While the information relating to a purchase has hopefully provided you with an overview of the process to purchasing a new property, there are many things that you should be aware of to anticipate during the process. Please consider the following when going through the steps of a property purchase transaction:
- Engagement Letters for Legal Work – We require our TERMS OF ENGAGEMENT to be signed before beginning any work for you as a Purchaser. Included in these terms and conditions is a requirement for payment of our costs. Please note that any delays in getting the TERMS OF ENGAGEMENT and any fee retainer back to us can see delays in the CONVEYANCING process.
- Identification – We always require an up-to-date copy of your photo identification. Our preference is for you to provide us with a copy of your Passport and Driver’s License along with our CLIENT DETAILS FORM when you return the signed Terms of Engagement to us.
- Financial Information – The bank you decide to use for borrowing the purchase funds from will require a reasonable amount of detailed information. Please be ready to provide specific salary, savings and financial information to the bank to speed up the process of getting your finance approved.
- Valuation – The lender/bank may also require a registered valuation to be prepared for the property, and this will typically need to be addressed directly to them by the valuer. Therefore, to ensure time frames are met for finance conditions, it is best to get a valuer acting quickly on valuing the property if that is a requirement of the lender/bank. Feel free to CONTACT US if you would like us to refer you to some valuers for this purpose.
- Written Instructions – When we are handling conditions on your behalf and the payment of funds from our trust account we need specific written instructions from you. We will contact you before condition dates and settlement dates, but please remember that we will need confirmations from you in writing before we can act on your instructions.
- Time – It is also important to make sure you are available to be contacted around condition dates and settlement date. Given the need to take instructions from you, if you are not able to be contacted it can make the conveyancing process a difficult one for us which can add to unnecessary additional attendances and costs to you.
- Bank Documentation – The banks prepare documents according to the instructions of the mortgage broker, or us in some instances. Therefore, it is highly crucial that the instructions the bank are given are specific concerning loan structure, ownership, interest rates, loan periods and fixed-interest rate periods (if any). If we receive loan documents that do not reflect your requirements, this will be because the instructions to the broker/bank have not been clear enough. The loan documentation and borrowing process is assisted greatly if the instructions being given are reviewed by you, the mortgage broker and one of our team before being sent to the bank.
- Delaying Settlement – While the standard form SALE AND PURCHASE AGREEMENT has various warranties in it regarding the state of the property, chattels and Vendor undertakings, the majority of these are not sufficient to hold up settlement if not entirely met by the Vendor. If there are slight complications with the Purchase often they will require some form of retention from the settlement so that those issues can be fixed, i.e. a retention of $1,000 to repair some windows that may have been broken on the property since the date the contract was signed. Please be aware that delays in settlement by you as the Purchaser for reasons that do not entitle you to such a delay normally result in the Vendor charging you penalty interest for late settlement, as per the terms and conditions of the SALE AND PURCHASE AGREEMENT.
With these additional items of information we hope that you are better prepared for your purchase decision, and the process we assist you through.
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