Hi all,
I would like to ask ( if possible ) for someone to explain all the steps/procedures involved when purchasing a property ( owner occupied/investment) from the moment a contract of sale is created to the settlement date.
I understand there’ll be two legal representatives, one on each side. Vendor will raise the contract of sale.
I’m really curious about:
– what kind of information is contained in this contract of sale ?
– what responsibilities do the solicitors have when they’re representing you. Do they organise reports ? what reports ? what other paperwork (if any) must they also organise for you ?
– what fees are there other than stamp duty ?
– what happens on settlement date and who will be present ?I understand that you may be eligible for FHOG & Stamp duty exemption if you intend to live in your investment property within 12 months, who will organise these paperwork for you ?
I guess I just want detailed information and ensure all bases are covered to avoid any surprises last minute.
Thanks in advance.
Regards,
elim.Hi
I highly recommend going through a good mortgage broker, they will walk you through each step, and let you know exactly what you need to do and when.
Given the differences between the states, I think this is the best thing for you to do.
CheersAgreed on a good mortgage broker they will take care of all those things
make sure ur solicitor checks that any outstanding land tax has been paid for on the property (assuming its tenant occupied already) before u buy it.
solicitors usually do this, and also a building inspection report (right name?) where they check for things like termites etc.
get them to interpret the contract of sale for u.. or even better, read it urselfmake sure ur 100% aware of the dates involved with cooling off period, settlement date etc. depending on the contract of sale, if u dont have the finances ready by a particular date, u can loose ur deposit (depends on the contract).
Banks can take a while to approve ur finances so be wary of this.thats all off the top of my head for now.
hey elim,
thats a pretty in depth question and would take forever to answer in detail but simple steps would be …
1.) Find a property
2.) Do research of local area
3.) once research area make an offer (with certain conditions)
4.) offer is then accepted or declined
4.) If accepted, contract of sale will be issued and signed
5.) If accepted the if you didn’t state in offer the vendor or agent will set a finance date, in which you need to have an approval letter.
6.) If offer accepted find a broker to walk you through the process.
7.) Broker to submit application
8.) condition approval given (usually 24-72hrs)
9.) conditions met (usually valuation, LMI approval, and any extra supporting docs.) (up to a week depending on valuation etc)
10.) Unconditional or Formal approval issued (24-48 hrs)
11.) Loan Offer docs written up by lender’s solicitor and deliver to client for signing
12.) once loan offer docs returned to lender, they certify docs and are usually ready to settle within 2-4days
13.) Loan settlement occurs
14.) property handover can occurphew … thats simplified but gives a general idea.
It’s imperative that you find a broker that will assist each step along the way and that will assist you have settlement also if there are any post settlement issues that need to be sorted out.
There are few fees involved apart from stamp duty however each state is different so this is where a good broker will be able to assist you with a estimate or qoute for fees and charges.
Good Luck
Joshua FlackInvestor Finance
[email protected]Hi elim
Joshua explanation of the process is good although all i would say the process can vary from State to State with regards to Cooling off periods, unconditional dates, FHOG etc etc
Which State are you looking at purchasing in ?
Cheers
Richard Taylor
Residential & Commercial Finance Broker
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just as others said, theres alot of steps involved.. remember this is a PROPERTY you are buying not a pair of shoes… its one of the biggest / most expensive things most people buy in their life. so be prepared !
Hi all,
really appreciate all the responses, thanks !!!
I’m planning to purchase in NSW and Joshua has answered most of my curiousities.
Thanks again !
elim
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