Buying property?

1. Speak to your preferred lender and obtain pre approval for your loan.

2. Find the property you want to purchase.

3. Ask us to review the Vendor Statement (also known as a Section 32) & Contract before you sign.

4. Sign the purchase contract & let us take care of the process, making your experience as simple as possible.

Finance

Prior to signing a contract that is subject to finance, we advise obtaining pre approval from your lender. Once a contract has been signed, we will liaise with your lender to obtain formal or unconditional approval and help you to make the contract unconditional. At this time, we will coordinate with the lender to prepare the mortgage documentation and have the loan proceeds made available at settlement.

Settlement

Settlements are now completed online through PEXA rather than face to face so you no longer need to attend settlement. Prior to settlement, we will have you complete a verification of identity and client authorisation form. Signing these documents will mean that you won’t have to sign physical registry documents or attend a physical settlement. In the lead up to settlement, we will prepare the required legal and financial settlement documents. At settlement, we will electronically exchange documents and finances and the ownership will be transferred.

Stamp Duty 

Calculating your duty

This calculator works out the land transfer duty (previously stamp duty) that applies when you buy a Victorian property based on the date of the contract for your property purchase or if there is no contract, the date it is transferred, and the dutiable value of the property (generally, the purchase price or market value at time of contract, whichever is greater).

https://www.sro.vic.gov.au/calculators/land-transfer-calculator

Concession on duty

Eligible pension cardholders can claim a once-only exemption or concession from duty when they buy a property they intend to use as their principal place of residence.

This calculator works out the land transfer duty which applies when you buy a home by yourself or with another person, and claim the pensioner duty exemption or concession. It includes the principal place of residence concession, and foreign purchaser additional duty if it applies.

If you are an eligible pensioner, you may be entitled to a once-only:

• exemption from duty when you buy a home valued at $330,000 or less, or

• concession from duty when you buy a home valued from $330,001 to $750,000.

https://www.e-business.sro.vic.gov.au/calculators/pensioner-concession-duty

Building on vacant land 

If you buy vacant land and then enter into a contract to build your home within three years, you have to pay the usual rate of duty when you buy the vacant land. 

The exemption or concession will only be provided when your home is finished. Generally, this means you must pay the duty at the time of settlement on the land and apply for a refund if your home is constructed within three-years of buying the land. You have five years from the date the duty was paid to apply for a refund.

We will prepare and submit the required State Revenue Office Duties Form for stamp duty assessment purposes. The Duties Form will reflect your circumstances and intentions for the property, as instructed by you. The Duties Form will be forwarded to you for your execution.

Title Insurance

Title Insurance is a specialised type of property insurance available to purchasers and home owners. It protects your ownership and use of the property by guarding against certain unknown and hidden risks that may cause you loss or affect ownership. Title Insurance is available to you by way of a one-time premium that will insure your property for the duration of ownership.

Residential Purchaser Policy provides cover for properties that are zoned residential or rural and also provides cover for properties which are vacant land.

Purchasers are covered for actual loss caused by a broad range of risks such as:

  • Unapproved Building Work
  • Registration Gap
  • Fraud, Forgery & Identity Theft
  • Boundary & Survey
  • Planning & Title Defects
  • Outstanding Rates, Taxes & Levies
  • Unpaid Local Infrastructure or Local Improvement Levies
  • Section 27 early release of deposit statement

    In order to release the deposit, when you have a registered mortgage, you need to provide specific mortgage particulars to support the release of the deposit. The particulars need to evidence things such as not being in default of your mortgage and that you owe less than 80% of the sale price.

    You need to arrange for the mortgage particulars set out below to be provided by your bank, on letterhead, prior to us being able to prepare a Section 27 Statement.

    Once we have the mortgage particulars we can prepare a Section 27 Statement for you to sign and return to us.  We then serve it on the purchaser’s representative. If the purchaser signs immediately, we can release the deposit immediately. If they do not sign, and provided they don’t object to releasing the deposit, we can release the deposit at the expiration of 28 days from the day of service. Grounds for the purchaser to object would be if there are any conditions in the contract outstanding, to the benefit of the purchaser.

    Particulars to be provided by your bank, on letterhead (not in an email), are as follows:-

    1. Original amount secured by the mortgage;
    2. Amount now outstanding under the mortgage;
    3. Confirmation that the mortgage does not provide for further advances;
    4. The current interest rate and default interest rate;
    5. Date by which the mortgage is to be repaid;
    6. Amount and frequency of instalments;
    7. Confirmation that the vendor is not in default under the mortgage.

    Verification of Identity (“VOI”)

    The Land Title’s Office has introduced a Verification of Identity (“VOI”) policy, which requires all parties entering into a real estate transaction to provide proof of their identity. The VOI must be undertaken by each person and/or each company director and must take place prior to settlement being effected. The VOI will then be valid for a period of 2 years. The identification data collected by Australia Post is forwarded to us to retain as evidence of your identity. In the event that you are unable to complete the VOI at Australia Post, please contact our office to make alternative arrangements. 

    Description of land

    It is important that you are satisfied that the location and measurements of the property are identical with those shown on the plan contained within the Contract of Sale. Please let us know immediately if the boundaries seem incorrect. We recommend that you arrange for a survey report if you have any reason to believe that the boundaries of the property are incorrect.

    Caveat

    We will lodge a Caveat against the Title if you instruct us to do so. The effect of the caveat is that the Registrar of Titles may not register any instrument affecting the land without first notifying us, and it puts third parties on notice of your interest in the land as purchaser. The existence of a caveat may be helpful if the Title cannot be searched immediately prior to settlement, and also if there is any delay in lodging or registration of the instrument of transfer after settlement.

    Insurance

    Once you sign a contract for sale, you have an insurable interest in the property you are purchasing. Whilst in normal circumstances the vendor carries the risk of loss or damage to the property and chattels until settlement, it is advisable to take out your own insurance on the property at this stage.

    Most insurers will provide a cover note at no charge until settlement.

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    Transfer document

    The transfer document is prepared and signed electronically by our office on your behalf, once the signed client authorisation is returned to our office and you have completed your verification of identity.

    For your information, where there are multiple purchasers of a property, the transfer of land can be drawn in the following ways:

    Tenants in common – On the death of one of the persons owning the property, the deceased person’s share of the property will pass to the beneficiaries specified in the deceased’s will.

    Joint tenants OR proprietors – On the death of one of the persons owning the property, the deceased person’s share of the property will pass to the joint owner irrespective of the terms of the deceased’s will.

    Let’s build something together.


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