Buying a Property

Practice Areas > Buying a Property

The risks associated in buying a property depends on the type of property purchased and how it is purchased. You may purchase a property which is;

· sold off the plan

· free standing

· semi detached residence

· subject to an Owners Corporation

Each of these situations gives rise to unique challenges, legal issue, stamp duty and other tax issues. The property may also be subject to heritage restrictions, special Owners Corporations rules (if buying a unit or apartment), council parking restrictions and other limitations not otherwise stated. In most cases, many of these restrictions will not be contained in a Section 32 Vendor's Statement unless required by law.

 The question you should always ask yourself when looking at a Contract of Sale and Section 32 Vendor's Statement is "what information is missing from these documents"? The answer could impact significantly on your decision to buy. You should also have these documents reviewed by experienced property law practitioners.

 mdp McDonald Parners' property law team, consisting of lawyers and a conveyancing clerk, can offer you timely and cost-effective legal advice for the purchase of your property.

Contract of Sale and section 32 Vendor's Statement

A Contract of Sale in Victoria includes additional documentation known as a "Vendors Statement" or "section 32 statement". This document should include:

· The certificate of title

· Details of any charges over the property (mortgages, other financing arrangements)

· Whether the property is subject to heritage overlay regulations or other planning laws

· If the property is leased or licensed out to another person

· Plans for compulsory land acquisition by State of Federal Government Authorities (acquiring an easement over the property for the purposes of constructing pipelines, road works or other utility services.

In all circumstances, it is recommended that you always thoroughly check the title and any other documents associated. The section 32 Vendor's Statement should also be reviewed by an experienced property lawyer or conveyancing clerk.

Failure to undertake a thorough review and examination of the documentation may risk exposing yourself to restrictions or problems with the property which would have otherwise averted you from purchasing the property in the first place. Your purchase, your responsibility - buyer beware!

Settlement

Settlement is finalisation of the sale transaction. It is the point where the vendor hands over documents to enable the purchaser to become the registered proprietor of the property in exchange for the balance of the funds promised in the Contract of Sale.

The key to a smooth settlement is preparation. It is important to keep the client informed of the settlement details and of their right as a purchaser to a final inspection of the property.

Arrangements are made between the conveyancing practitioners as to the settlement time. Settlement follows title. Therefore the purchaser is obliged to settle at the place nominated by the vendor.

Prior to settlement there are certain calculations to be made so that the client can fulfil their obligations at settlement. The statement of adjustments and settlement statement must be calculated and checked so that each party is aware of the amount of the funding required to complete settlement. Arrangements have to be made to clear a vendor's title, including pay-out figures from any mortgagee or caveator. A final search of the title is made to check the information obtained from the Register within the preceding 105 days. This search is usually done on the morning of the settlement day. Arrangements should be made regarding the keys to the property. They are usually left with the Estate Agent selling the property.

After settlement stamp duty has to be paid as well as registering the new purchaser's name on the title. Paying outstanding rates and taxes and sending notices to all relevant authorities of the change of ownership must be completed within a month of the settlement date.

mdp's property team can assist with the arrangements before and at the settlement, including finalising all documentation and attending the settlement.

Our Services

mdp McDonald Partners' property team has extensive experience acting for purchasers in the sale of property, for everything from the purchase of a family home or investment property up to large-scale commercial developments. We can provide timely and cost effective advice on all aspects of the purchase of a property, including the Contract of Sale, section 32 Vendor's Statement, release of deposit, Statement of Adjustments and all other related documentations.