Checklist – ten things to remember when buying or selling real estate
Buying or selling real estate can be daunting if you are not familiar with the process. If managed appropriately, it should be a stress-free, enjoyable and exciting experience.
Here are ten important things to remember when you are buying or selling real estate.
- You should understand the sale contract. This will usually mean having the contract reviewed and explained to you by your solicitor before you sign it. Quite often, it will be necessary for your solicitor to negotiate some of the terms of the contract for your protection.
- The buyer should require that the contract is subject to their obtaining a satisfactory written report from a building inspector and a pest inspector.
- If the property is part of a community title scheme, the buyer should also require that the contract is subject to their obtaining a satisfactory written report about the records of the body corporate.
- After the contract is signed by both the buyer and the seller, the seller’s title to the property must be carefully investigated to ensure that the buyer does not inherit any problems after settlement.
- After the contract is signed by both the buyer and the seller, the buyer will need to arrange appropriate insurance.
- If the buyer is obtaining finance, their solicitor and their financier (and if it is an investment property, their accountant also) will need to work together closely.
- If there is a mortgage on the property, the seller’s solicitor will need to work closely with the seller’s financier.
- The transfer documents must be carefully prepared by the solicitor for the buyer in the form prescribed by the government to ensure that the buyer will be correctly registered on the title as the owner of the property after settlement.
- During the period leading up to settlement, accurate calculations must be undertaken to ensure that the buyer pays the correct amount on settlement, including all adjustments to which both the buyer and the seller are entitled.
- Shortly before settlement, the buyer will need to conduct a final inspection of the property. If the buyer’s inspection discloses any problems, it may be necessary for the solicitors for the buyer and the seller to negotiate a resolution of those problems.