Property Law
What reports do I need to obtain before entering into a contract?
It is advisable to obtain reports before exchanging contracts so that you can make some assessment about the condition of the property. There are a number of different reports which you may obtain such as building inspection report, pest report, strata records report (if applicable) and contamination report (if applicable).
What is stamp duty?
Stamp duty is a State tax on a range of paper and electronic transactions, such as:
- Hire purchase agreements
- Insurance policies
- Leases and mortgages
- Motor vehicle registration and transfer
- Transfers of property
When do I pay stamp duty and how much?
Stamp duty is calculated based on the purchase price and it is payable within 3 months of exchange of contracts but must be completed before settlement. When a buyer is obtaining finance stamp duty on the mortgage will also be payable. However, if you are purchasing a property "off the plan" you can postpone payment of stamp duty for up to 1 year.
What is "cooling off" period?It is a clause which gives the buyer a period in which to decide whether to proceed with the contract. The Conveyancing Act in New South Wales provides that buyers of residential property are entitled to a "cooling off" period of 5 business days after contracts have been exchanged and deposits paid.
When do I pay a deposit?
The deposit is usually 5% or 10% of the price. You are required to pay the deposit on exchange of Contracts.
What does exchange of contracts mean?
Refers to the date on which the contract signed by you is exchanged with the counterpart contract signed by the purchaser. On this day an owner becomes bound to sell the property and the purchaser becomes bound to buy it subject to any "cooling-off period".
What is settlement?
It is the day upon which the sale is made final; when the process of conveyancing is finalised and the buyer is able to take possession of the purchased property. This process usually takes about six weeks after contracts have been exchanged
What is the difference between exchange and settlement?
At exchange the contract usually becomes binding and at settlement you either own the property as Purchaser or complete the sale as Vendor.
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Topics
- Property Law Information on the area of law governing various forms of ownership in real and personal property.
- Wills Planning ahead by expressing wishes regarding the disposal of property after passing away.
- Probate The legal process of administering the estate of a deceased person by resolving all claims and distributing the estate.
- Family Law Dealing with family-related issues and domestic relationships according to the law.
