Buying Questions On Property Investing
What are the legal steps in a normal investment property purchase?
There are a number of steps in a standard conveyance, although they vary from State to State:
1. Collecting relevant information - title search, certificates, inspections
2. Arranging finance
3. Contract - check conditions, sign and exchange
4. Requisitions on Title
5. Prepare the Transfer of Land
6. Rate adjustments
7. Arrange settlement with the seller and bank
8. Settlement
9. Lodging and notifying authorities
What happens if settlement is delayed?
This depends on why it is delayed. If it's your fault, the seller will probably ask you to pay penalty interest.
What are requisitions on title?
These are questions that you ask the seller about the property.
What sort of special conditions are likely to be in a contract?
They can cover many issues. Some of the conditions you should be wary of include: releasing the deposit before settlement, penalty payments if you don't settle on time, etc.
What if I do a title search and discover a caveat on the property?
A caveat is a warning that another person or company has an interest in the property. For example, it may be to secure a personal loan. If there is a caveat, make sure that it is removed before or at settlement.
When should I get insurance?
You should think carefully about insuring the property after you exchange contracts. Although it is not strictly necessary until settlement, you are entitled to have insurance from the time of exchange. Check with your solicitor or conveyancer.
Can I buy a house with another person?
There are two types of co-ownership. Joint tenants are just that they own the property jointly. This is usually the way property is owned by married and de facto couples. Joint tenants own equal shares of the property.
Who does conveyancing?
Mainly solicitors. In some states there are also licenced conveyancers. There are also do-it-yourself kits produced for some States.
