After finding the perfect home, the next thing to do is sign the contract.
This is the start of the conveyancing process.
It may seem easy at first, but transferring legal title from the seller to the buyer can be quite complex as there are many steps involved in the conveyancing process.
It is therefore a good idea to engage a reputable law firm that specialises in conveyancing to help with the conveyancing process.
When you select a conveyancer, don’t base your decision on price only. Price is what you pay and value is what you get.
Ask yourself, what value am I getting from the law firm?
In this article, we look at the top 4 questions we get asked as an expert law firm that specialises in conveyancing.
1. Do I Qualify For the First Home Owners (FHOG) Grant?
This is a Stated based grant that is available if:
- you are a natural person (that is you are not a company or a trust) over the age of 18 years old;
- the home you are buying or building is new (or has undergone substantial renovation) and is valued at less than $750,000.00;
- you are an Australian citizen or permanent resident; and
- you have not previously received the grant.
In addition, you must move into a new home as your principal place of residence within 1 year and live there for a continuous period of 6 months.
2. Why Should I Take Out the Insurance Before Settlement?
The Standard REID Contract states that the property is at the buyer’s risk from 5pm on the first business day after the contract date.
This, therefore, means that the risk in the property passes to the buyer, even before settlement has taken place. Anything could happen from the contract date to the date of settlement (which can be as much as 30 to 40 days).
When you insure the property, you are protecting yourself from damage or destruction to the property. Think, fire and adverse weather conditions, such as floods and hail (which are quite common in Queensland).
3. Who Should Pay for Rates and Water?
The seller is liable for rates and water charges for the period before settlement. It is therefore important that searches be conducted to determine if there are any outstanding amounts for rates and water.
Your conveyancer will prepare a statement of adjustment, calculating and apportioning rates and water charges between the seller and the buyer.
4. What Does ‘ Unconditional’ Mean?
Contracts that are subject to conditions (such as a finance or building and pest condition) are known as conditional contracts.
Whilst conditional contracts are binding, the sale of the property will only proceed if the buyer is satisfied with the conditions.
If the buyer is not satisfied with the building and pest condition or if finance is not approved, the buyer would be entitled to terminate the contract.
If the buyer satisfies the conditions in the contract, the contract then becomes unconditional. The effect of this is that both the buyer and the seller are obliged to follow through with the contract of sale.
Conclusion
The property buying journey and conveyancing process can be daunting for first home buyers.
But it doesn’t have to be.
At One80 Conveyancing, our mission is to make the home buying and conveyancing process easy for you.
We make it easy for you with the One80 Prime System™ and the One80App™.
The One80 Prime System™ and the One80 App™ is the value you get when you engage One80 Conveyancing.
DISCLAIMER: This article is provided for general information purposes only. Its content is current at the date of preparation. Changes in circumstances or policy or legislation after the time of preparation may impact the accuracy of the information provided. It is not legal advice and is not tailored to meet your individual needs. You should obtain specialist advice from a qualified professional based on your specific circumstances before taking any action concerning the matters discussed in this guide. One80 Conveyancing Pty Ltd will not accept liability for any reliance on this article, including but not limited to, the accuracy, currency or completeness of any information or links
