional offers, such as finance approval, building and pest inspections, sale of another property, etc. Your conveyancer can guide you on these fonts, too, and ensure you avail of all potential benefits and enter a profitable and convenient agreement.
Contract Execution
If you are completely satisfied with the contract laid by your land developer, you can proceed with the signing. Both parties will sign and exchange the contract and legally transfer the ownership rights. Once done, the agreement will become legally binding, and no further changes could be made unless approved by both buyer and seller.
Next, you must pay the deposit within the time specified in the contract. The deposit is held in a trust account, usually managed by the real estate agent or the seller's solicitor/conveyancer, and the seller cannot access the deposit until the final settlement.
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Finalising the Sale: Settlement
The process doesn't end with both parties signing the contract, the final step takes place on the pre-agreed settlement day. The buyer and seller will have 28 days to fulfil the contractual obligations, and if the conditions are not met, the contract becomes "unconditional". During this period, you will have to –
- Sign and lodge the transfer of land contract.
- Sort your finances and pay the remaining purchase price and other relevant fees.
- Conduct a pre-purchase house inspection (in case of a house and land package).
Once the final payment is made, you will secure the ownership rights, and the property/land will be officially yours.
Post Settlement
Post the settlement, the registration details will be changed to reflect the change in ownership. Your settlement agent or lender will submit the transfer documents to your state's land titles office for registration. Once this is complete, your settlement agent will notify relevant authorities, such as the local council, water utility provider, and the State Revenue Office, to reflect the change in ownership.
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