To buy a house in Australia, in order to become the owner of the property in the legal sense, it is also necessary to complete the final formalities for property delivery (Settlement),. In this process, both buyers and sellers' lawyers need to step in, so that the whole transaction process is protected by the law. To protect the interests of both buyers and sellers.
Mr. (Fahey Younger) of Harcourts, a real estate agency, said the delivery day, (Settlement Date), was an important day and a final step in real estate transactions. On the date of delivery, the transfer of ownership of the property from the seller to the buyer also means that the buyer has to pay the balance to the seller, who acquires the title and becomes the owner of the property.
It was also the most exciting day for the buyer, Mr. Young added, because the delivery day was also the day on which the buyer got the key.
Ready to negotiate postponement of delivery
According to reports, the delivery period is generally between 30 and 90 days. Delivery dates are usually decided by the seller, but if the buyer is in good financial condition, all aspects, including loans and other expenses, can be made available for faster delivery; conversely, the delivery period can be more than 90 days, all of which can be negotiated with the seller.
Although there is a clear date of delivery in a real estate transaction contract, it is not uncommon to delay delivery. In general, a delay in delivery usually involves a bank that has not prepared documents or has not completed all procedures by the deadline.
"if this happens, don't panic, but be prepared," Young said. If you can, give yourself some room for manoeuvre. "
He shared an example of a recent deal that delayed delivery: a family with four children did not sign a lease agreement to allow them to enter the house ahead of delivery day, and they had to bring a truck of furniture, four children and a dog. Sit in front of a house where you haven't officially become the owner.
Legal proceedings should be entrusted to professionals
Real estate delivery is a formal legal process in real estate transactions, so it needs to be handled by licensed professional real estate traders or lawyers. In the legal sense, real estate delivery is for banks, together with legal representatives of buyers and sellers, to complete various matters such as laws and loans for the purchase of real estate, and to formally transfer property rights from the seller to the buyer. After that, both sides settle all the money.
Mr Young points out that there are so many documents needed to buy and sell homes that it is important to hire experienced legal advisers. If you do not know any legal counsel before you buy a house, you can find a real estate agent to recommend it.
It is important to ensure that insurance for building parts and interior items is effective from the date of delivery. It is also important to note that the required funds, such as land transfer tax (or stamp duty) or other related costs, must be in place before the date of delivery.
Mr. Young also cautioned that buyers had to make a final inspection of the (Final Inspection), before the date of delivery, that is, to check the structure of the house, whether the appliances and facilities were consistent with the contract, and, if not, to negotiate with the seller. Of course, this step can also hire professionals to inspect the property, but at a cost.
Full preparation for smooth transfer of accounts
Holt (Caren Holt), a mortgage specialist at Domain Loan Finder, reminded buyers to pay attention to timing when dealing with the matter, or it would lead to legal or financial problems because all documents or payments were not ready on delivery date. Every late day will result in a fine.
In order for the delivery to proceed smoothly, both property transfer lawyers or lawyers will prepare the sales contract in advance and have the buyer and seller sign each other. Holt added it was important to ensure that all funds for delivery, including land transfer taxes, or other costs that might be incurred on the day, could be in place by that day.
As a professional mortgage lender, Holt's job is to help buyers understand the money they need, to help them navigate mortgage documents, and to ensure that buyers meet all the requirements of lenders. So that the delivery date specified in the contract can be delivered smoothly.
Holt noted that in the course of the loan, buyers needed a lot of documents, including identification and sales contracts, which needed to be prepared by professionals. The buyer's primary responsibility is to sign the document and prepare other documents and certificates needed for the loan to be approved.
