What is Conveyancing?
Conveyancing is the transfer of legal title of real property from one person to another. It is a necessary process in both buying and selling property.
What is a Vendor’s Statement?
A Vendor’s Statement (also known as section 32) is a document that discloses to potential purchasers certain information about the property they should know before signing a purchase Contract.
The reason it is called a Section 32 statement is because the information it must contain is set out in Section 32 of the Sale of Land Act 1962. The Section 32 statement contains information about the property’s title, including:
- outgoings (for example, rates)
- declaration if located in a bushfire-prone area.
As it is a legal document, it must be factually accurate and complete. If it contains incorrect or insufficient information, a buyer may be able to withdraw from the sale or take legal action against you.
Usually, the selling agent makes the document available to prospective buyers before the sale or auction.
What is ‘Cooling Off’?
A cooling-off period of three clear business days applies to private sales of residential and small rural property sales.
The cooling-off period gives you time to consider the offer. It begins from the date you sign the contract, not from the date the seller signs it.
If you decide you no longer want to buy the property, you can cool-off by giving written notice to the seller via their conveyancer. You will be entitled to a full refund of any money paid, less $100 or 0.2 per cent of the purchase price, whichever is greater.
The cooling-off period does not apply if:
- the property was purchased at or within three clear business days before or after a public auction;
- the property is used mainly for industrial or commercial purposes;
- the property is more than 20 hectares and used mainly for farming;
- you previously signed a contract for the same property with the same terms; and
- the buyer is an estate agent or corporate body.
What are adjustments?
Settlement Adjustments are used by us as, your Conveyancer, to work out the Vendor and Purchaser’s share of the council and water rate proportions and Land Tax and Owners Corporation levies if applicable.
When can I collect the keys?
Once you receive advice from us that settlement has been effected, you will be able to collect the keys from the Real Estate Agent or Vendor directly if there is no agent involved.
What does a Conveyancer do?
A Conveyancer helps with the title transfer process and subsequent settlement by ensuring that their client is meeting all legal obligations and that their client’s rights are protected during this transaction.
What is an Owners Corporation (formerly body corporate)?
An Owners Corporation manages the common property of a residential, commercial, retail, industrial or mixed-use property development. You are likely to be a member of an owners corporation if you own a flat, apartment or unit
If you intend to sell your property, you must include an owners corporation certificate and accompanying documents in the Section 32 statement.
Section 32 statements are sometimes prepared up to 12 months before the sale of the property, so buyers should either:
- ask for a new certificate before settlement, or
- make a time to inspect the owners corporation register and records.
While it is free to view the owners corporation register, the owners corporation can charge a fee if you want copies of any documents. For a list of the fee limits, you can view the Fees – owners corporations page on the Consumer Affairs Website.
What is a ‘Due Diligence Checklist?’
All sellers, or estate agents acting on their behalf, must have due diligence checklist available to prospective buyers. The checklist aims to help buyers identify any issues that may affect their decision to buy the property, such as buying into an owners corporation, flood or fire risk, or whether there is insurance coverage for recent renovations.
What are searches?
Property searches are certificates that disclose additional information about the property you are purchasing. As part of the buying process, as your conveyancer, we will carry out a variety of ‘searches’ with the local authority and other parties.
Do I need to attend settlement?
No you do not need to attend settlement. As your conveyancer, we will do this on your behalf and will advise on settlement is complete.
GST on Property Sales
The Goods and Services Tax (GST) applies to the purchase of new homes. It does not apply to established homes unless the seller is registered for GST. You can check a sellers GST status on the Australian Business Register website. The contract must clearly specify whether the price is inclusive or exclusive of GST and, if included, the amount of the GST. Do not sign the contract without checking whether GST applies. If uncertain, speak with us today.
Ready to Buy or sell?
For a professional and prompt analysis of your conveyancing needs contact us today!
PO Box 6065, Point Cook VIC 3030
Kathryn - 0490 418 120
Liz - 0432 916 454