Not sure what you should be aware of when selling and/or buying. We have put together some tips to help you through the process.
- Have your Valuer supply a copy of the title as it will generally be cheaper than getting it from your lawyer
- Most Electricians and Plumbers will inspect the electrical and plumbing services for you for a modest charge. It is worth it to ensure there are no nasty surprises!
- If you don't get a builders report done, you need to have a look in the ceiling to confirm if insulation is present & if it covers the whole ceiling area.
- Ask your lawyer to fully explain any encumbrances or interests recorded on the title.
- Don't feel embarrassed about door knocking your potential neighbours to see what they are like; it's too late after you buy the place!
- We recommend getting a LIM (Land Information memorandum) report from your local council but you need to allow enough time for this to happen.
- It may pay to enquire with the local council to see what the time delay is for a LIM before signing the agreement.
- If at all possible, get pre-approval from your bank to become a 'virtual cash buyer'. This could act in your favour when it comes to negotiating the purchase price.
- Have your lawyer review the sale & purchase agreement details before you sign them OR make it "subject to lawyers' approval".
If attending a Mortgagee auction, you need to be aware of the pitfalls of buying under mortgagee conditions:
- Chattels are not guaranteed as the bank doesn't own these;
- You may not get vacant tenancy therefore you may 'inherit' existing tenants or the old mortgagor;
- Condition of the dwelling is not guaranteed by the bank;
- You may not get keys so may need to get a locksmith in urgently;
- Liability for the property falls on you immediately the property is sold so you may need to change all locks immediately;
- Some Insurance companies may not insure you as you don't have an 'insurable interest' in the property until you pay the full amount;
- You usually have to pay a 10% deposit immediately on the sale of the property;
- You need to pre-arrange funding if attending an auction;
- You need to review the terms and conditions of the sale and purchase agreement as they are different to a standard agreement.