Hi there. Buying a property can be exciting but it also involves a lot of planning and administration. Before you buy a property, you should consider things such as your budget, the costs involved (including legal and conveyancing fees, loan establishment fees and government charges), and how you will finance your new property.

You can purchase a property by private sale or by auction. In a private sale, the property is advertised and you can make an offer as a potential buyer. You negotiate with the seller and agree on a sale price, usually with the help of a real estate agent. The sale contract can be conditional if the seller agrees to it. This means you can include particular conditions that must be satisfied before the sale is complete. For example, the sale may be subject to you obtaining a loan or a satisfactory building inspection report. Once you have signed a sale contract, you generally have a three day ‘cooling off’ period in which to change your mind.

In a sale by auction, the terms of the sale contract are displayed publicly before the sale. If you successfully bid on a property at auction, you will be offered a contract on the same terms. You cannot add any conditions to the contract, such as obtaining finance. There is also no ‘cooling off’ period for a purchase at auction. Auctions offer unique advantages to buyers but require expert advice to be obtained beforehand.

Settlement occurs at a future date, usually 30 to 90 days after the contract is signed. ‘Settlement’ refers to the date on which the full amount of the purchase price is paid and ownership of the property transfers from the seller to the buyer. Before settlement, you should check the plan of the land to ensure all measurements and boundaries correspond with the Certificate of Title. If there are any problems with the plan, you should speak to a lawyer or conveyancer about them before the settlement date.

On the settlement date, certain legal documents are exchanged, existing mortgages may be transferred or new financing arrangements may commence. This is the date on which you take possession of the property. After the settlement date, the buyer is responsible for paying land transfer duty (formerly known as stamp duty) to the Victorian State Revenue Office. The buyer (or their lawyer) is also responsible for lodging a ‘transfer of land’ document with the Land Registration Services office, which registers your purchase of the property.

More information about buying a property is available from Consumer Affairs Victoria (www.consumer.vic.gov.au).

Hi there,

Please email me at steve@miliceviclawyers.com.au

I'd be happy to assist,

Steve