Property Transfer in Sydney :
Buying Property Guide

There are two essential things you should deal with before you enter the property transfer in Sydney market:
– Ensure that you can afford it and have funds to complete the purchase
– Take into consideration the cost of Stamp duty; pre purchase inspection reports; legal costs; bank fees and other charges associated with your loan; property rates, levies and charges; Title Insurance, household insurance; removalist charges; and future repairs to the property. It’s important to factor in all of these costs when planning for a property transfer in Sydney, as they can add up quickly and impact your overall budget.

Have your loan pre-approved for the property transfer

It will reduce a great amount of stress if you have your loan “pre-approved” prior to entering the property market, having provided to your nominated lender all required financials to verify your income. Generally, the only matter your lender will then need to arrange is a property valuation when you locate the property you would like to purchase.

Importance of Contract Review

When you find the property, you would like to purchase and the vendor (seller) has accepted your offer, you should immediately notify your conveyancer and provide them with a copy of the contract. The contract will be reviewed, and they will advise you on the Contract.

Contracts may then be “exchanged” once you are satisfied with all the terms and conditions of the sale. Exchange occurs when the seller has signed the original Contract for Sale and the buyer has signed an identical copy. Contracts will then be compared to ensure they are identical and physically or electronically (exchanged) and the front page of each Contract will be dated. The Completion date will run from the Contract date.

Contracts may be exchanged with or without a cooling off period.

Inspection During Property Transfer

During the cooling off period we highly recommend that you have the property inspected by a qualified building and pest inspector or where you are buying into a strata/community scheme a Strata Inspection Report is extremely beneficial.
A building inspection report can also be of assistance when carrying out a final inspection of the property prior to completion. If you feel the property has been damaged since you exchanged Contracts, you can refer back to your building inspection report to verify the condition of the property.

A buyer of residential property can cancel a contract within (five) 5 business days of exchange. This is called a cooling-off period.

It is important to bear in mind that should you decide to withdraw from the contract during the cooling off period, for whatever reason, you will forfeit to the vendor 0.25% of the purchase price. Most sellers of a residential property want the cooling-off period waived so that the contract is bonding on you immediately. This is called a section 66W Certificate.

If you have decided not to proceed with the purchase, it is crucial that you notify your conveyancer well before the cooling off expiry so that the proper legal notice can be served on the vendors conveyancer otherwise you will be bound to complete the contract.

Buying a property at Auction

Should you intend to purchase a property at auction, be aware that if you are the successful bidder, you will be required on the day of auction to sign an unconditional contract (no cooling off period) and pay the required deposit, usually 10% of the price.

As you will be immediately bound to the contract, it is important that prior to the auction you carry out pre purchase inspections, have your loan formally approved and have your conveyancer explain the terms of the Contract to you.

If you purchase at Auction or the exchange of Contracts was made by a Real Estate Agent and we have not had the opportunity of providing you with advice on the Contract, we cannot be held liable for any consequences. Please notify us immediately if Contracts are exchanged by an agent.

We are available to answer any questions you may have regarding the purchase of your first home or investment property. Our goal is to provide affordable conveyancing services and guide you through the entire purchasing process. Don’t hesitate to contact us for assistance.

Conclusion:

Navigating the Sydney property market can be complex, but with Alexis Conveyancing, you don’t have to go it alone. From pre-approval guidance and meticulous contract reviews to crucial inspections and auction support, we ensure every step of your property transfer is handled with expertise and care. We understand the financial and emotional investment involved, and our commitment is to provide clear, affordable conveyancing services that empower you to make informed decisions.

Don’t let the intricacies of property transactions overwhelm you. At Alexis Conveyancing, we’re dedicated to simplifying the process, protecting your interests, and ensuring a smooth, stress-free experience. Let us be your trusted partner in achieving your property goals. Contact us today for personalized assistance and discover the peace of mind that comes with professional conveyancing. We’re here to answer your questions and guide you through every stage, making your property journey a successful one.

Frequently Asked Questions (FAQs):

Q: What is the cooling-off period, and how does it affect my property purchase?

A: The cooling-off period in NSW is a five-business-day window after contract exchange, during which a buyer can withdraw from the purchase. However, a 0.25% penalty of the purchase price is forfeited. Many sellers request a Section 66W certificate to waive this period, making the contract immediately binding. We can advise you on whether a cooling-off period is in your best interest.

Q: Why is a contract review so important before exchanging contracts?

A: A thorough contract review by a conveyancer ensures you understand all the terms and conditions of the sale, including any potential risks or obligations. We identify any issues that may affect your purchase, such as zoning restrictions, easements, or special conditions, protecting you from unexpected problems down the line.

Q: What costs should I consider beyond the property purchase price?

A: Besides the purchase price, you should factor in stamp duty, pre-purchase inspection reports, legal costs, bank fees, property rates, levies, title insurance, household insurance, removalist charges, and potential future repairs. We can help you estimate these costs to ensure you have a complete financial picture.

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