With the Reserve Bank of Australia’s recent announcement of a 0.1% reduction in the cash rate target, resulting in better access to home finance in Queensland, it is no surprise that more and more individuals are considering purchasing a home. The initial steps of reviewing sale advertisements, attending open houses, making offers and signing a contract, are commonly known. However, the process of purchasing a home beyond these initial steps can be tricky, especially when purchasing a home for the first time.
We have prepared the following list of immediate and crucial steps after signing a contract.
Engage a conveyancer
Engaging an experienced conveyancer is essential. Conveyancers perform the important tasks of completing legal paperwork and conducting property searches which ensure a buyer’s interests are protected. These property searches include title searches for registered encumbrances, interests and administrative advices, land tax searches, local government enquiries, rates searches and water meter reading. They also assist buyers in obtaining pest and building inspections, pool safety inspections and finance approvals. For more information on selecting a conveyancer, read our blog post titled “Tips for choosing a conveyancer.”
Insurance, insurance and… insurance!
From 5:00pm the next business day after the contract is signed, the property becomes the buyer’s risk. This means insurance is a priority, as without it, buyers will solely bear the cost of damage to the property.
The majority of residential sales contracts are conditional upon a buyer obtaining approval of a loan from a financier by a certain date. Whether a contract is subject to finance approval depends upon whether the relevant fields contained in the contract have been completed. The conditional finance period can be described as by a certain date or as within a certain number of days after the contract date (such as 14 or 21 days). Irrelevant of the period, the window to obtain finance is usually tight, so it is best to get the ball rolling as soon as possible.
Arrange building and pest inspections
Similar to finance approval, a contract can be conditional upon a buyer obtaining a written building and/or pest report(s) from a building and/or pest inspector(s) within a certain period. The period is specified in the contract and in most cases, it is around 14 days. It is best to arrange the inspections as soon as possible to avoid any unforeseen issues or delays. In some cases, a conveyancer will assist a buyer with selecting an inspector and arranging a date for the inspection.
The key to navigating conveyancing
When it comes to conveyancing, being organised and aware of crucial contractual dates is a must. This can be difficult for buyers that are unfamiliar with the process of purchasing a home or are busy with work, family and life. Conveyancers provide buyers with peace of mind, as they know about hidden pitfalls and important contractual deadlines. They also complete legal paperwork and conduct various property searches to ensure the interests of the buyer is protected. At Bennett Carroll Solicitors, we offer fixed prices on all conveyancing matters. For more information head to our Conveyancing Page.