Owning real estate seems to be the dream of many Australians. When you own your own property you are free to do what you please with it. Unlike renting, home owners are able to renovate their home, paint it to suit their tastes, add an addition if need be, use it as an investment property, sell it or will it to loved ones. Real Estate has also proven to be an excellent investment. In most instances the money that is invested into real estate is profitable and has a good return. Some Australians are put off from buying real estate due to all of the legal paperwork, permit requests, planning control boards and other things that needs to be taken care of. With this simple checklist we will help to break down the legal process of purchasing a home and make the process easier to understand and less daunting.
Understanding Conveyance In Australian Real Estate
The conveyance process does not have to be a cause for headaches. Conveyances in Australia vary from state to state but typically they all involve:
- Contract paperwork that includes a contract note or contract of sale which includes details about the property. The contract paperwork should also have a fixed settlement date on it, generally 30, 60 or 90 days.
- Certificate of Title will confirm the current ownership of the property and tell whether the property has any encumbrances on it.
- A land transfer document will be finalized at the time of the settlement
- If you are purchasing an apartment the body corporate certificate will discuss the maintenance of the buildings and list out the current maintenance payments that are being made.
- The mortgage paperwork will be done to by your solicitor or conveyance. Specific paperwork will need to be provided to show your ability to pay the mortgage and verify other important information.
- Other costs involved with purchasing real estate include utility fees and council fees. These fees will be discussed during the settlement.
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{ 2 comments… read them below or add one }
Hi Sean,
Thanks for breaking down the conveyancing process so that it’s very easy to understand. It’s something that I’d rather have a professional handle but it’s good to have an understanding of what’s going on.
I would rather avoid any and all legal real estate issues and I think using a professional is the way to go.
People may feel anxious about all these legal issues but it is all part of a system and normally it all just ‘flows’ along without a hitch. For a first home buyer, they are in new territory and are nervous about signing every document. This checklist may give them more confidence with what they are doing.