Do you have a tale of a property sale gone wrong due to the hasty commitment to a sales contract without professional advice? We all know someone who knows someone who has lost out on a deal and these stories should serve to caution sellers and buyers alike to seek expert help early on in the process, but it seldom happens.
Most of the time a property sales works out well for all parties however when it goes wrong it’s usually due to the vendor or the purchaser not understanding what they’ve signed. It’s difficult to change a sales and purchase contract after it has been signed too. All too often vendors (homeowners selling their property) and homebuyers get swept up in the emotion of the deal that they pass over the really important stuff – the legal terms of the contract.
Whether you are the vendor or the purchaser, here’s how a conveyancer can help you with property transfers.
Easier, Faster Process
No one is required by law to engage a lawyer or hire a conveyancer when they sign a contract. However, most countries do have legislation that provides the ticks and balances of actions to take before signing your life away. Timing is everything so it’s valuable to engage professional advice from legal and accounting experts as soon as you can, i.e. when you know you’re keen to buy or sell a home.
Most homeowners have a mortgage therefore when you sell you need to know the property sales price will cover what’s owing and give you a healthy return so you can use it as the deposit for your next home, or retirement. For first home buyers, you too need a mortgage and you may qualify for grants too. Knowing exactly what you can afford sets you up for securing a home for the right price.
Your ‘power team’ which should include your financial advisor, accountant property lawyer or conveyancer can set you up for success ahead of deadlines. Conveyancers take the responsibility of preparing the documents, drafting the contracts, and keeping track of the deadlines of submissions. For a newbie, all these tasks are overwhelming, and delaying even just minutes is costly and hassle.
Increased Awareness of Rights
Property law is a tricky world filled with jargons and cunningly-worded statements that cause nausea more than jetlag does. To avoid falling into a trap, you must exercise caution and be better informed of your rights and obligations. Conveyancers can help you not only draw, revise, or edit the Contract of Sale, but also educate you on your rights and obligations as either the seller or buyer.
It’s perfectly fine if you cannot fully distinguish how a Deed of Sale is different from a conveyance. It’s not okay, however, if you’re aware that you lack the knowledge and still refuse to get help. In property acquisitions, errors are costly so seek a trusted licensed conveyancer.
Avoidance of Bad Deals
With their knowledge and experience, conveyancers and lawyers ultimately serve the purpose of helping buyers and sellers avoid unjust deals. They guide you throughout the process, informing, directing, and educating you. Above all, they present options and give you honest descriptions of the outcomes, thus helping you decide better which course of action to take.
Avoidance of Penalties
Acquiring a property is in itself a costly undertaking in the form of fines and penalties if you don’t do your part of the contract. For example, settling on time can incur late settlement fees. Your power team can act as your property gatekeepers, ensuring that the contracts for finance and the property are drafted, property title searches complete and the necessary actions are taken are in accordance with the governing law. Caveat Emptor: the law is not the same in all states yet alone countries so it’s not a ‘one size fits all’ when it comes to buying and selling real estate. For example ask your conveyancer what is a section 32? It’s part of the Sale and Land Act in the state of Victoria, Australia.
When you sell a home, for instance, your Vendors Statement must stipulate terms that are in line with the prevailing building safety requirements, local council zoning, planning, and other important considerations. If you are unfamiliar with the requirements, doing research helps. Then again, a week-long Internet search will never equal to the 5-year experience of a good property professional. At the very least, your desktop research will enable you to easily follow conversations, understand contracts, and draw comparisons when needed. The rest of the strategic negotiations, word-crafting, and paper wars falls on the capable hands of a lawyer or conveyancer.
Selling properties is a tough job, particularly when you are new to it, or as with most owner-occupiers, it’s something you’re only going to do a handful of times in your lifetime. Industry connections are fundamental, to ensuring your property is marketed well, to reach the right target audience of prospective homebuyers. Your power team will most likely have their own network of agents, buyers, banks, and freelancers you can contact.
In terms of buying properties, it’s definitely easier to find them now property listings are online and who would doubt Google’s algorithms to find properties that match your requirements! :0
For most of us, owning a property is our biggest asset yet often we will take more time over choosing what to eat for dinner than signing our lives away on a property purchase agreement. Well, you’ve been forewarned – that heed and get your power team sorted and part of the process before there’s no turning back.
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